Connect with us

BUSINESS & ECONOMY

World Ocean Day And Economic Potential Of Oceans

Published

on

Oceans Have Saved Us Now We Have To Save Our Oceans
Spread the love

Is there a correlation between the Covid-19 pandemic and climate change?

Apparently not. The virus is supposed to weaken with high temperatures and – unlike winter months when people stay indoors more (a situation that favours infections) – in the summer people tend to stay more outdoors or in constantly ventilated rooms and therefore be less exposed to viral aggression.

A study by the Massachusetts Institute of Technology shows that a mild climate should inhibit the virus vitality, but the spread of cases in the southern hemisphere shows that this pathogen is more resistant to heat than “traditional” influenza viruses.

Now, with the so-called “Delta variant”, the number of infections seems to be rising throughout Europe, a sign that the virus maintains its aggressiveness even at high temperatures.

In fact, according to many experts and scholars, the pandemic that has caused a global crisis can be related to climate change insofar as the latter is connected to the increase in pollution rates caused by the disproportionate use of non-renewable energy sources (first and foremost, oil and coal).

Air pollution, in turn, causes damage to the respiratory system, especially in the weakest subjects who account for 90% of Covid-19 victims. The said damage can be considered co-responsible for the lethal consequences of the flu syndrome.

In August 2020, the scholars who participated in the Congress on the relationship between “climate, weather and environmental factors and the Covid-19 pandemic”, organized by the World Meteorological Organization (WMO), came to the conclusion that the pandemic “reflects the state of tension between man and nature”.

According to many of the researchers who participated in the WMO Congress, the most severe consequences of the Covid-19 infection occurred in patients exposed more frequently to the air polluted by carbon dioxide.

Although unanimous scientific consensus has not been reached on the possible interrelations between the pandemic and climate change, authoritative studies show that the average rise in global temperatures increases the ability of the virus to spread, also due to the increase in rainfall and the average humidity rate since  the latter factors stimulate virus viability and resistance.

According to the “Fifth Assessment Report” of the (Intergovernmental Panel on Climate Change (IPCC) the average increase in temperature and rainfall has altered the distribution and spread of pathogenic vectors. These factors, connected to the increased mobility of the population and to changes in the habitat of some animal species (such as bats) caused by man, can be considered co-responsible for the speed with which the Covid-19 virus has spread in all continents, particularly in areas where there are higher levels of industrialization and air pollution by CO2.

Due to the impact of the pandemic on industrial production and on the global economy, the pollution rate has, in general, decreased, also because the abrupt slowdown imposed on production and consumption has actually contributed to the decrease of CO2 emissions into the atmosphere which, in China alone, in the first four months of 2020 decreased by 10.3%, while worldwide the decrease was 5.8%.

Now, thanks to the success of the vaccination campaign that in Europe is reaching acceptable levels for collective security, many countries, including Italy, are preparing – with a new productive impetus – the recovery of the economy, disrupted by the pandemic effects. As highlighted in the works of the recent G20 in Venice, this recovery shall start from a new commitment to energy production with renewable sources and with the progressive and marked decrease in the use of polluting sources, such as oil and coal.

As seen above, the pandemic has caused at least one positive side-effect, i.e. the decrease in carbon emissions into the atmosphere. This may be the opportunity for a new “energy renaissance”, destined to last over time and to make production models more consistent with the environment and, as a result, with public health.

The protagonists of this paradigm shift in industrial production will be renewable energy sources, including marine energy and hydrogen.

In August last year, as part of the ambitious development program called “European Green Deal”, the European Union launched a real “Hydrogen Strategy” in which it is stressed that “clean” hydrogen (i.e. the one extracted from water through electrolysis) must be an integral part of the ecological transition envisaged and funded by the “Recovery Plan”, with the aim – in the very short term – to produce, by 2024, 6 GW per year of “green” energy from hydrogen electrolysis.

China is also moving concretely in this direction, thanks not only to the commitment made by President Xi Jinping, also at the G20, to drastically reduce carbon emissions by 2030 in compliance with the Paris Agreement of 2012, but also to the work of the very young Minister, Lu Hao, who heads a Department that includes six previous Ministries and is at the forefront in the strategy of ecological conversion of the entire Chinese production system.

This strategy envisages the widest use of energy produced by wave motion and sea currents. It is in this context that Minister Lu Hao has ordered the creation, in Shenzhen, of the “National Ocean Technology Centre” (NOTC), a centre for the study and development of advanced technologies for the production of “green” energy from tides – abundant and clean energy that can be widely used for hydrogen production. The latter, in fact, requires large amounts of electricity that, when produced with the use of traditional systems, such as oil or coal, does not contribute to improve environmental conditions.

With the use of marine energy to activate the electrolytic cells necessary to “separate” hydrogen from oxygen, a “virtuous” production cycle can be created by extracting hydrogen from water with energy supplied “at zero kilometre” from water itself.

Electrical currents from the sea can be produced with energy converters; with energy extractors from the tides; with thermal converters that exploit the differences in temperature at various depths, as well as with tools that can exploit even the differences in salinity.

With these technology and equipment huge amounts of energy can be extracted without causing any damage to the environment or to sea flora and fauna and CO2 emissions into the atmosphere will be reduced by billions of tons.

This is not science fiction but a tangible reality: every ocean has a stable potential overabundance of energy that can be extracted from waves, currents and tides – energy at lower costs than those of the other renewables.

Even the Mediterranean is to be considered an excellent potential source of marine energy.

In Ravenna ENI has already put into operation the “Inertial Wave Converter”, a wave energy converter designed to extract 50 Gigawatts from the cyclic motion of waves, currents and tides.

Together with Scandinavia, Italy is the European leader in the research and practical application of these technologies and their use in the production of hydrogen through electrolysis, with a pilot project in the Strait of Messina.

Worldwide, with China in the forefront, there are currently over fifty active projects for research and production of clean energy from sea water, part of which is dedicated to the future production of green hydrogen. In short, these projects are all dedicated to rebuild a relationship between man and nature that, far from dreaming of a “pleasurable degrowth”, i.e. a sustainable negative growth, aims to achieve a development model that is consistent with the needs of production, but also with the inescapable need for “turning green”.

We are coming out of a very severe health and economic crisis caused by a pandemic which – as authoritative scientific research and studies claim – has been made more widespread and lethal by climate change and environmental pollution.

If, as we can foresee, a new pandemic breaks out in a few years, it will be good for the world to be prepared, having made the ecosystem healthier and cleaner in view of hindering the spread of new viruses with a global prevention strategy, also at environmental and climate levels.

Related

(function(d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = “//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.4”; fjs.parentNode.insertBefore(js, fjs); }(document, ‘script’, ‘facebook-jssdk’));

Source


Spread the love

BUSINESS & ECONOMY

A Labour Government Should not Frighten the Horses

Published

on

By

Spread the love

The UK general election is likely to mean changes, but Gulf citizens need not be too worried.

By James Drummond

If the tension was killing you, now you know. If it wasn’t, then be aware that a general election in the United Kingdom will be held on July 4 – less than six weeks away.

For the hapless Rishi Sunak, it looks like a case of “If it were done when ’tis done, then ’twere well it were done quickly.” Polls indicate that after 14 years of conservatism, real or imagined, voters are likely to elect a new Labour government.

What does this mean for us here in the Gulf?

The six Gulf states are certainly exposed to Britain. The extent of GCC holdings in the UK is enormous, ranging from Qatari ownership of the Shard building in London, stakes in the Sainsburys supermarket chain and Barclays bank, to Sheikh Mohammed bin Rashid’s Godolphin stables in Suffolk.

Manchester City and Newcastle United football clubs are owned by Emirati and Saudi interests, respectively. Kuwait’s wealth is managed by the Kuwait Investment Office near St Pauls Cathedral.

Labour has been careful to detail very few policies (or hostages to fortune, as its strategists may see it), but last week, David Lammy, the likely new foreign secretary, outlined a further campaign against dirty money.

Britain is a “corruption services centre”, while London is a “hotbed of kleptocracy”, Mr Lammy said. He said that he wanted to reward whistleblowers and clamp down on “enablers” of financial crime.

Given the paucity of public announcements, Lammy’s speech is significant, because it implies that the incoming government is likely to act. Fighting financial crime is relatively uncontroversial and attracts cross-party support – although in the UK’s case with limited success.

British politicians have made similarly grandiose statements before. But after Russia’s invasion of Ukraine, London has moved particularly against Russian dirty money, and sanctioned individuals. It finally introduced an obligation mandating the disclosure of beneficial owners of property.

Overseas trusts are also now required to disclose their ultimate beneficial owners, and there is now greater transparency when registering entities at Companies House.

This seems to have had only limited effect, however. Last week Andrew Mitchell, the deputy foreign secretary, cited estimates that 40 percent of the world’s dirty money still passes through London.

Spotlight on Corruption, a non-governmental organisation, wrote in October last year that “major reform is needed to how lawyers and accountants, the property sector and company formation agents are regulated for money laundering.” Lammy may choose to take further action against these and other professionals.

Other so-called enablers include retired politicians, some of them in the House of Lords, who work as advisors to unsavoury actors. Labour could move to tighten disclosure, although several of its senior former members are likely to lobby against further transparency.

It is also possible that Labour will go further in taxing expatriates. In its limited public commitments, the party has promised to clamp down on “tax dodgers”.

Those with property in the UK already pay tax on rental income they receive, and worldwide assets are subject to Britain’s inheritance tax. Some Gulf Arab families with UK property have been caught by inheritance tax.

A government led by Sir Keir Starmer, the Labour leader, could go further, as the US does, in taxing worldwide income of its citizens, more than 200,000 of whom live in the UAE alone. The argument is that if you have the privilege of carrying the passport, you have an obligation to pay tax.

Another question surrounds nationalisation. Labour is committed to re-nationalising the railways for one, although the infrastructure is already under central government control.

But another target may – may – be England’s water supply network, which was privatised in 1989. Shareholders in various of the rump companies include the Qatar Investment Authority and Adia of the UAE.

The water companies have been the subject of a vociferous campaign, for allegedly paying their shareholders high dividends while neglecting maintenance and investment. It is possible that an incoming Labour government will nationalise the industry.

All that said, the primacy of the rule of law and respect for property rights remain strong in Britain.

Barratt, a mass housebuilder, reported earlier this week that London remains the top choice among world cities for UAE investors looking to buy overseas. The holdings of Gulf states and rights of Gulf citizens in the UK remain secure, even with a Labour government.

James Drummond is Editor-in-Chief of the AGBi

Courtesy: The AGBI.Com


Spread the love
Continue Reading

BUSINESS & ECONOMY

Kuwait’s Political Crisis Adds to Economic Uncertainty

Published

on

By

Spread the love

Kuwait’s latest standoff is deeply concerning for both the near and long term, writes Andrew Cunningham

The decision by Kuwaiti emir Sheikh Mishal Al-Ahmad to dissolve the country’s recently elected parliament just days before its inaugural session on May 14 presents overseas investors and Kuwaiti citizens with more uncertainty.

The situation raises concerns about the country’s economic prospects over both the short and long term.

Disputes and stand-offs between Kuwait’s emirs and its boisterous parliament are nothing new. Parliament has been dissolved, and the constitution suspended, numerous times over the past 40 years. The country has held four elections in the past four years.

Squabbling between the two sides is rooted in political disagreements and this most recent outbreak is no different.

A major factor behind the latest dissolution is believed to have been parliament’s objection to Sheikh Mishal’s choice of crown prince. Although the crown prince is nominated by the emir, the appointment has to be ratified by the parliament.

But these political, and sometimes personal, disputes have real consequences for Kuwait’s economy and financial system and, ultimately, for the long-term welfare of its citizens.

Kuwait is a prosperous country. If we take a snapshot today, we see it producing nearly 2.5 million barrels of oil per day (bpd), and there are plans under way to increase production capacity to 4 million bpd by 2035.

State foreign reserves are around $930 billion, according to National Bank of Kuwait, the country’s largest bank. With a population of a little over 4 million, its GDP per capita is one of the highest in the world.

Squabbling between the two sides is rooted in political disagreements and this most recent outbreak is no different.

A major factor behind the latest dissolution is believed to have been parliament’s objection to Sheikh Mishal’s choice of crown prince. Although the crown prince is nominated by the emir, the appointment has to be ratified by the parliament.

But these political, and sometimes personal, disputes have real consequences for Kuwait’s economy and financial system and, ultimately, for the long-term welfare of its citizens.

Kuwait is a prosperous country. If we take a snapshot today, we see it producing nearly 2.5 million barrels of oil per day (bpd), and there are plans under way to increase production capacity to 4 million bpd by 2035.

State foreign reserves are around $930 billion, according to National Bank of Kuwait, the country’s largest bank. With a population of a little over 4 million, its GDP per capita is one of the highest in the world.

In March this year, rating agency Fitch described Kuwait’s fiscal and external balance sheets as among the strongest of any of the governments it rates.

But when we look at long-term trends, the picture is more complex and less secure.

Kuwaiti government spending remains overwhelmingly dependent on oil and gas revenues. The government has made almost no progress, over many decades, in diversifying the economy away from oil, or in reducing the huge burden of government salaries and welfare payments.

Oil and gas revenues currently account for nearly 70 percent of total income and, according to IMF projections, will continue to do so for the rest of the decade.

These revenues have served the country well in the past, despite the volatility of oil prices, but such overwhelming dependence looks foolhardy when consumers worldwide are striving to reduce consumption of oil and gas and investors and energy firms have pivoted towards renewables.

Nearly all of the Kuwaiti government’s non-oil and gas revenue arises from overseas investments and from dividends from state-owned companies. Tax revenues account for less than 1 percent of total government income.

Looking beyond the fiscal imperative to diversify the economy is the need to provide employment opportunities for Kuwaiti citizens.

No less than 84 percent of the Kuwaiti workforce was employed by the government at the end of 2022. It is hardly surprising that nearly half of government expenditure is allocated to the salaries of public employees.

Pressure for social spending will increase in the years ahead. A World Bank report, published last year, showed that levels of obesity and Type 2 diabetes were higher in Kuwait than in any of the other GCC countries and nearly double the average in OECD countries.

Partly as a result of this, the World Bank estimated that Kuwait’s old age dependency ratio – the number of people over 65 years old in relation to those of working age – will be nearly double that of its neighbours by 2040.

Kuwait is also a country that is being significantly affected, even today, by climate change. Temperatures during the summer can exceed 50 degrees, making Kuwait one of the hottest places on earth.

These are difficult and complex challenges, both economic and social, but they are hardly unique to Kuwait. That they are, in some cases, more acute in Kuwait than elsewhere is due to decades’ long procrastination and political paralysis.

The government’s General Reserve Fund, which held most of its liquid assets, was entirely depleted in September 2020, according to Kuwait’s own ministry of finance. With AA ratings, the obvious solution was to borrow money – Kuwait’s debt-to-GDP ratio is less than 5 percent. Yet the parliament has still not passed a so-called ‘Liquidity Law‘ that would allow modest issuance of foreign currency debt.

The parliament also held up the introduction of Value Added Tax (VAT), making Kuwait one of two of the six GCC countries not to fulfil a joint commitment to implement a minimum VAT of 5 percent.

Over the past four years, all three of the big international credit rating agencies have downgraded the government of Kuwait.

In their rating reports, all agencies cited a dysfunctional and slow-moving political environment that was reducing the country’s financial flexibility and delaying much needed economic and financial reform.

Politics matters.

It is unrealistic to think that after decades of enmity the ruling family and the parliament will soon form a harmonious working relationship.

But they do need to find some common ground that will enable them to start addressing fundamental economic and social issues while the country still has large financial reserves and strong credit ratings.

Time is running out.

Andrew Cunningham writes and consults on risk and governance in Middle East and sharia-compliant banking systems


Spread the love
Continue Reading

BUSINESS & ECONOMY

ICD and JSC Ziraat Bank Collaborate to Boost Uzbekistan’s Private Sector

Published

on

By

Spread the love

At the 3rd Tashkent Investment Forum, the Islamic Corporation for the Development of the Private Sector (ICD) and JSC Ziraat Bank Uzbekistan took a significant step forward in their partnership to empower small and medium-sized enterprises (SMEs) and foster economic growth in Uzbekistan. The forum, held in the capital city of Uzbekistan, brought together key stakeholders from the public and private sectors to discuss investment opportunities and economic development strategies for the region. The collaboration between the Islamic Corporation for the Development of the Private Sector (ICD) and JSC Ziraat Bank Uzbekistan is aimed at boosting the private sector in Uzbekistan.

During the forum, ICD and JSC Ziraat Bank Uzbekistan formalized an expression of intent to collaborate on various initiatives aimed at supporting SMEs. One of the key elements of this collaboration is the provision of a Line of Financing (LoF) facility by ICD to JSC Ziraat Bank Uzbekistan. This LoF facility will enable the bank to fund private sector projects as an agent of ICD, thereby providing SMEs with access to the necessary capital to initiate and grow their businesses.

The partnership between ICD and JSC Ziraat Bank Uzbekistan is expected to have a significant impact on the SME landscape in Uzbekistan. By equipping entrepreneurs with the resources they need to succeed, this collaboration will not only support the growth of individual businesses but also contribute to the overall economic development of the country. SMEs play a crucial role in driving economic growth, creating jobs, and fostering innovation, and this partnership will help strengthen the SME ecosystem in Uzbekistan.

JSC Ziraat Bank Uzbekistan, as a strategic partner for ICD, brings a wealth of experience and expertise to the table. As a prominent commercial bank with foreign capital, JSC Ziraat Bank Uzbekistan has a strong track record of supporting SMEs and promoting economic development. The bank’s partnership with ICD further underscores its commitment to advancing the private sector in Uzbekistan and its dedication to supporting the country’s economic growth.

ICD, for its part, is a leading multilateral development financial institution that focuses on supporting the economic development of its member countries through the provision of finance and advisory services to private sector enterprises. By partnering with JSC Ziraat Bank Uzbekistan, ICD is furthering its mission of promoting economic development and fostering entrepreneurship in Uzbekistan and across the Islamic world.

The LoF facility provided by ICD to JSC Ziraat Bank Uzbekistan is just one example of the many initiatives that the two entities are undertaking to support SMEs in Uzbekistan. In addition to providing financial support, the partnership between ICD and JSC Ziraat Bank Uzbekistan will also include capacity-building initiatives and technical assistance programs to help SMEs succeed in today’s competitive business environment.

Overall, the partnership between ICD and JSC Ziraat Bank Uzbekistan represents a significant step forward in supporting SMEs and fostering economic growth in Uzbekistan. By working together, these two institutions are helping to create a more vibrant and dynamic private sector in Uzbekistan, which will ultimately benefit the country’s economy and its people. The collaboration between the Islamic Corporation for the Development of the Private Sector (ICD) and JSC Ziraat Bank Uzbekistan is expected to have a far-reaching impact on the private sector in Uzbekistan.


Spread the love
Continue Reading

Trending

Copyright © 2023 Focus on Halal Economy | Powered by Africa Islamic Economic Foundation