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New Climate Change Report Highlights Risk Management Strategies

Global Warming

This week, a new report from the United Nations’ Intergovernmental Panel on Climate Change summarized the ways climate change is already impacting individuals and ecosystems worldwide and strongly cautioned that conditions are getting worse. Focusing on impacts, adaptation and vulnerability, the panel’s latest work offers insight on economic loss and prospective supply chain interruptions that should be of particular note for risk managers—and repeatedly highlights principles of the discipline as critical approaches going forward.

Key risks the report identified with high confidence, span sectors and regions include:

i. Risk of death, injury, ill-health, or disrupted livelihoods in low-lying coastal zones and small island developing states and other small islands, due to storm surges, coastal flooding, and sea-level rise.

ii. Risk of severe ill-health and disrupted livelihoods for large urban populations due to inland flooding in some regions.

iii. Systemic risks due to extreme weather events leading to breakdown of infrastructure networks and critical services such as electricity, water supply, and health and emergency services.

iv. Risk of mortality and morbidity during periods of extreme heat, particularly for vulnerable urban populations and those working outdoors in urban or rural areas.

v. Risk of food insecurity and the breakdown of food systems linked to warming, drought, flooding, and precipitation variability and extremes, particularly for poorer populations in urban and rural settings.

vi. Risk of loss of rural livelihoods and income due to insufficient access to drinking and irrigation water and reduced agricultural productivity, particularly for farmers and pastoralists with minimal capital in semi-arid regions.

vii. Risk of loss of marine and coastal ecosystems, biodiversity, and the ecosystem goods, functions, and services they provide for coastal livelihoods, especially for fishing communities in the tropics and the Arctic.

viii. Risk of loss of terrestrial and inland water ecosystems, biodiversity, and the ecosystem goods, functions, and services they provide for livelihoods.

The report highlights more sector-specific risks, and one table even highlight the panel’s perception of the role of risk management in the future of climate change policy and planning:

IPCC Chart

On the whole, the report lays out many familiar risk management approaches and how they can be best applied to evaluating the risks of climate change and how to mitigate them. Perhaps the environment is warming to risk-informed decision-making as well.

New Forecasting Method Predicts 75% Chance of El Nino in 2014

There is a 75% chance of an El Niño event in 2014, according to an early warning report published in Proceedings of the National Academy of Sciences (PNAS). The researchers used a new method that uses network analysis to predict weather systems up to a year ahead, instead of the usual six-month maximum of other approaches. The model successfully predicted the absence of El Niño in 2012 and 2013.

El Niño events are characterized by a warmer Pacific Ocean, which results in a disruption to the ocean-atmosphere system. This can lead to warmer temperatures worldwide, droughts in Australia and Southeast Asia, and heavy rain and flooding in parts of the U.S. and South America. If such an event occurred toward the end of 2014, the increased temperatures and drought conditions could persist through 2015.

The researchers suggested that their work might help farmers and government agencies by giving them more time to prepare and to consider investing in flood- or drought-resistant crops.

“Farmers might find it worthwhile to invest in drought- or flood-resistant varieties of crops,” Josef Ludescher and Armin Bunde told Businessweek. “A strong El Niño event in late 2014 can make 2015 a record year for global temperatures.”

The current highest record global temperatures date back to 1998, during the last strong El Niño. Given the continued increases in baseline temperature around the world, an El Niño event this year could lead to the record-breaking heat.

Last week, the U.S. Climate Prediction Center issued a similar warning. While the forecasters expect neutral conditions through the spring, a change in temperatures may “portend warming in the coming months.

El Nino Phenomenon

Supertyphoon Haiyan Devastates Philippines

Supertyphoon Haiyan strikes the Philippines

Supertyphoon Haiyan hit the Philippines on Friday, leaving at least 10,000 residents dead and hundreds of thousands without reliable food, shelter or water. One of the strongest storms ever recorded, Haiyan’s winds surpassed 140 miles per hour, bringing record storm surges. The full extent of the damage remains uncertain, with communication and transportation severely restricted.

The World Bank has called the Philippines one of the most hazard-prone countries in the world. Closed roads and airports restricted aid efforts after Supertyphoon Haiyan, and communication failures posed some of the greatest challenges to both assessing and recovering from damage.

“Under normal circumstances, even in a typhoon, you’d have some local infrastructure up and some businesses with which you can contract,” Praveen Agrawal, the World Food Program’s Philippines representative and country director, told the New York Times. “Being as strong as it was, it was very much like a tsunami. It wiped out everything. It’s like starting from scratch” in terms of delivering the aid, he said.

The United Nations has set aside over $300 million to help with the country’s recovery from Haiyan over the next six months, and three dozen individual nations and international organizations have pledged financial and humanitarian assistance. The United States recalled thousands of sailors from shore leave back to the USS George Washington, a massive aircraft carrier currently docked in Hong Kong, to use its 80 aircraft to help deliver supplies and evacuate victims in the Philippines’ hardest-hit islands.

Yet with the broad scope of damage to critical infrastructure, the process has been slow. In the major city of Tacloban, for example, the traffic control tower at one of the country’s biggest airports was destroyed, forcing all aircraft to land by sight, further slowing distribution of food and water. Officials opened smaller airstrips, focusing on safely reopening transportation routes as the hundreds of thousands of evacuees continue to face extreme water shortage. This shortage further compounds the dangers authorities face in recovery, as health officials grow more concerned about water-borne diseases. Most notably, the lack of clean drinking and bathing water in crowded evacuation centers brings risk of diarrhea, leptospirosis and dengue.

Officials are looking forward while managing the catastrophic fallout. According to the Wall Street Journal:

Finance Secretary Cesar Purisima acknowledged that the destruction wrought by the disaster on an area that contributes 12.5% to gross domestic product could shave off as much as a full percentage point to economic growth next year, when the government targets GDP expansion of at least 6.5%. He is hopeful that the adverse effect on growth will be cushioned, if not offset, by the reconstruction spending.

“From a fiscal standpoint, we do have fiscal space to spend for reconstruction. The estimates are preliminary, but we need to invest significantly on infrastructure,” Mr. Purisima said.

The New York Times reported:

HSBC Global Research said that the typhoon probably destroyed half the sugar cane production areas in Leyte Province, and that all told, 3.5 percent of the nation’s sugar cane output was probably lost. It also warned of inflationary shocks to the Philippine economy in the coming months, as supply chains are disrupted.

But given the general health of the Philippine economy and the fact that the typhoon affected geographic areas and sectors like agriculture that are not major drivers of the nation’s output, HSBC said, “The economic impact will be limited.”

Citi Research estimated that infrastructure damage will probably run into billions of pesos, exceeding $70 million.

In Warsaw on Monday, some delegates at United Nations talks on a global climate treaty suggested that global warming was responsible for making Haiyan such a devastating storm. Naderev Saño, the chief representative of the Philippines at the conference, told the New York Times, “What my country is going through as a result of this extreme climate event is madness; the climate crisis is madness.”

Scientists cannot be certain of the overall impact of climate change on severe weather like hurricanes and typhoons, but have noted that more powerful storms will continue as the climate changes. With winds of at least 140 miles an hour, Typhoon Haiyan is considered one of the strongest storms to make landfall. “As you warm the climate, you basically raise the speed limit on hurricanes,” said M.I.T. atmospheric scientist Kerry A. Emanuel.

The powerful storm surges recorded are also likely part of a new reality in major storms. “When you strip everything else away, we’re seeing a general rise in sea level,” James P. Kossin, atmospheric scientist at the National Climatic Data Center, told the Times. “There’s no question that storm surge is going to be compounded.”

Hurricane Sandy Rebuilding Task Force Releases Recommendations

Hurricane Sandy damage to New Jersey boardwalk

President Obama’s Hurricane Sandy Rebuilding Task Force released their findings yesterday, sharing 69 recommendations to repair existing damage and strengthen infrastructure ahead of future natural disasters.

The task force encouraged an emphasis on new construction over simple repair, citing the impact of climate change on severe weather events.

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“More than ever, it is critical that when we build for the future, we do so in a way that makes communities more resilient to emerging challenges such as rising sea levels, extreme heat, and more frequent and intense storms,” the report said. Construction designed for increasingly dangerous storms, infrastructure strengthened to prevent power failure and fuel shortage, and a cellular service system that can subsist during disasters are all critical investments to prevent future loss.

Recommendations included streamlining federal agencies’ review processes for reconstruction projects, revising federal mortgage policies so homeowners can get insurance checks faster, and making greater use of natural barriers like wetlands and sand dunes.

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The team also said that planners need better tools to evaluate and quantify long-term benefits of future projects along the shoreline, but did not detail what would be best ecologically and economically.

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According to USA Today, Sen. Charles Schumer (D-N.Y.) said the Sandy task force report shows that “we have much work to do hardening our energy, telecommunications and transportation infrastructure,” and that “the federal government must be a proactive partner with local governments and the private sector.”

Some of the task force’s suggestions have already been put into place. As the AP reported, this includes the creation of new Federal Flood Reduction Standard for infrastructure projects built with government funds and promotion of the Sea Level Rise Tool, which will help builders and engineers predict where flooding might occur in the future.

The government has closed over 99.5% of over 143,000 National Flood Insurance Program claims related to Hurricane Sandy and paid out more than $7.8 billion to policyholders, according to the task force report. The federal government should support local efforts to mitigate future risk by funding local disaster recovery manager positions and encouraging homeowners to take steps to reduce the risk of future damage, which will also make rising flood insurance premiums more affordable, the report said.

The team has also launched Rebuild by Design, “a competition that will attract world-class talent to develop actionable plans that will make the Sandy-impacted region more resilient.”