20 SEP 2017
Hurricanes and Monsoons Devastating impact across two continents
Hurricane season is at its peak, but that hasn’t made the dramatic pictures of Hurricane Harvey and Irma any easier to digest. Hurricane Harvey was the first devastating cyclone to reach the USA at the end of August, slamming into Texas and the Gulf of Mexico. Hot on its heels is the current category-four storm, Irma, raging across Florida, Miami and parts of the Caribbean.
In tandem with the recent hurricanes coming in from the Atlantic Ocean, monsoon rain has stuck northern parts of India, Bangladesh and Nepal, displacing tens of millions, with the International Federation of Red Cross and Red Crescent Societies (IFRC) estimating that at least 1,200 have subsequently lost their lives.
Meteorological experts have calculated that almost a week's worth of rainfall normally experienced during the summer season fell across parts of Bangladesh in the space of a few hours.
These recent events are examples of freak weather patterns and extreme storms impacting various regions across the globe. All have been catastrophic for the populations affected, but what have been the wider economical and societal affects?
Hurricane Harvey, USA
Harvey was the first major hurricane to make landfall in the USA, since Wilma in 2005. What hasn’t gone unnoticed is the fact that the storm struck at the heart of America's oil and gas industry, at one stage knocking a third of US production offline, forcing the closure of multiple refineries around the Gulf Coast and disrupting a number of major fuel pipelines.
Petrol prices increased in anticipation of the storm, with shortages reported at gas stations in Texas, and as far away as the UK.
Goldman Sachs, the multinational finance company, estimates that the hurricane is anticipated to become one of the costliest disasters in postwar US history. Sachs has reported that up to one percentage point of third-quarter GDP will be deducted from US economic growth as a result of the storm.
Monsoon floods, South East Asia
Villagers have described the recent rains across parts of Northern India, Bangladesh and Nepal as the ‘worst in living memory’.
UNICEF has estimated 31 million people have been affected by the floods, with a further eight million affected in Bangladesh and over one million in Nepal. Aid agencies have also stated that out of the 1,200 plus who have lost their lives, 30 to 40 per cent are children.
Such flooding is catastrophic for rural areas around the world. Whilst these areas are used to seasonal flooding, the impact of recent events is unprecedented, with cattle, homes, crops and food supplies wiped out in many cases. What’s more, reconstruction efforts invariably take longer in developing countries than in wealthier economies.
Hurricane Irma, USA
Making landfall on the first weekend of September, Irma has steadily caused destruction across the Caribbean, Florida and Miami. At the time of writing, over 68 people had lost their lives.
In Florida and the Gulf Coast, where winds reached over 135 mph, coastal waters rose up to 10 to 15 feet above normally dry land, inundating homes, businesses and roads. Less than one week after the storm hit, authorities in Florida reported a $250 million spend against various recovery efforts.
Elsewhere, several Caribbean islands have been devastated, with insurance experts already estimating the cost at more than US$10bn (AED 36bn). The island of St Martin had more than 60 per cent of its homes ripped apart, with no electricity, gas or drinking water.
Climate change to blame
Scientists and climate experts have widely attributed the severity of the recent storms to climate change, arguing that the warming of both the ocean’s surface water and the world’s atmosphere are exacerbating extreme weather.
Climate change and resource scarcity will be issues in focus at Abu Dhabi Sustainability Week 2018. In January, we’ll be inviting world leaders, global experts and business leaders to further examine climate change and its impact on world communities, as well as the practical steps that can be taken to mitigate the effects of our warming planet.
15 NOV 2017
NEOM The Kingdom of Saudi Arabias $500 billion City of the Future
NEOM will be a similar size to Belgium and have more robots than humans. The recently proposed $500 billion sustainable city in north-west Saudi Arabia was announced by the Kingdom’s Crown Prince Mohammed bin Salman.
The 26,500-square kilometre zone, known as NEOM (short for “new future”) will be fully powered by renewable energy, and become the country’s hub for industry, technology and entertainment.
NEOM is part of Saudi Arabia’s 2030 vision to diversify its economy and transform its energy generation. As part of its plans, the country aims to generate around 9,500 megawatts of electricity using solar and wind in the next decade.
The first phase of NEOM is due to be finished by 2025, with the city expected to use the latest technology (“passenger drones”, free online education and robots to do repetitive and arduous tasks) and have the highest possible environmental standards (carbon-free homes).
The project will have a significant impact – attracting private sector investment, supporting skills development and job creation, and providing a platform to develop partnerships with its neighbouring countries.
NEOM is an exciting project for Saudi Arabia and an important one for the region as it continues to cement itself as a global hub for sustainability.
At Abu Dhabi Sustainability Week, we look forward to hosting a delegation from the Kingdom of Saudi Arabia to discuss renewable energy projects and strategies.
30 OCT 2017
Is it the hour of EV
Major initiatives around the world have been announced to reduce the prevalence of new petrol and diesel cars in the coming years. By 2050, all cars on the road in the U.K. will be required to have zero emissions. By 2040, France intends to end the sale of gas and diesel-powered vehicles. And by 2030, every new car sold in India should be powered by electricity.
Countries from China to the UAE have announced ambitious national goals around sustainable mobility. Several automakers are recognizing this moment as well: most recently, GM declared an “all electric future,” and Volvo is electrifying its entire vehicle line by 2019. Jaguar Land Rover, Daimler, Ford and Toyota are all making significant investments in sustainable mobility.
Just how quickly can we expect our roadways to be fossil fuel free?
The recent declarations are a step in the direction to building more sustainable cities and improving air quality, buy many businesses rely on government targets and incentives to deploy new technologies, as well as shifting consumer behavior. (check out our interview with Hyperloop One’s co-founder and CTO).
This debate will continue at Abu Dhabi Sustainability Week, January 13-20, 2018, including at The Mobility Forum and The Sustainable Transport Expo, where Tony Seba, Author of Clean Disruption of Energy and Transportation will be presenting.
30 OCT 2017
Supporting Saudi Arabias renewable energy ambition 5 pillars businesses must adopt
Ever since the discovery of petroleum in 1938, Saudi Arabia has used oil to grow its economy with billions of dollars generated each day through exports. Nearly 80 years on, the energy landscape is shifting, and the oil rich nation now has an opportunity to become a world leader in clean energy.
Saudi Arabia’s commitment to the Paris Agreement and its Vision 2030 reforms has set the country on a path to energy diversification. After experimenting with solar power in the 1970s, the country has embarked on building a competitive renewable energy sector.
However, no government can make the shift to renewable energy alone, completing this journey also needs the support of the business community. Global businesses are now recognizing the commercial opportunity of tackling climate change, in some cases regardless of the policy landscape, and are taking steps to become more sustainable, including making investments in renewable energy.
Ahead of Abu Dhabi Sustainability Week (ADSW) 2018, we have identified five pillars on which the business sector can help Saudi Arabia build its ambitious renewable energy programme.
Partnerships: It doesn’t matter if you’re a start-up or a multinational conglomerate, realizing a low carbon economy requires the technologies of tomorrow. Developing these solutions and bringing them to market demands knowledge-sharing programmes and public-private partnerships. Such partnerships will fast track the deployment of renewables in Saudi Arabia and support its aims to become an international leader in future energy technologies.
Harness local talent: Besides oil and the desert sun, Saudi Arabia’s people are a vital resource. The kingdom has some of the best engineering, science and business universities in the Middle East, with thousands of students graduating each year. Nurturing this raw talent, as well as existing experts in the petrochemicals industry, will provide the ingredients for developing and deploying renewables in the country.
Energy efficiency: In many countries, improving energy efficiency across the business sector has allowed renewable assets to be maximised. Every business can do its part, but it’s not just about achieving efficiency and becoming more environmentally friendly. It’s also an opportunity for businesses to improve their bottom-line. Across the US and Europe, commercial businesses and heavy industry are embracing smart grid technologies like Demand Side Response (DSR) to improve energy efficiency. DSR automatically adjusts in real-time the energy consumption of equipment, from air conditioning to furnaces, without compromising operational performance. With 70% of Saudi’s electricity consumed for air conditioning during the summer, the adoption of smart technologies by the business sector could be key in reducing peak demand and balancing the country’s electric grid.
Energy storage: As Saudi Arabia works towards its initial target of generating 9.5 gigawatts from renewable energy, businesses are well positioned to deploy energy storage across the electricity network. We all know that wind and solar are intermittent sources of power—the wind doesn’t always blow and the sun doesn’t always shine. But advances in battery technology are allowing clean energy to continue to supply power grids even when the sun has set and the air is still. This is making storage applications for utility-scale renewable energy more attractive for investors. At smaller scales, businesses are using storage to better manage their own energy needs and create new revenue streams.
Invest for the long-term: By supporting the diversification of Saudi Arabia’s energy portfolio, businesses can generate significant ROI, including from R&D, manufacturing, and project development. Building any sector from the ground up is unlikely to deliver instant returns. However, companies like Tesla are demonstrating the benefits of long-term investment. When the company was formed in 2003, Elon Musk and Tesla’s other co-founders outlined a simple mission statement – ‘to accelerate the transition to a sustainable energy future’. Fast forward 15 years and Tesla has overtaken Ford and General Motors in market value.
With the right regulatory framework, entrepreneurial spirit, and innovative solutions, countries like Saudi Arabia can realise their renewable energy ambitions. The path to a renewable energy sector can’t be reached through the adoption of just one technology or business model; it’s going to need a multi-pronged approach with governments and businesses working side by side to achieve a common goal. That’s why each year, ADSW brings together thousands of delegates from around the world to discuss effective strategies for achieving a more sustainable future.
Making long-term commitments to clean energy will create new markets, generate jobs and deliver new investment opportunities. Acting now will ensure businesses are ahead of the clean energy curve while helping to transform Saudi Arabia as a global player in renewable energy.