The ruins of homes along the Gulf of Mexico after Hurricane Milton passed through the area in Manasota Key, Florida. Getty Images
The ruins of homes along the Gulf of Mexico after Hurricane Milton passed through the area in Manasota Key, Florida. Getty Images
The ruins of homes along the Gulf of Mexico after Hurricane Milton passed through the area in Manasota Key, Florida. Getty Images
The ruins of homes along the Gulf of Mexico after Hurricane Milton passed through the area in Manasota Key, Florida. Getty Images


Why the West must prepare for climate migration


  • English
  • Arabic

October 14, 2024

The idea of climate migration in the western media conjures images of desperate Africans straggling across the desert, or Bangladeshis sitting on their rooftops amid flooded fields. But as hurricanes and wildfires tear through apparently safe locales, climate migration is a feature of life in the US and Europe, too – even if the West doesn’t realise it yet.

One of the great trends of 20th century American life was the population move to the Sun Belt states such as California, Arizona and Florida, aided by widespread air conditioning, from the drought-stricken Mid-West in the 1930s, and the decaying – and colder – northern rust-belt from the 1970s. John Steinbeck’s classic novel The Grapes of Wrath follows one family of “Okies” (migrant farm workers) fleeing their parched farm in Oklahoma’s Dust-Bowl for a better life in California – where they encounter prejudice and exploitation.

Two major hurricanes have just struck the US. Milton hit low-lying Florida, which is no stranger to such storms. Helene, though, reached mountainous areas of inland North Carolina, usually thought to be safe, bringing catastrophic flooding and landslides and killing at least 227 people.

Although the science is complex and debated, World Weather Attribution found that global warming made Milton’s winds 10 per cent more powerful, and the hurricane 20 to 30 per cent rainier, while Helene was about 10 per cent more intense on these measures. This is the general pattern to be expected from increased evaporation from hotter tropical seas where hurricanes are born. There will be more powerful storms, and they will intensify rapidly.

The effect of the hurricanes is magnified by sea-level rise because of expanding warmer seas and melting glaciers. The storm surge they bring approaches coastlines already retreating. The US East and Gulf Coasts are undergoing an above-average relative sea-level rise because of post-glacial subsidence, the damming of sediment-bearing rivers, and the extraction of subsurface water and oil.

The effects of global warming are being felt across North America and Europe. Heatwaves are hitting more northerly cities that are not equipped for them. Traditional tourist areas in southern Europe are becoming unbearably hot in summer.

A long drought in California might return as the Pacific shifts back to La Niña conditions this year. Wildfires burn homes, cut off power, and bring choking smoke to the south-western US, New York and other areas adjacent to Canadian forests, Greece and Australia. Heavy rains strain dams and overtop rivers across central Europe, France, England and Wales, while April’s floods in Dubai and Sharjah are fresh in the memory.

While Europe mostly worries about rising heat, it’s also possible that changes in oceanic circulation could plunge it into a deep freeze. That would make parts of the continent uninhabitable and decimate agriculture.

While Europe and the US have become increasingly hostile to immigration, climate change impact – such as storms and droughts forcing farmers off the land in Central America, and the effect of water shortages across weak states in the Middle East and Sahel – also influences migration patterns. A World Bank paper found that more than 200 million people in poorer countries might migrate by 2050 because of climate change.

These climatic troubles are particularly damaging because they occur in low-income, poorly-governed or oppressive states that cannot deal with them effectively. Wealthier countries may think they are relatively immune.

But the costs of climate-related natural disasters are huge – $225 billion to $250 billion for Hurricane Helene, according to estimates from forecaster AccuWeather. Most of this is not covered by insurance. Uninsured properties can’t easily be sold or mortgaged.

That is one powerful force for climate migration within the nation: properties by the coast or on floodplains will become increasingly impossible to insure, or the budgetary cost of government-backed insurance will become unaffordable. Rich and high-profile neighbourhoods will probably be able to attract government funds while poorer areas are sacrificed.

Wealthy countries can cope with many of the effects of a changing climate through improvements to flood defences, seawalls, dams, air-conditioning, drip irrigation, changing cultivation to less water-hungry plants, better forest management and firefighting. A large part of these costs will be invisible, but will pose an ever-increasing drag on productivity and economic growth.

Migration within the US is relatively straightforward. In the EU and European economic area, it is legally quite easy, but there are barriers of language, culture and personal networks. Brexit Britain has foolishly cut itself off from such flexibility.

But the accelerating flight of large numbers of people will worsen social tensions and have powerful and unpredictable political consequences. Over the past two decades, about 3.2 million people, or nearly 1 per cent of the American population, have already moved to escape flooding, a paper in Nature found. Big states such as California, Texas and Florida report population growth slowing as climatic risks deter residents.

The best approach, of course, is to limit global warming as far as possible. But with at least a rise of 2ºC now a near-certainty, authorities need to plan ahead. Efforts so far are piecemeal and conventional. North Carolina, a swing state in the upcoming US election, even introduced a law in 2011 banning the use of updated estimates of sea-level rise by state agencies in land-use decisions.

Migration within wealthy countries and areas because of climate change is already a reality. Rather than listening to anti-immigration campaigners rallying against hordes of incomers from poorer regions, wealthy countries such as the US and those in Europe need to prepare for their own internally-displaced people. That’s better than the social dislocation and political dysfunction that a new wave of 21st century Okies will bring.

Robin M Mills is chief executive of Qamar Energy, and author of The Myth of the Oil Crisis

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Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EDirect%20Debit%20System%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20Sept%202017%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20UAE%20with%20a%20subsidiary%20in%20the%20UK%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20FinTech%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20Undisclosed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Elaine%20Jones%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%208%3Cbr%3E%3C%2Fp%3E%0A
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
ESSENTIALS

The flights

Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes. 

The trip

From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.

The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Spare

Profile

Company name: Spare

Started: March 2018

Co-founders: Dalal Alrayes and Saurabh Shah

Based: UAE

Sector: FinTech

Investment: Own savings. Going for first round of fund-raising in March 2019

Visit Abu Dhabi culinary team's top Emirati restaurants in Abu Dhabi

Yadoo’s House Restaurant & Cafe

For the karak and Yoodo's house platter with includes eggs, balaleet, khamir and chebab bread.

Golden Dallah

For the cappuccino, luqaimat and aseeda.

Al Mrzab Restaurant

For the shrimp murabian and Kuwaiti options including Kuwaiti machboos with kebab and spicy sauce.

Al Derwaza

For the fish hubul, regag bread, biryani and special seafood soup. 

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%3Cp%3E1.%20Singapore%0D%3Cbr%3E2.%20Switzerland%0D%3Cbr%3E3.%20Denmark%0D%3Cbr%3E4.%20Ireland%0D%3Cbr%3E5.%20Hong%20Kong%0D%3Cbr%3E6.%20Sweden%0D%3Cbr%3E7.%20UAE%0D%3Cbr%3E8.%20Taiwan%0D%3Cbr%3E9.%20Netherlands%0D%3Cbr%3E10.%20Norway%0D%3Cbr%3E%3C%2Fp%3E%0A
BORDERLANDS

Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis

Director: Eli Roth

Rating: 0/5

UAE rugby in numbers

5 - Year sponsorship deal between Hesco and Jebel Ali Dragons

700 - Dubai Hurricanes had more than 700 playing members last season between their mini and youth, men's and women's teams

Dh600,000 - Dubai Exiles' budget for pitch and court hire next season, for their rugby, netball and cricket teams

Dh1.8m - Dubai Hurricanes' overall budget for next season

Dh2.8m - Dubai Exiles’ overall budget for next season

Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.

Green ambitions
  • Trees: 1,500 to be planted, replacing 300 felled ones, with veteran oaks protected
  • Lake: Brown's centrepiece to be cleaned of silt that makes it as shallow as 2.5cm
  • Biodiversity: Bat cave to be added and habitats designed for kingfishers and little grebes
  • Flood risk: Longer grass, deeper lake, restored ponds and absorbent paths all meant to siphon off water 

Arctic Monkeys

Tranquillity Base Hotel Casino (Domino) 

 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: November 21, 2024, 12:27 PM