Economic analysis has become increasingly central to the climate policy debate, but the models and assumptions of climate economics often lag far behind the latest developments in this fast-moving field. This report aims to correct this problem and identify areas where substantially more research must be done. The first of three major sections covers climate science that is potentially relevant to economic analysis, including uncertainties in climate dynamics, the role of black carbon, temperature thresholds for irreversible losses, and a new understanding of climate impacts on agriculture. The second section focuses on innovations in the economic theory and analysis of climate change, whilst the third section turns to research on mitigation and adaptation, including cost projections for various mitigation scenarios.