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Colder weather is settling in around much of the globe and after a year and a half of managing a global pandemic, energy markets are more complicated than ever.  The U.S. petroleum inventory is at its lowest level since 2015, the UK is experiencing a severe energy crisis, Russia continues to push Germany on the Nordstream II pipeline and winter has already come to China, which has experienced weeks of rolling blackouts. What does all of this mean as both state and non-state cyber actors continue to take aim at energy infrastructure?

The Cipher Brief spoke with energy expert Norm Roule, a top adviser on energy issues, to get a sense of where we’re headed.

Norman T. Roule served for 34-years in the Central Intelligence Agency, managing numerous programs relating to Iran and the Middle East.  He served as the National Intelligence Manager for Iran (NIM-I) at the Office of the Director of National Intelligence from November 2008 until September 2017.  As NIM-I, he was the principal Intelligence Community (IC) official responsible for overseeing all aspects of national intelligence policy and activities related to Iran, to include IC engagement on Iran issues with senior policy makers in the National Security Council and the Department of State.

The Cipher Brief: Give us a brief snapshot of the global energy market today and what you think we will see in the coming months.

Roule: The energy market is working through what will hopefully be the final phase of a perfect storm of market distortions ignited by the pandemic and influenced by shifts in capital markets and climate change initiatives. I say the final phase because most countries are returning to growth and pre-pandemic energy consumption. Most of the drivers of this final phase will likely push prices upward in the near term. A few involve long-known issues that are now coming into play. A few remain unpredictable. Ancillary industries that rely on oil, gas, or distillates as significant feedstocks will either raise prices or shift production to areas with less exposure to hydrocarbons. In short, in the coming weeks, consumers should expend to not only pay more at the gas pump but at the supermarket and mall.  We are likely to see relief in the Spring as the pandemic and supply chain distortions wane, seasonal demands on oil and gas pass, and energy producers ramp up operations to exploit high prices. China’s economy also shows signs of slowing, and financial packages meant to jump-start global economies will run their course.

The Cipher Brief: Energy markets seem more complicated than ever. What are the primary variables at play?

Roule: Global oil consumption is now back to 100 million barrels per day, a statistic last seen when the pandemic hit. Production is up, but the most crucial trend in recent months has been the deep draw on the glut of oil stocks during the pandemic. Producers – especially OPEC – have constrained production to reflect their cautious approach to market stability and their desire to reduce the stockpiles accumulated during the pandemic. As a result, stocks are now lower than before the pandemic. If you exclude the strategic petroleum reserve, the U.S. petroleum inventory is at a level not seen since 2014-2015. Stockpiles at Cushing are at a similar level. U.S. gasoline stocks are around five million barrels below pre-pandemic seasonal averages.

U.S. producers have consolidated, and the industry prioritizes return on equity over expansion, particularly in a political environment that is increasingly hostile to hydrocarbon production. As a result, U.S. oil production is still about 1.7 million barrels a day below pre-pandemic levels. Add to this the push to reduce carbon emissions, gas supply cuts, and some supply chain distortions, and you get a surge in gas prices and a need for oil (and coal) to replace gas in electricity production, as we see in China.

The Cipher Brief: The administration seems to be blaming OPEC plus for high oil prices. What’s happening within the cartel?  How does the cartel see the current energy market?

Roule: OPEC’s role in oil markets remains deeply significant. The cartel produces 40 percent of the world’s oil, but 60 percent of the world’s total traded exports. That inevitably gives it an important voice. It is also clear that OPEC+ leaders remain confident in their strategy to maintain market stability and benefit from prices that are not so high that they ignite demand destruction. OPEC discipline during this turbulent period has been quite good, especially given that it is far from a monolith of views and capabilities. For example, the UAE would likely support additional production. Moscow makes positive noises about its willingness to increase production, but it follows Riyadh’s lead for the revenue and political advantage it derives from the current market.  

Riyadh remains the architect of OPEC’s approach. Kuwait and Baghdad seem comfortable with this strategy. Production restraint is made easier because about half of OPEC’s members reportedly are unable to meet production quotas due to technical problems, mismanagement, or a lack of capital investment. This list includes Angola, Gabon, Equatorial Guinea, Nigeria, Libya, and Venezuela.  

OPEC decision-making likely rests on a handful of variables, some predictable, others not. The cartel has done well in its assessments of global recovery and pandemic impact. But questions remain on aviation recovery. Likewise, even their best analysts have a tough time predicting the impact of speculators, weather trends, and the future of sanctions on Iran and Venezuela. Riyadh and Abu Dhabi will do what they can to avoid the financial and political consequences of inflation and any energy-instigated recession.

The strains in US-Saudi relations appear to have undermined Riyadh’s sympathy for Washington’s challenges. The Saudis are tired of being a political target within the U.S. They also seem to believe that while the U.S. touts itself as being interested in only renewable energy sources, it has no problem criticizing the Kingdom when high gas prices become a political issue. Last, we should recall that it was only in May 2020 that a group of Republican Senators publicly called on Saudi Arabia, demanding that it stabilize the energy market. From Riyadh’s perspective, it has done precisely that.

The Cipher Brief: Are the Gulf oil producers serious about renewable energy? 

Roule: Absolutely. Regional leaders certainly understand the consequences of climate change for their people. In recent years, the region has experienced some of the highest temperatures on record, causing concern that, if unchecked, the trend could make portions of the Middle East unlivable.

But their approach is different from ours and as we all know, Gulf economies rely heavily on revenues from hydrocarbons. To varying degrees, all the Gulf states are trying to diversify their economies. But they also want to avoid a situation in which they are stuck with stranded strategic assets. In the West, our climate narrative tends to focus on ending the use of hydrocarbons. As with Norway, Gulf producers claim that they will use the resources from their oil revenues to fund the transition to a new energy economy.

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Their focus tends to be a balance between a reduction of emissions and reduction of hydrocarbon use. Recent weeks have seen multiple significant events in the Gulf in which they tried to highlight their decision to expend resources and political bandwidth on green technologies, hydrogen production, and carbon capture solutions. We will also see increasing efforts to plant trees and to rely on natural gas instead of oil for power generation. They also claim they will try to end gas flaring and reduce methane emissions. I don’t think these efforts will satisfy Western environmental activists who demand an end to oil use, but the trend is undeniable.

The Cipher Brief: What is happening with U.S. oil and gas producers?  How are they responding to changing conditions?

Roule: Much has changed in the last two years. First, the sector underwent significant consolidation. The larger publicly-held companies must satisfy investors and financial institutions with a steady return on equity over the growth. Washington has cooled on its support for the industry. The decision to kill the Keystone Pipeline and limit drilling on federal property has contributed to industry reluctance on expansion. Last, some investors are pushing for companies to devote more attention to renewable energy sources.  During the pandemic, this reduced capital investment to about half of average expenditure, thus producing our current limited production capacity. U.S. rig count has significantly improved over the past year, but not on a scale that would return U.S. production to pre-pandemic levels. In the near term, smaller privately-held firms are likely to spend the resources to expand production with public firms following once they get a sense of what 2022 will bring.

The results speak for themselves. At the beginning of the pandemic, the U.S. produced around 12.8 million barrels of oil per day (BPD). By May 2020, production declined to 9.7 million BPD, and with recovery is now approximately 11.3 million BPD.  We are once again a net importer, bringing in about 1.3 million BPD in October.

We have seen a broader recovery in gas production, particularly in Texas. But a lack of production, low stockpiles, and unprecedented demand from abroad means consumers will face high bills if winter is severe or the risk of short supplies. Beyond heating, gas-fired power plants produce more than 50% of New England’s electricity, for example, so that any price spike will play out elsewhere in the economy.

The Cipher Brief: Is there a policy response to this situation?

Roule: I think policymakers globally are praying for a mild winter. But beyond this, policy options are few in the near term. A release from the strategic petroleum reserve (SPR) is conceivable. Still, we should remember the SPR was established for national emergencies and not a piggy bank to manage gas prices in an election year. Domestic producers will take a while to ramp up production, but policymakers will find this tough to seek in the current political environment. The administration could ban oil and gas exports or allow Congress to pass legislation enabling the federal government to sue OPEC for its cartel activities. Either step would invite predictable and unwelcome diplomatic consequences. 

Although the American public demands cheap energy, it isn’t enthusiastic about supporting the infrastructure needed to achieve this, even if the power is produced elsewhere.  Let me cite a couple of recent examples:

• Maine voters just rejected the construction of a billion-dollar electric line that would have delivered Canadian hydro-power electricity to New England.

• The administration is wrestling with a decision as to whether it should shut a pipeline that carries crude oil from Canada to refineries across Wisconsin, Michigan, and the Great Lakes region. 

If the administration hopes to convince OPEC members to increase production, it will improve relations with Gulf Arabs. It might be possible to convince Saudi Arabia, Kuwait, and the UAE to lift production to cover the exports of OPEC members unable to meet their production quotas. In an extreme situation, the administration might consider a temporary oil export waiver to Iran as a sign of goodwill. I think the political blowback on the latter rules it out, but the possibility is there. 

The Cipher Brief: The United Kingdom seems to be working its way through a severe energy crisis. How did this happen, and what are its policymakers doing in response?

Roule: The United Kingdom’s energy challenge is significant. As with other countries, it faces consequences of production limitation and the need to turn to more climate-friendly energy sources.

A few basics.  Gas produces about 40% of the country’s electricity and heats many of its homes. Once London could rely on the North Sea for its gas; it now imports about half of its gas requirements.  Norway is its primary gas source, but it also depends on gas producers in the U.S., Russia, Qatar, Belgium, and the Netherlands. To add to its woes, the U.K.’s storage capacity would survive only a short period of peak consumption. In 2017, London closed a massive Rough, which accounted for 70% of the country’s entire gas storage system. At the time, London believed it could rely on the global LNG market for reliable and cheap gas. Unfortunately, most LNG tankers head to Asia, a trend that can only increase as power-hungry Asian countries wean themselves from coal and oil.

The exploitation of new energy sources in the U.K. is no less contentious than in the U.S. A good illustration of this would be the tussle over the development of the Cambo oil and gas field in the waters near Scotland. Opposed by environmentalists who cite the inevitable carbon emissions the project and its oil would produce, the project offers to ease London’s energy woes and provide around a thousand jobs. The Johnson government has yet to indicate whether it will approve the project.

London’s options are few and leaving the country reliant on market conditions means risking shortages. For this reason, it has reportedly asked Qatar to agree to become the “supplier of last resort” in case global suppliers are unavailable. 

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The Cipher Brief: What’s the Russian angle to the energy story?

Roule: Upfront, I think we should worry whether Russia will perceive the energy crisis as offering an opportunity for aggression. What if Moscow decides its gas hold over Europe allows it to invade Ukraine without penalty? Or as a means of pushing German regulators to accelerate their approval of the Nordstream II pipeline?

Moscow insists that it is meeting contractual obligations and that its exports have increased in the past year. At the same time, there are routine reports that Russia’s gas supplies to Europe have not only not met requirements, but that gas flow reversed in the Yamal-Europe pipeline. Russia also maintains eight gas storage sites in Europe to help manage supply during high-demand periods. Gas levels at these sites are currently low. Critics claim Gazprom diverted production to Russian domestic storage and that exports in October fell to the lowest level since 2014. When pressed, Moscow explains shortages saying that it must fill its winter supply stocks and expects to send Europe additional gas this week. 

But if the current energy dynamic seems to be in Russia’s interest, Moscow’s long-term prospects are dim. A global shift to renewable energy sources forces Moscow to reckon with the prospect of holding a massive oil infrastructure of little commercial value. If so, future historians may look at the recent Glasgow climate summit as a significant step in accelerating Russia’s decline, possibly a new era of aggression as it seeks to accumulate power ahead of this decline or a more competitive race for market share against OPEC members.

The Cipher Brief: What about China?

Roule: No major country has endured such energy problems in recent months as China. After weeks of rolling blackouts, China looks well on its way to solving its coal problems that partially contributed to this situation. That won’t delight environmentalists, but it should ease China’s electricity problems and ensure its citizens stay warm this winter. Winter arrived early, and Beijing is about to see its first snow of the season. China’s efforts will be put to the test in a winter that many expect to be colder than 2020.

Longer-term, China still must work through the causes of this crisis. If the global economy continues to surge demand for Chinese products, its energy requirements will grow. Weather problems cut wind production; floods shut mines. We shouldn’t be surprised if such problems continue. Inevitably, China can only meet its climate goals by shifting from coal to natural gas, raising prices for other consumers.

The Cipher Brief: Let’s shift to North Africa.  Algeria recently closed a long-established pipeline that transited Morocco to deliver gas to Spain.  Will this impact Europe’s already tight gas situation? What’s the story here? 

Roule: Over the past year, Algerian relations with Morocco have steadily deteriorated.  In addition to their traditional disagreement over the status of Western Sahara and the Polisario, Algiers criticized Morocco’s renewed ties with Israel and accused Rabat of supporting an opposition group that Algeria claims ignited forest fires. Algiers closed its airspace to Moroccan flights and accused Morocco of killing several Algerian citizens in the Sahara region.

Here’s how it touches the energy picture. On 31 October, Algiers closed an 800-mile pipeline that carried Algerian gas to Spain via Morocco and the Strait of Gibraltar.  The closure cost Morocco a portion of the gas it used from the pipeline. Morocco used this gas to produce about a tenth of its electricity. Rabat claims it can use other energy sources for this purpose. However, Spain has little gas and derives a significant portion of its electricity from that which it must import. Algiers claims it will make up the loss through a secondary pipeline, but the loss of gas will compound the energy problems of Spain and Europe in general.

The Cipher Brief: Any other issues on the horizon we should consider?

Roule: A growing number of aging refineries in the West will be closed in the coming years.  However, Asia is the new center for refinery construction. This expansion will draw even more crude to the region for processing with the inherent impact on local economies and global consumers.

The Cipher Brief: Last, let’s touch on wild cards. What are the grey swans that might impact markets in 2022?

Roule: With low stockpiles and supplies, the energy topography is ill-prepared to sudden shocks to its production or distribution architecture. Yet, it faces three threats that have grown in the last decade.

First, we have climate change issues.  Increasingly harsh weather events have shut down large portions of the production and refinery sectors in the United States and Mexico, sometimes taking weeks to restore normal production. Second, we have the universe of cyber threats.  State and non-state cyber actors routinely probe or attack every aspect of the energy industry. Last, we have new geopolitical pressures.  Tensions are rising with China as well as Iran and its proxies. Three of the world’s six most significant shipping channels are in the Middle East and a fourth in Asia.

Join us for a Members Only Brief with Norm Roule on Thursday, November 18 at 1:30p.  Cipher Brief Members receive invitations via email.

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This piece was first published by RUSI in London.  The views do not represent those of RUSI.

EXPERT PERSPECTIVE –The international community is coming under increasing pressure to recognise the Taliban and to unfreeze Afghan funds held by the IMF or to risk a humanitarian crisis over the winter and a resurgence of international terrorism.

As Afghanistan heads deeper into winter the desperate need is to avoid a humanitarian crisis. The World Food Programme has launched an appeal to feed up to 23 million people and Médecins sans Frontières have followed suit in the healthcare field. Fortunately, the distribution mechanisms are in place inside Afghanistan; what is needed is for the international community to ensure that UN humanitarian programmes are fully funded. This will require Western capitals to get over the shock of their recent defeat. It goes without saying that hunger and health should not be used as instruments of political leverage.

Meanwhile, it is becoming ever more apparent that the Taliban do not have the skills to administer a country which is far more complex than the Afghanistan of 1996 – when they began their previous and disastrous spell in office. They will need international assistance to stabilise the economy, get people back to work and, in time, continue the gradual infrastructure improvements which have been underway since 2002. China will doubtless be willing to assist in some areas but Beijing has already made clear that it is adopting a cautious, gradualist approach. However, there are emerging indications that the Taliban’s intransigent views are beginning to relax; such as their approval of the polio vaccination scheme and their willingness to work with UN humanitarian agencies.

The Taliban will also need outside help in defeating the threat from the Islamic State’s Khorasan Province (ISK). Already the Taliban are finding it difficult to counter similar asymmetric tactics which they used so successfully against Western forces. This is likely one of the subjects which CIA Director William Burns discussed with the Taliban during his visit on 24 August and where there is a mutual interest.

What can the international community (not just the West) realistically expect from the Taliban, following the militant group’s stunning victory? Maximalist demands will inevitably get short shrift.

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First, the Taliban should form a more inclusive government. According to multiple sources, the Taliban were intending to form such an administration had Ashraf Ghani not fled the country on 15 August. I am sceptical that this was ever their intention but former president Hamid Karzai and former reconciliation chief Abdullah Abdullah may have remained in Kabul on this understanding and Fatima Gailani, a former negotiator, insists this was the Taliban’s intention.

An inclusive government would need to include women and non-Taliban representatives from the Hazara, Uzbek and Tajik communities. It need not comprise the failed politicians and bloodstained warlords of the past, least of all Gulbuddin Hekmatyar and Abdul Rashid Dostum. It is surely time for a new generation of more technocratic Afghans to become involved in government. Some may be persuaded to return from abroad but they will need assurances for their safety.

Second, the international community should insist on female education at all levels be restored and for women to play a fuller role in society. The Taliban will baulk at this but they only need to look at Pakistan where women play an important role in an avowedly Islamic, if not Islamist, society.

Third, all neighbouring countries, as well as the wider world, want Afghanistan to commit to removing all terrorist bases and terrorists from its soil; not just ISK and Al-Qa’ida but also the Eastern Turkistan Islamic Movement, the Pakistani Taliban (TTP), anti-Iranian and anti-Indian groups, and Central Asian militant movements including the Islamic Movement of Uzbekistan.

Fourth, the Taliban should commit to allow people to join their families in exile if they wish and also cease the continuing search for and punishment of those Afghans who served the Afghan government and Western allies since 2001.

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In an ideal world there would also be a fifth request: to remove Haqqani network members from the Taliban administration. However, that pass was sold when the US negotiator Zalmay Khalilzad engaged with the Haqqanis in Doha – another result of that calamitous dialogue. Furthermore, the current reality is that the Haqqanis control both Kabul and its airport and Sirajuddin Haqqani holds the key position of interior minister.

Instead, the Haqqanis need to be persuaded to prevent Al-Qa’ida regrouping in Afghanistan. Sirajuddin’s father was close to Osama bin Laden and the group retains its Al-Qa’ida connections. Pakistan is already using the Haqqanis to bring the TTP to the negotiating table. It remains to be seen how successful this will be. It is doubtful that the Haqqanis would be willing to take military action against a group from a similar area in the tribal borderlands. However, the Haqqanis could be useful as intermediaries, if not as enforcers.

Meanwhile, the wider Taliban, usually referred to as the ‘Kandaharis’, are increasingly exasperated by the entryist Haqqanis. Although they have worked together, there was never much love lost between the two. The Kandaharis have always distrusted the Haqqanis’ proximity to the Pakistani military. Since the Taliban takeover of Afghanistan, Mullah Abdul-Ghani Baradar, whose willingness to negotiate with the Kabul government in 2008 and 2010 earned him eight years in a Pakistani prison, has been sidelined. There will doubtless be a reckoning

A lasting regret of the US’s careless withdrawal is that Washington did not conclude a broader settlement for Afghanistan involving China, Iran, Russia, India and the Central Asian Republics. From now on it is essential to include all the neighbours in the discussion of recognition and the conditions required. But first the Afghans must be helped to survive the winter.

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An Argentinian woman has become the second-ever HIV-infected person whose immune system helped defeat the virus without requiring additional medical treatment. She was first diagnosed with the AIDS-causing infection in 2013.

Scientists have dubbed the 30-year-old mother the “Esperanza patient,” after her hometown. The word ‘esperanza’ translates to ‘hope’ in English. Publishing their findings in the Annals of Internal Medicine journal on Monday, the researchers said the discovery boosts hope for a “sterilizing cure” for the estimated 38 million people with the life-long infection.

“I enjoy being healthy,” the Esperanza patient told NBC News over email. “I have a healthy family. I don’t have to medicate, and I live as though nothing has happened. This already is a privilege.”

The study found no intact remnants of the virus in the 1.5 billion blood and tissue cells the researchers analyzed – confirming the discovery first announced in March at an international meeting of HIV experts.

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No additional information about the woman has been made public, but she was described at the time as “athletic and beautiful” and revealed to have an HIV-negative boyfriend and newborn baby.

Only one other person, identified in August 2020 as 67-year-old Loreen Willenberg from San Francisco, has been confirmed to have overcome the virus without medical intervention. The two women have been labeled ‘elite controllers’, referring to a rare subset of HIV patients who show no signs of the infection despite not undergoing antiretroviral treatments.

Typically, an HIV-infected person requires constant drug therapy to prevent the virus from attaching to their immune cells’ DNA and replicating. But, in the eight years since she was diagnosed, the Esperanza patient only received medication for six months during pregnancy to ensure her baby would be healthy.

In all, there have been four patients cured of HIV, two of whom – the ‘Berlin patient’ Timothy Ray Brown and the ‘London patient’ Adam Castillejo – were also cancer patients who received risky bone marrow transplants from donors with HIV-resistant genes. However, the success of their procedures is yet to be replicated.

“This is really the miracle of the human immune system that did it,” Dr. Xu Yu, an immunologist at the Ragon Institute in Boston, who co-authored the study, told NBC.

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UK Home Secretary Priti Patel has acted to proscribe the Palestinian group Hamas “in its entirety,” stating that it has significant capacity to carry out terrorist acts and has facilities to train attackers.

In a tweet on Friday, Patel stated that she had banned the Palestinian group Hamas and designated it a terrorist organization, as she reiterated the British government’s commitment to “tackling extremism and terrorism wherever it occurs.”

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“Hamas has significant terrorist capability, including access to extensive and sophisticated weaponry, as well as terrorist training facilities,” she wrote.  

The home secretary’s tweet came during her visit to Washington and followed speculation on Friday morning that she was soon to outlaw the group.

Pre-empting Patel’s announcement, Israeli Prime Minister Naftali Bennett welcomed Britain’s “intention” on Twitter.

“Hamas is a radical Islamic group that targets innocent Israelis & seeks Israel’s destruction. I welcome the UK’s intention to declare Hamas a terrorist organization in its entirety – because that’s exactly what it is,” Bennett wrote, thanking the leadership of Prime Minister Boris Johnson.  

Yair Lapid, Israel’s foreign minister, also hailed the expected move against Hamas, saying it was “part of strengthening ties with Britain.” 

Until now, only Hamas’ military wing, the Izz al-Din al-Qassam Brigades, had been outlawed by the British government. The EU and the US have already proscribed all of Hamas.

Hamas political official Sami Abu Zuhri rejected Britain’s move, claiming it showed “absolute bias toward the Israeli occupation and is a submission to Israeli blackmail and dictations.” 

In a separate statement, the group claimed it had a right to resist occupation by all available means, “including armed resistance.”

Hamas seized total control of Gaza in 2007, on the back of an election victory in 2006.

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Have a lazy cat? Want to make him more active? Well, since cats listen to nobody, your only chance is to start doodling.

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The city council in Austria’s second-largest city, Graz, has elected a new mayor. Communist Party member Elke Kahr has become the first Communist leader of a major city in the country.

The 60-year-old politician, who has been working in the municipal government for more than 15 years and previously served as vice mayor of Graz, was elected as the new city leader on Wednesday. A member of the Austrian Communist Party (KPÖ, Kommunistische Partei Österreichs) for almost 30 years, she won the election with 28 of 46 votes. Kahr succeeded the previous long-standing mayor Siegfried Nagl of the center-right, liberal-conservative People’s Party.

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“Who would have thought that the daughter of a locksmith, a Communist, would become mayor,” she said in her first speech following the vote.

Having acknowledged a number of issues to deal with in the city, especially during the Covid-19 pandemic, the new mayor highlighted a housing policy, pledging to put a stop to profit-driven construction in Ganz.

The Communists have also already formed a coalition with the Greens and the Social Democratic Party (SPÖ), and another precedent in European city governance was made – two women serving as mayor and deputy. Green leader Judith Schwentner was chosen as Graz’s vice mayor, with the new governing coalition saying they would support not only social, but also environmental changes, aiming to improve living standards especially for low-income groups. Providing a bicycle for every child in the city from the municipality is in their program.

However, not everyone in the local government is happy with the new Communist rule. A member of the right-wing Freedom Party of Austria (FPÖ), Alexis Pascuttini, described the choice as “unpleasant,” having accused the Graz Communists of empty catchphrases in their program and refusing to participate in what he described as “left-wing nonsense.” Kahr herself has been exposed to strong pressure to justify her party, being repeatedly asked about her position on “the crimes of communist parties around the world since 1917,” according to Austrian media.

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An American nonprofit behind the US-funded bat virus research in China has denied ever sending virus samples from Laos – a place where SARS-CoV-2 closest natural relative was found – to Wuhan in response to fresh allegations.

“No work was ever conducted in Laos as a part of this collaborative research project,” EcoHealth Alliance – a group that conducted experiments on coronaviruses while receiving funding from the National Institutes of Health (NIH) – said in a series of tweets on Sunday, responding to media reports alleging that the group might have transported a potentially dangerous virus from Laos to the laboratory in Wuhan.

However, we considered it a higher priority to continue our focus on China, and no work was ever conducted in Laos as a part of this collaborative research project.

— EcoHealth Alliance (@EcoHealthNYC) November 21, 2021

The group’s name surfaced in October when the NIH principal deputy director, Lawrence Tabak, revealed EcoHealth Alliance did experiment on the viruses with the agency’s financial help. At that time, White House Medical Advisor Dr. Anthony Fauci stated that the viruses studied as part of the project “were distant enough molecularly that no matter what you did to them, they could never, ever become SARS-CoV-2.”

EcoHealth has come under renewed scrutiny after its emails, obtained through a Freedom of Information request, appeared to suggest that the group was discussing the prospect of collecting viral samples from bats in Laos and sending them to the Wuhan Institute of Virology. The emails were initially obtained by the White Coat Waste Project and sparked a flurry of reports over the weekend, including in the Spectator by British science writer Matt Ridley.

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The emails shared between EcoHealth Alliance and its US government funders reportedly reveal that the scientists discussed collecting viral samples from bats in eight countries, including in Laos, between 2016 and 2019, and toyed with the idea of transporting them to Wuhan, ostensibly, to avoid red tape. One email from 2016 cited by the Spectator reportedly reads: “All samples collected would be tested at the Wuhan Institute of Virology.”

Laos is the birthplace of at least one virus that seems to be very close to SARS-Cov-2. A bat viral strain called Banal-52 discovered in Laos in September shares 96.8 percent of its genome with the virus behind the Covid-19 pandemic

On Sunday, EcoHealth Alliance claimed that the emails cited by Ridley “do not show…that we were sampling bats in Laos and sending the results to Wuhan.”

The group acknowledged, however, that it requested NIH permission to work in Southeast Asian countries, including in Laos, and that this permission was granted. 

However, the nonprofit claimed it ended focusing on China instead.

 The response failed to satisfy Ridley, who is also a co-author of a book on Covid’s origin, who demanded “evidence” proving that  his report was not “fully accurate.”

Hello, @EcoHealthNYC?

If you’re going to tweet accusing me of inaccuracy, can you please engage with this evidence that you were not being fully accurate?

Those of us interested in finding how the pandemic started would like to get answers to reasonable questions. https://t.co/yhPZcXBWmq

— Matt Ridley (@mattwridley) November 21, 2021

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Marx, Lenin, and Ho Chi Minh – the revolutionaries’ namesakes – have gathered for a wedding in India’s state of Kerala. Friedrich Engels was the one walking down the aisle.

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And this has nothing to do with time travel. In India’s southwestern state of Kerala parents have often named their children after prominent figures in the hammer and sickle movement. The local communist party has been at the helm there for much of the past 60 years, and is still quite popular with voters.

In the town of Athirappilly on Sunday the groom, Friedrich Engels, a namesake of the 19th century German philosopher who helped conceive Marxism, tied the knot with the bride, Bismitha. In attendance were also Engels’s brother Lenin, named after the man behind the 1917 Russian Revolution, as well as the groom’s friends, Marx and Ho Chi Minh, who bear the names of Marxism’s founding father and the Vietnamese revolutionary leader respectively.

All four men are members of India’s Communist Party. Incidentally, Marx is currently working and residing in ultra-capitalist Dubai, but flew back to see his friend exchange wedding vows with his betrothed, as reported by local media. 

Another wedding ceremony that took place in June in the state of Tamil Nadu, saw Socialism getting married in front of his brothers, Communism and Leninism, as well as nephew, Marxism.

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As part of a special series on climate in partnership with The Intelligence Project at Harvard University’s Belfer Center for Science and International Affairs, and Cipher Brief Expert and Senior Editor Kristin Wood, The Cipher Brief is focusing on the national security implications of climate change. 

This report is derived from a half-day conference in April 2021 co-sponsored by the Intelligence Project and the Environment and Natural Resources Program at Harvard Kennedy School’s Belfer Center for Science and International Affairs, along with the Center for Climate and Security and The Cipher Brief. It explores the requirements of the U.S. IC to fulfill the mission prescribed by President Biden, DNI Haines, and Secretary Kerry. The IC must rise to challenge, unshackled from the past, to re-imagine its role in combatting climate change.

The Authors

The Report

The U.S. Director of National Intelligence (DNI), Avril Haines, has stated that climate change needs to be at the center of U.S. foreign policy and national security. It is a threat multiplier that impacts every function of government and society: territorial integrity, economic well-being, social stability, and military capabilities are all impacted by climate change, directly and indirectly. However, in addressing climate change, the U.S. Intelligence Community (IC) is currently unsure of its mission space and hitherto has been relying on boilerplate responses to it. In an exclusive discussion, the U.S. Special Presidential Envoy for Climate, Secretary John Kerry, who should be a principal consumer of intelligence about climate change within the U.S. government, stated that the U.S. IC must deliver significantly more.

The increasing effects of climate change are arising at a moment when the nature of intelligence itself is undergoing a revolution—from the collection of hidden secrets to collation of non-obvious (but knowable) data frequently hiding out in the open. This watershed in intelligence and national security requires bold, innovative, ideas for the U.S. IC to adapt and anticipate security threats derived by climate change. It must establish its mission space and alter its own architecture to ensure it is providing its customers with intelligence about them needed. Its mission will not be about spies disseminating secrets to policymakers; rather, it will require a new intelligence and national security paradigm that must reach across society, allowing the general public to consume climate intelligence and hold policymakers to account.

Background

The twenty-first century presents globalized threats that will require globalized solutions, the greatest of which is climate change. As the Covid-19 pandemic has demonstrated, no country is immune from actor-less threats like novel disease outbreaks and climate change. When combined with other security threats like transnational terrorism and ubiquitous cyberattacks, it becomes clear that existing national security frameworks are insufficient. New relationships and lines of communication will need to be forged, both within the U.S. government, in the private sector, and internationally with allies and adversaries. The U.S. IC needs to determine the requirements of its customers regarding climate change and how its unique collection and analytical capabilities fit into this new mission space.

The IC has incorporated climate change into its analysis and threat assessments for decades, but climate has not received the attention it requires given the magnitude of the threat it poses. On January 27, 2021, President Biden issued an executive order on tackling the climate crisis at home and abroad, establishing that “climate considerations shall be an essential element of United States foreign policy and national security.” The order also called for the Director of National Intelligence to prepare a National Intelligence Estimate on the national and economic security impacts of climate change within 120 days.

The Climate Change, Intelligence, and Global Security conference at Harvard’s Belfer Center earlier this year, brought together senior climate experts, current and former intelligence officers, and leaders in the private sector and academia to discuss the climate threat and generate innovative ideas on role the IC will play in combatting that threat. Led by Paul Kolbe, Director of the Intelligence Project, Kristin Wood, Intelligence Project Non-Resident Fellow, and Erin Sikorsky, Deputy Director of the Center for Climate and Security, the conference facilitated an urgent opportunity for productive dialogue on the climate threat.

Climate change as a threat to international security

Policymakers and the public need to understand that climate change impacts seemingly unrelated challenges and magnifies existing threats. The direct effects of climate change are readily apparent around the world—melting glaciers, rising sea levels, thawing permafrost, longer droughts, hotter heat waves, persistent wildfires, torrential rains, and catastrophic storm systems. These effects create disastrous consequences for humans like crop failures, fishery collapses, water insecurity, and the inundation of coastal regions, all of which lead to mass migration and displacement. These situations lead to fragile states and regions where increased conflict over scarce resources allows malign actors thrive. In this way, climate change is a threat multiplier that touches every aspect of international security.

Professor John P. Holdren, the Teresa and John Heinz Professor of Environmental Policy at Harvard Kennedy School, noted that the big picture on how climate change will impact the planet is clear, but the detailed effects are difficult to predict with precision and confidence, in part because we do not know exactly how human societies will react. This uncertainty exacerbates the security threat posed by climate change. We know it will increase the number of displaced persons in the world, but we do not know when they will be displaced, how many there will be, or where they will go.

Climate change also impacts the effective functioning of the U.S. military: to meet traditional security threats and protect Americans at home and abroad. U.S. bases around the world function as launching pads for everything from quick tactical operations to large-scale disaster relief missions. When severe weather damages those bases or limits their ability to operate at full capacity, America’s security is put at risk. Disasters like the flooding at Offutt Air Force Base in Nebraska, headquarters for U.S. Strategic Command, and Hurricane Michael’s destruction of Tyndall Air Force Base in Florida show that this threat knows no geographic bounds. Their effects are costly as well—the Air Force requested nearly $5 billion to rebuild those two bases alone.

The overall impacts of climate change on international security are inevitable, consequential, and predictable. Previously the U.S. government has undertaken more extensive, and expensive, actions on the basis of proportionally less intelligence about security threats. The U.S. IC must give climate change the proportional attention it deserves.

Role of U.S. intelligence in addressing climate change

Climate change poses an existential, global, non-state security threat, making it fundamentally different from past threats. Its unprecedented nature will require unprecedented thinking by the U.S. IC and requirements from it. Former Principal Deputy Director of National Intelligence Sue Gordon stated clearly that it is not enough to just say that the U.S. IC should focus more on climate— rather, the challenge lies in determining what its specific contribution will be, and then evaluating what changes need to occur to make that contribution happen. Answering these questions will require difficult, but necessary, upfront work. Without that work, the U.S. IC is likely to lead with its current capabilities, rather than identifying and developing capabilities needed to meet the nature of the new threat we face.

The U.S. IC must play to its strengths in carving out its climate mission. Intelligence is no longer just about stealing secrets; it is about providing policymakers with decision advantages to influence events, which is the same as the past, but with a key difference that doing so now requires mastery of is a vast eco-space of openly-available information. To accomplish its mission, the U.S. IC must leverage its analytic tradecraft to present objective assessments about climate change to policymakers. This means collecting intelligence, assessing it, removing bias, and delivering timely and relevant assessments to customers. The U.S. IC must also leverage its global relationships with partners and competitors in performing these tasks. These relationships lie below politics and can help elicit understanding that allows policymakers to distinguish facts on the ground from prevailing political rhetoric of the day.

The U.S. IC’s workforce and technology will need to advance and adapt to serve the climate mission. It does not need to have the foremost climate experts, but it does need to have dialogue with them, and develop its own climate expertise. Like other threats, the IC needs personnel that are devoted to understanding this new threat and understand its place in larger risk frameworks. Predictive models are critical to understanding climate science, and the IC should invest more resources into artificial intelligence and machine learning capabilities (AI/ML) that can inform them. Intelligence professionals will not need to advance science, and scientists will not need to assess national security; but collaborations between the IC and the federal science community are necessary and will benefit both by allowing them to identify and meet shared objectives.

Climate change intelligence cannot be siloed. As DNI Haines promised, it must be integrated into traditional security threat assessments, and those emerging threats from other globalized challenges, bio-hazards, cyber capabilities, and weaponized information, if we want to understand how they interact and manifest around the globe. Compared to the twentieth century, when intelligence was dominated by governments, the twenty-first century offers more democratic forms of intelligence: the private sector offers major capabilities to collect and analyze intelligence. It has disrupted and transformed the nature of intelligence. The IC’s advantage in this new environment will come from thinking deeply about these issues and using its unique analytical and collection capabilities to identify patterns and trends others might overlook.

The future of intelligence cooperation and climate change

Climate change is an indiscriminating challenge unlike anything humanity has encountered before. Understanding how it is different helps illustrate the need for intelligence cooperation among states, large and small, to combat it. Carol Dumaine, Senior Fellow at the Atlantic Council, noted that the impact of the Covid-19 pandemic has highlighted many of the ways in which the climate threat is unique. It is non-state, non-adversarial, non-linear, boundary-less, and its root causes can be found in human economic activity. Unlike pandemics, however, combatting climate change will require something we have never done: decades of consistent cooperation across states with an eye towards tackling a systemic problem that will persist for centuries.

The U.S. IC needs to determine how it will work with other countries to combat the shared threat of climate change. The big first step is determining what the security collective is trying to accomplish. One area ripe for collaboration is foresight and early warning systems. During the Cold War the famous “red telephone” connected the White House and the Kremlin, enabling direct communication to avoid nuclear brinksmanship. Similar innovate thinking will be needed on climate change cooperation. Lt. Gen. Richard Nugee, Climate Change and Sustainability Strategy Lead for the UK Ministry of Defence, emphasized that the biggest danger on climate change is not a morass of bureaucracy, but instead a lack of imagination in understanding its impact and generating solutions for it.

Relying on existing partnerships, such as the Five Eyes alliance or NATO, will not be sufficient. Those agreements will play a role, but they do not include some of largest contributors to greenhouse gases or the countries that will suffer the largest initial impacts from climate change. Intelligence communities are by nature competitive and adversarial, but when it comes to climate change they will need to be cooperative. The U.S. IC needs to identify areas of cooperation even with adversaries like China and Russia. Rolf Mowatt-Larssen, Senior Fellow and former Director of the Intelligence Project, tasked the U.S. IC to look for a peace dividend—areas where collaboration on climate will yield multilateral benefits. Even though spying will still exist, as it always had, we cannot let espionage stand in the way of climate collaboration.

Any collaboration on climate intelligence will certainly require American leadership. That means America needs to treat the climate threat with the seriousness it deserves. Climate change is siloed into a one-page length analysis in the 27-page Annual Threat Assessment issued by the Office of the Director of National Intelligence in April 2021. The six pages focusing on China and Russia make no mention of how those are contributing to climate change or working to combat it. The IC must continually reinforce that climate is a serious and central threat. We cannot wait until the impacts are painfully obvious for every individual across the globe to treat it with the seriousness it requires.

The private sector, intelligence, and climate change

The threat from climate change reinforces the fact that intelligence is no longer a domain solely for governments. Mekala Krishnan, Partner at the McKinsey Global Institute, underscored that the private sector is also seeking to take climate risk out of a sustainability silo and integrate it into all aspects of decision making affected by risk and finance. Companies are thinking about how climate interacts with physical capital, natural resources, labor supply, and food supply—the factors of production in an economy that fundamentally affect our lives and livelihoods. One of the most important factors in a country’s national security is the health of its economy. The U.S. IC needs to be working with the private sector to understand what the economic effects of climate change will be.

In many respects, the U.S. government is still one of the few parties that can afford the costs to collect data on climate change, much like space exploration and early Internet research. The private sector can innovate ways to extract insights from that public data. Harnessing that with government capabilities will require innovative public-private partnerships with a shared strategy to help combat climate change. The U.S. IC must develop a level of transparency on climate data that will allow the private sector to identify where incentives for research and development exist. It will not matter how good the climate intelligence collected by the U.S. IC is if it does not get into the hands of public and private users in the right shape and form.

At the same time, the IC cannot be everywhere at once, collecting troves of climate data at significant cost. Richard Jenkins, CEO of Saildrone, noted that the private sector has the capability to deploy significant private money to develop and test new technologies that advance climate data collection, which the government can purchase at great value and incorporate into climate intelligence analysis. New technology is democratizing intelligence; it will force the U.S. IC to change how it interacts with the private sector— for the better.

Conclusion

In a moderated discussion with Dr. Calder Walton, Secretary Kerry stated unambiguously that the U.S. IC needs to start providing policymakers with a decision advantage on climate change in order for the U.S. government to lead the world on meeting this unprecedented threat. That starts with treating climate change seriously. The U.S. IC will need to determine its requirements, play to its strengths, and adapt its workforce to best serve its mission. It will need to cultivate deeper cooperation with allies and adversaries, develop new relationships with the private sector, and approach climate change with a fresh mindset to seek and find what others overlook.

When it comes to climate change, the U.S. IC should also reframe who its customers are, not just policymakers, to whom it gives secret briefings, but also the public. By publicly disseminating assessments, the U.S. IC can effectively democratize intelligence about climate change, with the public holding policymakers to account for their actions or inactions on the basis of shared intelligence.

The Cipher Brief is proud to be continuing our coverage on Climate with a series of webcast briefings beginning in July 2021.

Read also:

The Climate and US National Security Conversation with Admiral Jim Stavridis (Ret.)

How to Integrate Climate in Future National Security Risk

Russia’s Climate Problem and Opportunity

Why the Intelligence Community Needs a Climate Change Task Force

 

The post Defining the IC’s Mission Space for Climate Change appeared first on The Cipher Brief.

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French luxury giant Dior has taken down a controversial photograph that had been criticized in China for “smearing Asian women” by pandering to Western stereotypes while “distorting Chinese culture.”

The photo, which was part of the brand’s ‘Lady Dior’ exhibition in Shanghai, depicts an Asian model wearing a traditional dress and clutching a Dior handbag. It came under fire this week from Chinese media outlets for featuring “spooky eyes, [a] gloomy face and Qing Dynasty-styled nail armor.”

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Although Dior has not released a statement regarding the controversy, it confirmed to fashion trade publication Business of Fashion that the photo had been removed from the exhibition. The brand has also reportedly taken the photo off Chinese social media platform Weibo.

The image, which was shot by Chinese photographer Chen Man, had drawn both media ire and public outrage. However, there were apparently no calls for a boycott of the brand.

In an editorial on Monday titled “Is This the Asian Woman in Dior’s Eyes?”, the Beijing Daily paper had noted that the image makes Chinese consumers uncomfortable. The publication criticized Man for “playing up to the brands, or the aesthetic tastes of the Western world.”

For years, Asian women have always appeared with small eyes and freckles from the Western perspective, but the Chinese way to appreciate art and beauty can’t be distorted by that.

Warning that both the brand and the photographer had “gone too far,” the China Women’s News paper ran an editorial on Wednesday that claimed it “indicated their intention of uglifying Chinese women and distorting Chinese culture.”

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“Again, from… Dior’s ghost-style picture, which makes the public feel uncomfortable, it’s easy to see some Western brands’ ‘pride and prejudice’ in their aesthetics and culture,” said the newspaper, which is run by the All-China Women’s Federation.

Meanwhile, the Global Times noted that the “lingering controversy could pose a delicate situation” for Dior and other global brands – for whom China’s “massive” luxury market was one of the biggest sources of revenue. The paper said that the Chinese public had become “increasingly sensitive” toward the depiction and treatment of Chinese people and culture by foreign companies.

While pointing out that Chinese social media users had demanded the company and photographer explain their intention, a number of media outlets also highlighted how some netizens had praised the photo as a departure from typical standards of beauty in the country, often characterized by “fair skin and large eyes.”

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