Waste from wealthier nations often ends up in poorer countries such as Pakistan. AP
Waste from wealthier nations often ends up in poorer countries such as Pakistan. AP
Waste from wealthier nations often ends up in poorer countries such as Pakistan. AP
Waste from wealthier nations often ends up in poorer countries such as Pakistan. AP

Climate crisis will force millions to migrate unless we act, says Cop27 report author


Daniel Bardsley
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Latest: Cop27 homepage

Actions such as reductions in greenhouse gas emissions could cut by up to 80 per cent the number of people forced to migrate as a result of climate change, a co-author of a report released at Cop27 said.

Dr Barbora Sedova, a researcher behind 10 New Insights in Climate Science, said migration caused by climate change would put the greatest pressure on low and middle-income countries, which are least able to cope.

Climate change is already causing human migration, and without significant measures to mitigate it, such as reducing the release of greenhouse gases to adapt to it and to support communities affected, migration will grow.

Climate change has the ability to trap people in vulnerable situations
Dr Barbora Sedova,
Potsdam Institute for Climate Impact Research

“My hope is that decision-makers recognise that climate change mitigation is essential to limit the adverse impacts of climate change in the future, to reduce the necessity for people to leave their homes,” said Dr Sedova, of the Potsdam Institute for Climate Impact Research in Germany.

“At the same time they should recognise that to some extent we will see climate change impacts and climate migration. We’ll need to adapt.”

  • A climate activist at the Cop27 summit. EPA
    A climate activist at the Cop27 summit. EPA
  • Activists including 11-year-old Licypriya Kangujam from India (in a pink top) protest against Germany's climate policy at the summit. AP Photo
    Activists including 11-year-old Licypriya Kangujam from India (in a pink top) protest against Germany's climate policy at the summit. AP Photo
  • Fans of South Korean boyband BTS protest over climate change in Sharm El Sheikh. Reuters
    Fans of South Korean boyband BTS protest over climate change in Sharm El Sheikh. Reuters
  • Holding a red banner, activists protest at Cop27. EPA
    Holding a red banner, activists protest at Cop27. EPA
  • BTS fans make their point. Reuters
    BTS fans make their point. Reuters
  • 'The flood is coming,' reads the head-turning message, in French, on the back of a woman's blue gown. AP Photo
    'The flood is coming,' reads the head-turning message, in French, on the back of a woman's blue gown. AP Photo
  • Demonstrators at the global summit shout slogans. AFP
    Demonstrators at the global summit shout slogans. AFP
  • Students from the Pacific Islands stage a climate protest at the summit. AP Photo
    Students from the Pacific Islands stage a climate protest at the summit. AP Photo
  • Activists embrace in Sharm El Sheikh. Reuters
    Activists embrace in Sharm El Sheikh. Reuters
  • Banners and shouting demonstrators outside the conference centre. AFP
    Banners and shouting demonstrators outside the conference centre. AFP
  • These protesters at Cop27 are wearing white to support political prisoners and environmental activists. AP Photo
    These protesters at Cop27 are wearing white to support political prisoners and environmental activists. AP Photo
  • Vegans - one dressed as a cow - protest against the killing of animals for food, in Sharm El Sheikh. EPA
    Vegans - one dressed as a cow - protest against the killing of animals for food, in Sharm El Sheikh. EPA

Worst-hit nations

The report says that in countries such as Cambodia, Nicaragua, Peru, Uganda, Vietnam and Bangladesh, a lack of money has meant that people have been unable to leave their communities even after experiencing extreme climate events.

“In this particular context [of lack of wealth], climate change has the ability to trap people in vulnerable situations,” she said, adding that worse health may also make it impossible for people to adapt and move.

“In rural sub-Saharan Africa, we see strong evidence of climate change-related immobility. The poorest are unable to move and adapt to the climate change impacts.”

In some countries, such as India, both effects — climate change forcing certain people to leave their communities, while trapping others who may wish to migrate — are seen.

The report says 1.6 billion people already live in “vulnerability hotspots”, which are areas at-risk from climate change hazards. By 2050, the number is set to double.

In highlighting the stresses created by climate migration, it calls for anticipatory measures to assist climate-related mobility and to minimise displacement.

It also warns that measures to cope with climate change will not be able to keep up with the most severe effects.

The report is produced annually by environmental research programme Future Earth, a network of scientists and institutions called The Earth League, and a World Meteorological Organisation and the World Climate Research Programme.

Dr Sedova highlighted a separate World Bank study, released last year, that suggested that up to 216 million people could be forced from their homes as a result of the slow-onset effects of climate change, such as gradual changes in temperature and rainfall. Extreme weather events will have an impact on top of this.

That report also indicated that the numbers forced to leave because of climate change could be reduced by four-fifths if more effort is made to mitigate climate change, to adapt to it and to promote inclusive economic development, such as helping poorer nations to develop.

“The extent of climate change mobility will strongly depend on the climate change scenario,” Dr Sedova said. "[In] this study from the World Bank, under the most pessimistic scenario, you can see a tremendous number, up to 216 million.

“But the numbers can be reduced through climate action. Both mitigation and adaptation will determine the extent of climate migration.”

Middle East and drought

Sheep are gathered in their enclosure in the countryside of Syria's northeastern Hasakeh province in May 28, 2022. Syria is among the countries most vulnerable and poorly prepared for climate change. AFP
Sheep are gathered in their enclosure in the countryside of Syria's northeastern Hasakeh province in May 28, 2022. Syria is among the countries most vulnerable and poorly prepared for climate change. AFP

The Middle East is among the regions where climate change has already caused migration. Dr Sedova said in Syria severe drought caused migration to urban areas before civil war broke out in 2011.

“This is an interesting example of how climate impacts can drive mobility, and this climate mobility can add pressures to urban centres that then face a lot of conflict,” she said.

“This climate mobility was not the root cause [of the conflict], but an additional pressure.”

Low and middle-income nations in particular face “massive policy challenges” from having to accommodate and integrate climate change migrants who flee to urban areas.

“The global north [wealthier nations] also experiences climate change, but they have much more resources to adapt, so migration is often not necessary,” Dr Sedova said.

Climate change has already done “irreversible damage”, Dr Sedova said, so support for “loss and damage”, which has been a focus of Cop27 discussions, in terms of wealthier nations supporting poorer countries that are facing harm from climate change, is important.

The lowdown

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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.”

Updated: November 16, 2022, 7:00 AM