Infrastructure & Investment

Abstract: The Kingdom of Saudi Arabia (KSA) is a water-scarce region with a dry, desert climate, yet flood-producing precipitation events and heat extremes lead to loss of life and damages to local infrastructure, property and economy. Due to its distinctive natural and man-made spatial features (e.g., coastal features, wadis, agricultural areas) studying changes in the mean climate and extreme events requires higher-resolution climate projections than those available from the current generation of Earth System Models.

Here, a high-resolution convection-permitting regional climate model is used to downscale the middle of the 21st century (2041–2050) climate projections of the Community Earth System Model (CESM) under representative concentration pathway (RCP) 8.5 and for a historical time period (2008–2017) focusing on two months (August and November) within KSA’s dry-hot and wet seasons, where extreme events have historically been observed more frequently. Downscaling of climate reanalysis is also performed for the historical time period (2008–2017) to evaluate the downscaling methodology.

An increase in the intensity and frequency of precipitation events is found in August by mid-century, particularly along the mountainous western coast of KSA, suggesting potential for water harvesting. Conversely, the northern flank of the Empty Quarter experiences a noticeable reduction in mean and extreme precipitation rates during the wet season. Increasing August heat index is found to particularly make regional habitability difficult in Jeddah by mid-century.

Cambridge, Mass., September 17, 2020—Recognizing the critical value of scientific research and risk and policy analysis to its financial management strategy, V-Square Quantitative Management (VSQM) has joined the MIT Joint Program on the Science and Policy of Global Change as a program sponsor. A global asset management firm and a sustainability analytics platform, VSQM is headquartered in Chicago.

The financial community has become increasingly concerned with two types of threats to financial and economic systems driven by climate change and efforts to alleviate it: physical risk—exposure to climate and/or weather extremes, and transition risk—the potential for fossil fuel assets to lose value in a rapid transition to a low-carbon economy.

A strong focus on climate-related financial risk has emerged in the past two years. Investors, particularly large institutional investors, have increasingly sought to understand whether the companies they’re investing in are exposed to climate risk. Central banks, particularly those in Europe, have also been concerned about systemic risks. For good reason: during the financial crisis of 2008, the failure of a few large financial institutions threatened the entire system.

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