Brazil recorded the most deforestation ever in the Amazon rainforest for the month of January, according to government data on Friday, as destruction continues to worsen despite the government's recent pledges to bring it under control.
Deforestation in Brazil's Amazon totalled 430 square kilometres (166 square miles) last month, 5 times higher than January 2021, according to preliminary satellite data from government space research agency Inpe.
That's the highest since the current data series began in 2015/2016, equal to an area more than seven times the size of Manhattan.
Environmental researchers said they were not surprised to see destruction still rising, given right-wing President Jair Bolsonaro's weakening of environmental protections.
With little fear of punishment, speculators are increasingly clearing forest for ranches in illegal land grabs, said Britaldo Soares Filho, an environmental modelling researcher at the Federal University of Minas Gerais. High prices for beef, soy and other commodities are also boosting the demand for cheap land.
"People might be surprised that it didn't increase even more," Mr Soares Filho said.
"There is a race to deforest the Amazon."
Mr Bolsonaro's office and the Environment Ministry did not immediately respond to request for comment on the deforestation figures or the government's environmental policies.
The preservation of the Amazon, the world's largest rainforest, is vital to curbing climate change because of the vast amount of greenhouse gas absorbed in its trees.
There is a race to deforest the Amazon
Britaldo Soares Filho
Mr Bolsonaro has long argued for more commercial farming and mining in the Amazon to help lift the region out of poverty.
Facing international pressure from the United States and Europe, Brazil last year pledged to end illegal deforestation by 2028 and signed a global pact to stop all forest destruction by 2030.
Soon after those commitments, Inpe released data showing that deforestation in 2021 in the Brazilian Amazon hit the highest point in 15 years. The preliminary data for January shows the destruction is continuing to mount.
Ana Karine Pereira, a political scientist at the University of Brasilia, said while Mr Bolsonaro and his government changed their tone last year, their policies remain the same.
Mr Soares Filho and Ms Pereira said deforestation will only stop rising if Mr Bolsonaro loses the presidential election in October.
High deforestation is unusual in the current rainy season, when the rainforest is harder for loggers to access. The January data showed that new clearing was still less than half of what is common during the peak months from June to September.
How to help
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
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.”
'THE WORST THING YOU CAN EAT'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
