It could cost more than $130 billion a year to end deforestation by the end of this decade, a report by a group of financiers, energy industry executives and academics has found.
The Energy Transitions Commission, which counts senior BP and BlackRock employees among its members, said the analysis was an estimate of the funds needed “to overcome the economic incentive to cut down trees”.
The forecast is based on an analysis of the volume of grants or other forms of so-called concessional finance that would be needed to pay landowners not to engage in deforestation.
Financing forest preservation requires a different approach to investing in the decarbonisation of heavy industry or energy systems, said Adair Turner, the former City of London finance regulator who now leads the ETC.
Instead of the regular debt and equity financing that are used to electrify the power grid or develop new green steel plants, avoiding deforestation requires “a different category of financial flow”, namely “paying somebody not to do something” without expecting a direct rate of return, Mr Turner said.
The three most likely sources for these grant-based funds are governments that allocate money to protect forests, philanthropic support and carbon credits, he said.
For companies that have set science-based net-zero goals, buying carbon credits on the way to net zero can be an important method for supporting forest conservation, he said.
Without a "significant flow” of grant payments this decade, any reduction in deforestation would come "too late to make it possible to limit global warming to well below 2°C, let alone to 1.5°C", the ETC said.
Since 2018, 3.2 million hectares of primary forest have been lost each year from non-fire related causes, which is equal to a rate of 10 football pitches lost every minute, ETC said.
A separate academic paper published on Wednesday found that companies could have an effect on deforestation.
The researchers found 7,000 square kilometres of Amazon rainforest were spared between 2010 and 2018 thanks to commitments signed by companies under the G4 initiative, which was created following direct pressure from environmental non-profit group Greenpeace.
The area is equal to 15 per cent of the deforestation due to cattle farming that would have occurred during the period, models showed.
Cattle production is responsible for more than 70 per cent of Amazon deforestation, so if all companies signed and introduced zero-deforestation commitments, up to 24,000 square kilometres of rainforest would be conserved.
“Even reducing deforestation by 15 per cent is a huge amount,” said Rachael Garrett, a professor at the University of Cambridge Conservation Research Institute and senior author of the report.
“If enough countries join the UK and EU in purchasing only deforestation-free beef, it’s likely to have a positive impact on the planet by reducing deforestation.”
But deforestation commitments alone are not enough, the study found.
Less than 1 per cent of Brazilian cattle production is exported to the EU, the largest market where policies have been considered to date.
By contrast, 81 per cent of production between 2015 and 2017 was consumed domestically, where restrictions and public pressure have historically been lower.
Still, increasing involvement by Brazil's three leading supermarket chains — Carrefour, Walmart and GPA — put pressure on the local market, even during Jair Bolsonaro’s presidency, the academic study said.
For companies, there may be financial benefits to protecting forests and other natural ecosystems such as higher credit ratings, research from Bank of America analysts found.
Businesses with lower biodiversity risk scores are likely to be rated BBB+ or higher, while those that take measures to restore nature also may face lower financing costs, the bank’s ESG (environmental, social and governance) strategists led by Dimple Gosai wrote in a report published last week.
Biodiversity is a large driver of financial stability for companies, particularly in the energy, materials and commodity-orientated industries, they said.
Global assets in biodiversity-related investments may rise 20-fold to more than $400 billion by 2030, the strategists said.
Investors are already channelling money to things including alternative proteins and food waste-saving technology, and new projects such as land restoration and sustainable fisheries are attracting capital from impact investors, social enterprises and investments that blend public and private money, they said.
Putting an end to deforestation would represent a major step towards preserving nature and limiting the increase in global temperatures.
Deforestation, which involves clearing land for farms, ranches, timber and urban use, is responsible for about 15 per cent of the world’s carbon dioxide emissions, and the global economy will not reach net-zero carbon emissions without putting an end to the practice.
Still, finding sufficient funds will be difficult, the ETC said.
The commission said the $130 billion figure represents a sum of money, in the form of grant payments, that “could make an important contribution to avoiding deforestation”.
The cost of putting a “permanent stop” to all deforestation by 2030 could be as much as $900 billion a year.
In either case, the order of magnitude is so far in excess of current financing for forest protection, which ETC puts at about $3 billion a year.
Financial solutions to deforestation will be nothing more than a stopgap without changing the underlying forces that make deforestation economically viable, Mr Turner said.
Consumers need to take action by curtailing their demands for meat and palm oil, while governments should outlaw deforestation and enforce it, he said.
“Unless you find a way to switch off the fundamental demand drivers that are driving deforestation, paying people not to deforest is like pushing water uphill,” Mr Turner said.
AUSTRALIA SQUAD v SOUTH AFRICA
Aaron Finch (capt), Shaun Marsh, Travis Head, Chris Lynn, Glenn Maxwell, D'Arcy Short, Marcus Stoinis, Alex Carey, Ashton Agar, Mitchell Starc, Josh Hazlewood, Pat Cummins, Nathan Coulter-Nile, Adam Zampa
Multitasking pays off for money goals
Tackling money goals one at a time cost financial literacy expert Barbara O'Neill at least $1 million.
That's how much Ms O'Neill, a distinguished professor at Rutgers University in the US, figures she lost by starting saving for retirement only after she had created an emergency fund, bought a car with cash and purchased a home.
"I tell students that eventually, 30 years later, I hit the million-dollar mark, but I could've had $2 million," Ms O'Neill says.
Too often, financial experts say, people want to attack their money goals one at a time: "As soon as I pay off my credit card debt, then I'll start saving for a home," or, "As soon as I pay off my student loan debt, then I'll start saving for retirement"."
People do not realise how costly the words "as soon as" can be. Paying off debt is a worthy goal, but it should not come at the expense of other goals, particularly saving for retirement. The sooner money is contributed, the longer it can benefit from compounded returns. Compounded returns are when your investment gains earn their own gains, which can dramatically increase your balances over time.
"By putting off saving for the future, you are really inhibiting yourself from benefiting from that wonderful magic," says Kimberly Zimmerman Rand , an accredited financial counsellor and principal at Dragonfly Financial Solutions in Boston. "If you can start saving today ... you are going to have a lot more five years from now than if you decide to pay off debt for three years and start saving in year four."
THE%20SPECS
%3Cp%3EBattery%3A%2060kW%20lithium-ion%20phosphate%3Cbr%3EPower%3A%20Up%20to%20201bhp%3Cbr%3E0%20to%20100kph%3A%207.3%20seconds%3Cbr%3ERange%3A%20418km%3Cbr%3EPrice%3A%20From%20Dh149%2C900%3Cbr%3EAvailable%3A%20Now%3C%2Fp%3E%0A
THE SPECS
Engine: 3.5-litre V6
Transmission: six-speed manual
Power: 325bhp
Torque: 370Nm
Speed: 0-100km/h 3.9 seconds
Price: Dh230,000
On sale: now
Surianah's top five jazz artists
Billie Holliday: for the burn and also the way she told stories.
Thelonius Monk: for his earnestness.
Duke Ellington: for his edge and spirituality.
Louis Armstrong: his legacy is undeniable. He is considered as one of the most revolutionary and influential musicians.
Terence Blanchard: very political - a lot of jazz musicians are making protest music right now.
The biog
Profession: Senior sports presenter and producer
Marital status: Single
Favourite book: Al Nabi by Jibran Khalil Jibran
Favourite food: Italian and Lebanese food
Favourite football player: Cristiano Ronaldo
Languages: Arabic, French, English, Portuguese and some Spanish
Website: www.liliane-tannoury.com
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
More from Rashmee Roshan Lall
The years Ramadan fell in May
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
Zimbabwe v UAE, ODI series
All matches at the Harare Sports Club:
1st ODI, Wednesday, April 10
2nd ODI, Friday, April 12
3rd ODI, Sunday, April 14
4th ODI, Tuesday, April 16
UAE squad: Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Shaiman Anwar, Mohammed Usman, CP Rizwan, Chirag Suri, Mohammed Boota, Ghulam Shabber, Sultan Ahmed, Imran Haider, Amir Hayat, Zahoor Khan, Qadeer Ahmed
FIXTURES
Thu Mar 15 – West Indies v Afghanistan, UAE v Scotland
Fri Mar 16 – Ireland v Zimbabwe
Sun Mar 18 – Ireland v Scotland
Mon Mar 19 – West Indies v Zimbabwe
Tue Mar 20 – UAE v Afghanistan
Wed Mar 21 – West Indies v Scotland
Thu Mar 22 – UAE v Zimbabwe
Fri Mar 23 – Ireland v Afghanistan
The top two teams qualify for the World Cup
Classification matches
The top-placed side out of Papua New Guinea, Hong Kong or Nepal will be granted one-day international status. UAE and Scotland have already won ODI status, having qualified for the Super Six.
Thu Mar 15 – Netherlands v Hong Kong, PNG v Nepal
Sat Mar 17 – 7th-8th place playoff, 9th-10th place playoff
Mohammed bin Zayed Majlis
The Florida Project
Director: Sean Baker
Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe
Four stars
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
COMPANY PROFILE
Company name: BorrowMe (BorrowMe.com)
Date started: August 2021
Founder: Nour Sabri
Based: Dubai, UAE
Sector: E-commerce / Marketplace
Size: Two employees
Funding stage: Seed investment
Initial investment: $200,000
Investors: Amr Manaa (director, PwC Middle East)
