Storms influenced by human activity
Dubai recently experienced unprecedented downpours in which the annual amount of rainfall dropped in a matter of hours, leading to widespread flooding, structural damage and the shutdown of its busiest airport. There was some speculation that these events were linked to cloud seeding, for which the UAE is famous, but this claim has been refuted by the National Centre for Meteorology (NCM) and opposed by global experts. Mark Howden of the Australian National University and Professor Dim Coumou of the University of Amsterdam attributed the events to natural storm activity amplified by man-made global warming, a trend many experts expect to repeat and become harder to predict. Adding to the unfavourable forecasts are poorly developed drainage plans, which are not such a priority due to the hot climate in the region, and the transformation of cities from arid desert landscapes to modern concrete-dominated cities puts the countries of the Arabian Peninsula at a great disadvantage.
The whole world is affected
The situation in Dubai highlights the need for innovative urban engineering solutions that can adapt to the challenges of climate change while promoting sustainable development practices. Just days before, the same storm system that brought severe storms and flooding also swept through the neighbouring country of Oman, killing around 18 people, according to Aljazeera.com. Such occurrences, however, are not isolated, with cities around the world facing comparable problems. New York, which experienced a similar scenario last year, highlights the vulnerability to disruptions caused by torrential rains and waste, even in longer-term populated areas. Tiago Merques, CEO and founder of the start-up Greenmetrics.AI, explained to CNBC that drainage systems are not adapted to such high flows under current climate change, citing the city of Porto as an example, where even with well-maintained drainage systems, they struggled with flooding due to unusually high volumes of water and debris deposits.
Evolution of the cocoa price over the last 5 years. (Source: investing.com)*
Can't do without change
As cities around the world face the reality of global warming, there is a need to build resilient environments, and the floods in the Gulf only underscore this need. Green infrastructure such as permeable pavements or green roofs, along with efficient waste management, can help with natural absorption or mitigate the environmental impacts of urbanisation. However, without effective action, these manifestations of climate change will continue to multiply.
Olivia Lacenová, principal analyst at Wonderinterest Trading Ltd.
* Past performance is no guarantee of future results.
Start-ups ready to help
In response to these challenges, innovative start-ups and initiatives are emerging with solutions aimed at strengthening resilience to flood situations. The aforementioned Greenmetrics.AI uses LIDAR sensors and data analytics in areas with higher flood incidences to warn about rising water levels and to predict the impacts of rainfall. It also offers omunity advice and works with Portuguese authorities. A similar idea is being explored by Australian start-up called Vapar, which, thanks to its platform and the use of artificial intelligence, enables the inspection and maintenance of pipelines, reducing the risk of failure. It is also helping governments in Australia, New Zealand and the UK. For example, Brazilian company 4 Habitos Para Mudar o Mundo is helping with waste categorisation and appropriate disposal using AI, and is also developing building materials that are strong and porous enough to allow natural water absorption.
Impact on the economy
The economy is exposed to two types of risks in the context of climate change: physical risks (damage to property and infrastructure) and risks associated with the transition to a low-carbon economy. While such a transition offers both a better environment and new jobs, if measures are implemented too quickly and businesses do not have enough time to adapt, it could mean not only the disappearance of firms but also the jobs associated with them and a decline in the value of financial assets. Not to mention the impact on prices for final consumers, as floods, but also droughts, destroy crops, disrupt supply chains and transport systems, which is reflected in prices and the ability of central banks to keep them stable. Financial markets are also affected. Recent examples include the price of cocoa, which after 47 years on the stock exchange has surpassed its all-time highs, breaking the USD 10,000 per tonne mark.* The reason? Problems with cultivation due to severe weather fluctuations, which cause the trees to be attacked by diseases and pests.
