Axios

Smoke from devastating wildfires burning from California to British Columbia has traveled all the way across the Atlantic Ocean, having hitched a ride with west-to-east moving storm systems.

Why it matters: The sighting of North American wildfire smoke in Western Europe indicates how major disasters in one country can affect people thousands of miles away.

Of the $337 billion in insured losses from disaster events in 2017, $330 billion was caused by natural catastrophes, marking a nearly 90% increase from the previous 10-year average. If 2017 was an annus horribilis for the world and the risk-finance industry, which covered $144 billion of these losses, 2018 is on track to be even worse, since this is the year insurers will directly incur these costs on their balance sheets.

The big picture: Research shows that the world’s cities can expect on average $320 billion in lost economic productivity each year because of climate-related risks — climate change, floods, droughts, wild fires and heat-island effect, among others. Meanwhile, because more than 60% of these direct and indirect costs are not typically covered by insurance, insurers and public finance are in retreat as suppliers of last resort. For example, 60% of FEMA claims in Puerto Rico have been denied. Even against predictable threats like floods, earthquakes and wildfires, the protection gap is massive.

Hundreds are dead, and more than 150,000 have reportedly fled historic flooding in the southern Indian state of Kerala. The rains are the result of a relentless, seemingly stuck monsoon, which is causing the worst flooding the state has seen in decades, if not longer.

Why it matters: The Indian Monsoon is one of the most important climate cycles on the planet, responsible for feeding one of the world's most populous nations. But the downpours that sweep in from the Indian Ocean can be ruinous when they repeatedly pelt one area. In this case, Kerala has received 41% more rainfall than average for the year so far, much of it coming in the past few weeks.

Tesla CEO Elon Musk gave a lengthy interview to the NY Times, in which he acknowledges that he's spread way too thin. But it was the Times reporting vs. what Musk said, plus its conflating his messy personal life with his professional life, that was most notable.

By the numbers: Tesla's stock is getting walloped after the interview came out, down nearly 9% from yesterday's close to about $307 as of publish time.

Elon Musk, in his first interview since the tumult exploded around his plans to take Tesla private, tells the The New York Times that the past year "has been the most difficult and painful year of my career. It was excruciating."

Why it matters: Beyond providing a window onto Musk's state of mind, the Times' reporting provides updates into Tesla's inner workings and the take-private announcement that's under investigation by securities regulators.

In June, President Trump proposed a large-scale intervention by the federal government into competitive electricity markets to bail out select coal and nuclear power plants struggling to compete. The president has claimed that a bailout is justified on national security grounds.

Why it matters:  President Trump’s proposal would undermine electricity markets and cost Americans billions of dollars, but do nothing to address the real security threats facing the grid.

Tesla Motors has been subpoenaed by U.S. securities regulators, related to Tesla CEO Elon Musk's efforts to take the company private.

Why it matters: Musk is one of America's most consequential tech executives. Not only because of his unparalleled audacity and futuristic vision, but also because he has no clear successor at his largest company, Tesla. Now, both Musk's and Tesla's futures are at risk.

Scientists announced today they have mapped out more than 94% of the genome of Chinese Spring bread wheat — adding that by manipulating its genetic code, people could eventually improve global food security and possibly alleviate some immune disorders like celiac disease or wheat allergies.

Why it matters: According to the new research, by 2050, the world is expected to have around 9.8 billion people (up from 7.6 billion today). As the staple of more than a third of all people, this means wheat productivity must increase by 1.6% each year — but rather than farming more scarce land, the researchers hope wheat genes can be manipulated to enhance nutrition, improve sustainability and production, and lessen immune reactions.

The Environmental Protection Agency will propose a replacement regulation as soon as next week for President Obama's signature climate-change rule, reports Timothy Gardner of Reuters.

Why it matters: The rule's original goal was to cut carbon dioxide emissions from coal-fired power plants 32% by 2030 based on 2005 emission levels, and was the cornerstone of Obama's pledge in the Paris climate deal. President Trump's replacement has been anticipated for many months and is said to be less stringent and will grant states the ability to write their own individual regulations.

In the tropical waters of the equatorial Pacific Ocean, conditions appear to be primed for the development of an El Niño event, with potentially far-reaching consequences.

Why it matters: If an El Niño does develop, even a weak one, it could influence weather patterns around the world — from increasing the odds of above-average winter precipitation in California to favoring drought conditions in Indonesia. It could also provide a natural boost to global average surface temperatures, nudging 2018 and possibly 2019 further up the ladder of the hottest years on record.

During an appearance on Fox Business on Thursday morning, Interior Secretary Ryan Zinke broke sharply with the scientific consensus regarding mankind's role in climate change.

Why it matters: Zinke oversees the agency that manages U.S. public lands, many of which are currently burning due to hotter, drier weather that scientists say is part of long-term climate change. How he views climate science findings will help inform his approach to managing our forests and national parks.

The internet connectivity built into most new vehicles enables all sorts of conveniences — news, entertainment, weather and even over-the-air software updates from the manufacturer. The downside: Connected cars are incredibly easy to hack.

The big picture: With 16 million new cars and trucks sold every year in the U.S., these cybersecurity risks are already extensive and will only grow as the push toward autonomous vehicles continues.

Yesterday's Gulf of Mexico lease sale drew $178 million in winning bids from oil companies, spanning 144 tracts in the region that cover around 800,000 acres.

The big picture: The total was very modest by comparison to many sales in the past, including auctions in the mid-2000s, when high oil prices led to high bids totaling several billion dollars.

The amount of water needed for new oil and gas wells developed via fracking has surged in recent years — and it's slated to keep rising — Duke University researchers conclude in a new paper.

Why it matters: It underscores resource challenges, especially in arid regions like West Texas that accompany the decade-old boom in fracking and horizontal drilling, which has pushed U.S. oil and gas production to record levels.

If China achieves the targets outlined in its Energy Development Strategy Action Plan, it will become the world's nuclear energy leader and fundamentally change the global trajectory of the nuclear power industry.

The big picture: It's not a foregone conclusion that China will follow through on its plans, especially with the public resistance stemming from the 2011 Fukushima meltdown in Japan. But if Xi Jinping and his administration decide to press on, China will be solidly on track to dominate the nuclear landscape.

Odds favor a return this year of the climate phenomenon known as El Niño — above-average sea surface temperatures in the equatorial tropical Pacific Ocean and related changes in weather patterns.

Why it matters: Depending on their intensity and exact location, El Niño events can alter global weather patterns — favoring above average precipitation in the parched state of California, for example, while inducing drought elsewhere. Typically, such events develop sometime in late summer or early fall, and peak during the winter.