Climate change, its existence, causes and effects, has been disputed by researchers, academics and policy makers. The given degree of international consensus varies greatly between those most affected by changes to climatic conditions in contrast to those who are estimated to only experience a limited effect.
Controversially, it can also be claimed that some regions are set to gain from climate change such as the polar region nations currently disputing resource claims and logistic networks. In analysis of available data, research suggests the increased intensity of storms, hurricanes, cyclones, flooding, droughts, bushfires, mudslides and hailstorms along with increased temperatures, rising sea levels, and changing to pressure systems. With climate change as a global phenomenon, not isolated to a certain region, the interest of stakeholders remains strongest in those with the ‘smallest’ voice such as the coastal areas, islands, commonly catastrophe prone and ‘future’ catastrophe prone regions in South East Asia.
The re-insurance industry does not have the luxury of time in which to debate the ‘possibility,’ of climate change but rather to focus on the ‘probability’ of the consequences. With the cost of natural disasters predicted to rise exponentially in coming decades, the issue of human security is measured in economic terms. The economic effect of climate change is vague with popular measures of market costs, changes in quality of life, lives lost, species lost and variations in cost distribution and subsequent benefits. These costs are summoned into willingness to pay (the readiness of people to exchange their capital or income for improved human security) and willingness to accept compensation (the amount of compensation needed to see inhabitants forgo certain standards and accept deteriorating conditions).
With 2005 noted by the insurance industry as holding the highest economic loss (USD $230 billion), the economic implications of natural catastrophes is apparent holding 2-9% of GDP in aggregated monetized damage. As 1-1.5% of this aggregated monetized damage occurs in OECD nations and 2-9% in developing nations the interests of regional stakeholders can be distinguished according to strength of climatic conditions on their area. In response, the re-industry has moved to new catastrophe modeling systems, developed new insurance products, flaunted ‘green’ initiatives and created new defenses against climate-related claims in order to analyse and more effectively assess the probability of risks and integrate problem solving mechanisms.
As in all industries, re-insurance is a case of supply and demand with dominant players holding the reins of the insurance industry to mitigate larger risks by providing financial backing, reduced exposure to insolvency, and stability due to the geographically spread risk. The North American market has long been the most strongly insured of the regional global markets with the Asian region seen as the rising star due to the increased economic development and subsequent demand for insurance. Depending on the region, insurance coverage as well as government relief funding, will be limited in relation to the location’s level of risk. As the South East Asian region hosts increasingly prospering nations, situation in medium to high risk areas for natural disasters, the risk must be carefully calculated; after all, it is a business. This region holds a high propensity for natural disasters including earthquakes, tsunamis, flooding, mudslides, and storms whereby currently effected regions are expected to be joined with newly affected regions due to global warming.
Whilst the economic imperative is addressed through the continuous revision of insurance policy and claim trends, the question of ‘protection’ remains. The role of insurance is that of a safety net; to catch those who stumble and fall in situations which could not have been circumvented. With the individual and the community at the centre of the human security issue the issue prevails; who will catch them when they fall?
Human security surpasses traditional notions of security to comprehensively include environmental, political, social and economic aspects. In the case of environmental security, the threat thereto is not isolated to a particular individual or community, but rather an intensified affected core with global repercussions. Risk management, as in the case of insurance risk, credit risk, market risk, and operational risk, is the cornerstone of re-insurance with underwriting controlling the limits of insurance and identifying information such as in the case of natural catastrophes and environmental threats. Re-insurance is not a philanthropic concept or support network, but rather an industry interdependent with the global economy and market trends whereby weakened global financial markets and investor pessimism are critical factors.
The re-insurance industry, particularly internationally, is marginally transparent with the safety net not extending to all areas. The series of ‘no-go zones’ demonstrates the economic imperative and business rationalism which conducts the insurance, and indeed protection, of regions. The ‘no-go zones’ are specific geographic regions considered too ‘high risk’ for re-insurance and subsequently insurance companies to insure. Thus, the plight of these areas is dependent on effective fiscal policy and a strong national welfare system to mitigate risks associated with climate change.
In the case of the South East Asian region, particularly in coastal areas and islands, the ‘no-go zones’ will have a profound effect on human security as inhabitants seek protection and welfare support. From this it can be suggested that environmental peril may be grounds on which seek and be granted asylum. This may lead to new migration trends and subsequently strain inter-regional relations, immigration policies and welfares systems as well as setting precedents for future ‘no-go zones’ and other un-protected areas.
The economic paradigms dominating the global must be considered in relation to the interests of human securities by examining the re-insurance market and the implications for humanitarian issues in the South East Asian region and subsequent international policy development to cater for social developments.
Thirty years on, what is the Montreal Protocol doing to protect the ozone?
The Montreal Protocol to protect the Earth’s ozone layer is to date the only United Nations environmental agreement to be ratified by every country in the world. It is also one of the most successful. With the parties to the Protocol having phased out 98 per cent of their ozone-depleting substances, they saved an estimated two million people from skin cancer every year.
Following the thirty-first meeting of the parties in Rome during 4–8 November, Stephanie Haysmith, the communications officer for the Ozone Secretariat, explained why the Montreal Protocol has been so successful and what lies ahead for the treaty.
The 2019 ozone hole is the smallest on record since its discovery. How does the ozone repair and how long will it take?
The Montreal Protocol has been successful in reducing ozone-depleting substances and reactive chlorine and bromine in the stratosphere. As a result, the ozone layer is showing the first signs of recovery. It is expected that the ozone layer will return to pre-1980s levels by the middle of the century and the Antarctic ozone hole by around 2060s. This is because once released, ozone-depleting substances stay in the atmosphere for many years and continue to cause damage. The 2019 hole is indeed the smallest since recording of its size began in 1982 but the ozone is also influenced by temperature shifts and dynamics in the atmosphere through climate change. In 2019, the stratosphere was particularly warm during the Antarctic winter and spring.
The Kigali Amendment, which came into force January 2019, requires countries to limit hydrofluorocarbons in refrigerators and air-conditioners by more than 80 percent. Yet, there is a growing demand for cooling. How can the two needs be met?
While there is a growing global demand for cooling systems for personal well-being and in the commercial sector, improving energy efficiency with low or zero global-warming-potential will be needed to meet needs while minimizing adverse impacts on climate and environment. Research and development have kept pace: equipment design has changed and improved with the ozone-depleting substances phase-out.
At the Rome meeting, parties were made aware of an unexpected increase in global emissions of trichlorofluoromethane, or CFC-11. Why is that, and what is being planned to address it?
The issue of unexpected emissions of CFC-11 was brought to the attention of the parties in 2018. Global emissions of CFC-11 had increased in the period after 2012. This unexpected trend suggests that there is illegal production and consumption of CFC-11. The exact sources of these emissions have yet to be found. The parties take this very seriously and a decision was made at the MOP30 [30th Meeting of the Parties to the Montreal Protocol] to cooperate in further scientific research. In addition, the parties will assess the mechanisms of monitoring for the Montreal Protocol and the Multilateral Fund.
What is meant by “a sustainable cold chain” and how does it reduce food loss?
A cold chain is a connected set of temperature-controlled facilities (pack houses, cold stores, refrigerated transportation, etc.) that ensures perishable foods maintain their freshness and quality while in transit. Access to cold chain allows local producers to link with high-value markets locally, nationally and internationally. By enabling perishable food commodities to be stored and transported in a temperature-controlled environment not only ensures quality and safety, but reduces overall food loss, while improving economic gains and increasing sustainability.
From an environmental perspective, it is important that increasing demand for cold chain is sustainable with increased use of green fuels, energy efficiency and low or zero global warming potential technologies.
What do you hope the Montreal Protocol will inspire?
The Montreal Protocol is one of the world’s most successful environmental treaties and since its adoption, it has encouraged countries to commit to phasing out the production and consumption of ozone-depleting substances. The parties to the Protocol, on realizing that the alternatives, known as hydrofluorocarbons, are potent greenhouse gases contributing to global warming, agreed to address this. After protracted discussions, in 2016 the parties adopted the Kigali Amendment. The global partnership, stakeholder involvement and overall commitment of the countries lent to the success of the ozone protection regime. A successful hydrofluorocarbon phasedown is expected to avoid up to 0.4°C of global temperature rise by 2100, while continuing to protect the ozone layer.
Consequences of U.S. formal exit from Paris climate pact: More isolation globally
The U.S. has formally begun to exit the Paris climate agreement. Regardless of whether or not the Paris Agreement is legally binding, the U.S. has committed to cut 26-28% of its greenhouse gas emissions by 2025 from 2005 levels, and donate three billion dollars to poor countries by 2020.
The U.S. is now the world’s second-largest emitter of greenhouse gases after China. In other words, U.S. greenhouse gas emissions in 2015 were about 7000 million metric tones, which is more than total emissions of the entire EU countries. However, the U.S. president claimed that he has decided to pull his country out of the Paris climate pact because his job is to “protect America and its citizens”.
Commenting on the reason for withdrawing from the agreement, the U.S. president said that the pact is favorable for other countries not the United States, because it puts the country at a very big economic disadvantage. Trump also presented statistics showing that implementation of the agreement for the U.S. will result in losing 2.7 million job opportunities by 2025 as well as 440,000 industrial opportunities inside the country. The president added that this is not what the U.S. needed. This issue is not acceptable to Trump that China can continue to emit greenhouse gas for another 13 years, and India is able to continue its greenhouse gas emissions till 2020, while receiving billions of dollars.
The U.S. president also complains that his country has already donated about one billion dollar to Green Climate Fund, which is founded to help developing countries, while no other country has spent such a large sum in this field.
Trump, despite his decision to exit the Paris Agreement, has announced that he is ready to “begin negotiations to reenter either the Paris Accord or a really entirely new transaction on terms that are fair to the United States, its businesses, its workers, its people, its taxpayers”. He also said that if they reach an accord, that will be great and if they do not, that will be fine.
Consequences of U.S. withdrawal
It should be noted that the withdrawal from the Paris climate accord by the U.S. is not its first unconventional action toward valid international documents. After coming to the White House, in one of his first moves, Trump ordered to pull the country out of the Trans-Pacific Partnership (TPP) that was signed in 2016. The TPP is the greatest trade agreement in the world, which was signed between 12 countries around the Pacific Ocean with the exception of China, and aimed to remove trade barriers to the countries that signed the agreement.
However, the Paris Agreement is of particular importance for the current generation and the world’s future in terms of environmental and international rights. Obviously, legal and political consequences of the Paris accord is more serious than those of the TPP. The following is the summary of the effects of the U.S. withdrawal from the Paris climate pact:
1. U.S. political and legal isolation: the U.S. will be seriously isolated if it withdraws from the Paris accord, because besides Europeans, countries like Canada, Russia, and Asian countries such as China and Japan have signed the agreement. German Chancellor Angela Merkel and the Chinese president reaffirmed that they will be committed to the pact even after the U.S. withdrawal.
Jean-Claude Juncker, the president of the European Commission, at a meeting in Berlin, described the U.S. withdrawal as a completely wrong move. Juncker said that the U.S. cannot exit the agreement just like that. He added that Trump says he will exit the Paris climate pact because he is not well aware of this pact. This is while, he said, in 2015, about 200 countries signed an accord in 2015 in Paris, based on which they were committed to keep the increase in global average temperature to well below 2 °C to prevent global warming.
2. Lack of states’ trust on the U.S. to reach an agreement on other issues: this move by Trump shows the U.S. non-compliance with international agreements that could disturb its prestige and position in the world. The move also will cause other Western partners, especially Europeans, lose their trust of the United States. Following the U.S. withdrawal from the agreement, other countries will hesitate to cooperate and sign contract with the White House on other issues.
3. Distrust of environmental rights: one of the important issues in legal subjects is environmental right, which is being taken into account at national and international level. The U.S. withdrawal from the pact means disregard to international documents related to environmental rights. This approach can be a serious threat to plans to control global warming. Furthermore, the approach indicates that the world’s second largest polluter does not pay much attention to environmental protection, which has been one of most important challenges for environmental rights in recent decades.
From our partner Tehran Times
Climate Risks: Wildfires, Glacier Melt, Coastal Flooding … A Beautiful Antelope
California wildfires are again in the news as the Kincade Fire now raging risks 50,000 people, who have been evacuated. It might come as a surprise but there have been 41,074 wildfires compared to 47,853 in 2018 for the first nine months of the year. Blame the downslope Santa Ana winds for fanning them. Fires can occur naturally through lightning strikes but these days some 90 percent are due to human carelessness: discarded cigarettes, unquenched campfires and the like, all exacerbated by a warming climate. Killing 85 people, the deadliest wildfire in the state’s history seemed to have been caused by Pacific Gas and Electric power lines (although it is still under investigation), and they are suspected in the present Kincade Fire. Wildfires do clear brush — 4.4 million acres burned off this year — ensuring a worse fire will not occur in the future.
As can be expected, such fires also place property at risk. California, Texas and Colorado have the highest numbers of properties at risk, while Montana and Idaho are tops in percentage terms; in Montana 29 percent and in Idaho 26 percent of properties are in the danger zone.
If the west is prone to wildfires, the east has an opposite problem: flooding. Sea levels are rising. The Greenland ice sheet holding enough water to raise the water line by 7 meters is melting. Scientists estimate two-thirds of the ice loss is due to glacier calving as chunks of ice detach from the 300 odd outlet glaciers that end in the fjords. As reported in Science magazine recently, (October 11, 2019), Helheim, a major glacier responsible for 4 percent of Greenland’s annual ice loss is being observed by a team headed by Fiamma Straneo of the Scripps Institution.
In severe retreat since 2014, the glacier has reduced “by more than 100 meters, leaving a tell-tale ring on the rock around the fjord.” This summer its water temperature is 0.2C above the previous high in a relentless rise. Also the data collected will improve mathematical modeling to predict future consequences.
Coastal flooding on the East Coast has been noted by the New York Times (October 8, 2019) in a feature article, As Sea Levels Rise, So Do Ghost Forests. Trees in coastal areas are dying off due to frequent total incursions of saltwater.
An excellent estimate of coastal flooding on the East and Gulf coasts, Encroaching Tides, was prepared by the Union of Concerned Scientists a few years ago. Sober reading, it forecasts coastal innundation over the next three decades. It talks about adaptation to the new norms, the responsibility of Municipalities, States and the Federal Government, sea walls, economic consequences, and a retreat from heavily impacted areas. Is anybody listening, and when they called for reducing emissions was the US listening?
When more than 190 countries signed up to almost all of the rulebook buttressing the 2015 Paris Agreement, it made the 24th International Climate Conference in Katowice, Poland (Dec 2018) a major success. This December the 25th International Climate Conference will convene in Santiago, Chile. A primary issue before it is how to avoid double counting i.e. counting the same emission reduction more than once. Countries have so far failed to reach common ground on how to avoid it despite the threat to carbon markets underpinning the Paris Agreement. Is bashing heads together in Santiago one answer?
Meanwhile on the top of the world, inhabiting the Tibet plateau, the beautiful and majestic chiru or Tibetan antelope, once in trouble from excessive poaching and then recovering, is at risk again. This time it is due to climate change. It has caused excessive melt and a burst natural dam that used to surround Lake Zonag right beside their calving site.
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