Sunny climate stormy climate | Weekly digest #60

The war in Ukraine is fuelling more forest fires, air quality may dictate health insurance prices in India and climate risk has now made it to the tools wall street uses!

Hello folks!

Apologies for the delay in this week’s edition. I was tied up with a few things at home and missed our regular Wednesday morning date.

As I shared last week, this newsletter is now a Youtube show. I am pleased to announce “The Climate Brief”, a show designed to demystify climate news for everyone who cares about the planet but find traditional coverage too technical or disconnected in the form of short <10 min videos.

Please check out this piece on how Climate change is coming for your filter coffee!

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1. The war in Ukraine is fuelling more forest fires!

What are we talking about?

• A study released on the third anniversary of the war in Ukraine has revealed that the war and its aftermath have been responsible for nearly 230 million tonnes of greenhouse gas emissions in the last 3 years. But where is all this coming from?
• Well, 36% of it is directly from warfare—tanks, warplanes, fortification construction, and exploding ordnance.
• Another 27% comes from rebuilding what’s been destroyed—damaged buildings, shattered infrastructure.
• And the third biggest contributor? Wildfires. Nearly 46 million tonnes of greenhouse gases have been released from war-driven landscape fires alone.

But is the war really causing forest fires?

• Climate change and war together have created the perfect conditions for disaster. The summer of 2024 was drier than usual in Ukraine. But these dry conditions acted as fuel for fires sparked by the ongoing conflict.
• In just one year, 92,100 hectares of Ukrainian forests went up in flames. That’s 20 to 25 times more than Ukraine’s pre-war average.
• Most fires happened near the front lines and in border areas, where battles raged on. Explosions, shelling, and missile strikes can ignite vegetation instantly.
• Further, it’s too dangerous for firefighters to go in. So, these fires spread uncontrolled, growing larger, more intense, and more destructive.

Why does this matter?

• They are not just releasing tons of emissions right now, but they’re also destroying Ukraine’s forests, that serve as massive carbon sinks and have stored carbon for centuries. Recovering them could take anywhere from 40 to 60 years.

Sources for further reading

• Climate damage caused by russian war in Ukraine in three years – the key numbers

2. Air quality may make health insurance more expensive in Delhi

What are we talking about?

• In the past two years, Delhi has seen an 8.3% rise in respiratory-related health claims. Cases of asthma, chronic obstructive pulmonary disease (COPD), and heart disease have increased significantly.
• As a result, health insurers now considering a 10-15% hike in health premium for Delhi. Other cities could follow suit.
• This will of course need to be approved by the IRDAI before it is implemented.

Why does this matter?

• We have known that air quality in Delhi is bad, but this is just another indicator of how bad and what all it can impact.
• If implemented, this would mark the first time in India that air pollution is directly tied to health insurance pricing. For many, health insurance is already expensive. If premiums rise, it could become unaffordable for those who need it most.

Sources for further reading

• India insurers look to hike health premiums as pollution stings (Reuters)

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3. Climate risk is now on Wall street’s radar

What are we talking about?

• USA’s finance media giant Bloomberg has launched MARS Climate—a tool designed to help investors evaluate the financial impact of climate change on their portfolios.
• This is a part of MARS ( Multi-Asset Risk Management suite), a tool used by over 900 firms globally.

Why is this happening?

• A study by Swiss Re estimates that economic damages caused by natural catastrophes have doubled in real terms over the past two decades, reaching $280bn globally in 2023.
• As a consequence, regulators and central banks across the globe are increasingly asking financial firms to evaluate their exposure to climate risks.

Why does this matter?

• This is an indication of the fact that financial firms are looking to better understand climate risk.
• As the financial industry and the markets better understand this, it could help drive more urgent climate action.

Sources for further reading

• Bloomberg Launches Climate Risk Management Solution