A farmer carries a bundle of wheat on a farm in the Nile Delta province of Al Sharqia, Egypt. AP
A farmer carries a bundle of wheat on a farm in the Nile Delta province of Al Sharqia, Egypt. AP
A farmer carries a bundle of wheat on a farm in the Nile Delta province of Al Sharqia, Egypt. AP
A farmer carries a bundle of wheat on a farm in the Nile Delta province of Al Sharqia, Egypt. AP


Innovation is at the heart of tackling climate change, but it costs money


Mariam Al Mheiri
Rodger Voorhies
  • English
  • Arabic

November 22, 2024

One year ago, the UAE’s Cop28 presidency placed food systems at the centre of global climate action. The UAE and a broad coalition of global partners mobilised the political support of 160 heads of state and government to adapt and transform their food systems to respond to the imperative of climate change.

With climate finance now the focus of global attention at Cop29, agricultural and food systems transformation, particularly for smallholder farmers who collectively feed billions of people, stands out as one of the most urgent and effective investments that can be made.

Floods, droughts and heatwaves are devastating crop yields in many of the world’s most vulnerable countries, many of which experienced at least one month of extreme drought in 2023. Such increases in adverse climate shocks and weather are becoming persistent and severe; a dire “new normal” that threatens to push an additional 40 million Africans into extreme poverty by 2030.

The negative impacts on health and nutrition will also be high. Research shows that by 2050, rising CO2 levels will reduce the zinc content in essential crops by up to 10 per cent, iron by 5 per cent and protein by 8 per cent – nutrients crucial for child development, maternal health and the ability to fight off disease.

In this context, successful agricultural adaptation strategies will be critical to ensuring climate-vulnerable people are able to improve their lives and livelihoods in the face of deteriorating conditions.

Agricultural adaptation takes many forms around the world, but nearly all of them rely somehow on harnessing the power of innovation.

Among them are: using digital soil maps that can guide restoration of degraded lands; cultivating lesser-known local crops that thrive in harsh conditions; planting crops bred for drought and flood tolerance and high nutrition; and raising indigenous livestock breeds that have adapted to extreme heat.

Isolated partnerships, however successful, cannot achieve the scale of change needed

Dozens of such solutions have been developed by national agricultural research centres in partnership with the global research network Consultative Group on International Agricultural Research, whose roadmap for climate-smart solutions could reach 500 million farmers by 2030, potentially reducing agricultural emissions by one gigaton annually.

But, as promising as these solutions are, they have yet to reach the vast majority of smallholder farmers, and the gulf between available climate finance and actual needs is staggering. Only 4 per cent of climate finance flows to food-related projects globally, and a mere 1 per cent addresses climate threats to smallholder farmers. Supporting agricultural adaptation in developing countries will require up to $850 billion by 2030, but the return is clear: just $16 billion a year could save 78 million people from chronic hunger.

Now, less than a year after the UAE and the Bill and Melinda Gates Foundation cemented a new partnership, we have launched two wide-reaching initiatives with the potential to benefit millions in farming communities around the world. A new AI initiative will develop open-access large language models to support farmers and agricultural extension agents with decision-making.

Built using the UAE’s open-access Falcon technology, and anchored in a close collaboration with the world’s leading international organisations focused on food and agriculture, including CGIAR, the Food and Agriculture Organisation, the World Bank and the International Fund for Agricultural Development, the “AgriLLM” will be a pioneering first effort to ensure that the power of generative AI serves the unique needs of smallholder producers in low and middle-income countries ethically and equitably.

Meanwhile, our new AIM for Scale Weather Partnership will scale access to improved weather information to farmers in low and middle-income countries, in partnership with leading development banks, technical partners and AI engineers. When it comes to investing in farmers’ access to reliable weather information, the evidence is clear that the benefits can far outweigh costs, and in some cases by as much as 100 times.

A man living in south-western Mali lost his eyesight more than 30 years ago due to river blindness. Photo: End Fund
A man living in south-western Mali lost his eyesight more than 30 years ago due to river blindness. Photo: End Fund

Following initial pilot activities in partnership with the Indian government during this year's monsoon season, the AIM for Scale weather partnership will seek to expand its reach to tens of millions of farmers in India by the end of next year, and then millions more in Africa, other parts of Asia and Latin America, where half of the populations currently lack access to reliable weather forecasting.

These innovation partnerships are being developed as global public goods, ensuring equitable access to transformative technology.

But climate change is inextricably linked not only to agriculture but also to poverty and diseases that affect millions, particularly in low-income countries. Global warming is driving the spread and shift of infectious diseases into new regions, straining health systems and putting already vulnerable populations at risk. Among the growing threats are neglected tropical diseases, which impact many countries that depend heavily on local smallholder farm production.

Recognising these connections, another group of partners joined forces at Cop28 to pledge a collective $777 million towards combatting NTDs globally. This included the expansion of the Reaching the Last Mile Fund, a donor collaborative founded by President Sheikh Mohamed in partnership with the Gates Foundation, from $100 million to a landmark $500 million.

By working hand in hand with countries, the Fund seeks to eliminate two NTDs – lymphatic filariasis and river blindness – from the continent of Africa, freeing tens of millions of people from the threat of these devastating but preventable diseases.

Such progress in global health and development shows what's possible when governments, philanthropy, the private sector and global institutions work together, and hundreds of powerful partnerships operate across the Global South. But isolated partnerships, however successful, cannot achieve the scale of change needed.

As climate change continues to devastate crops and amplify disease burden in the world's most vulnerable regions, we need broader commitment – particularly from countries that have contributed most to this crisis. New agreements must dramatically increase funding for proven solutions without adding to developing countries' debt burden.

Mariam Almheiri is head of the International Affairs Office of the Presidential Court and Council Member of the International Humanitarian and Philanthropic Council

Rodger Voorhies is president of global growth and opportunity at the Bill and Melinda Gates Foundation

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: November 24, 2024, 3:26 PM