The UK “could have done more” in its efforts to protect forests and biodiversity globally, according to a report by the nation’s aid watchdog.
A review by the Independent Commission for Aid Impact (ICAI), published on Thursday, examined how the UK spent £1.2 billion ($1.66bn) over a five-year period between 2015 and 2020 on halting deforestation and preventing irreversible biodiversity loss.
It has graded it as satisfactory and praised some of its aid programmes, including a project to reduce the effect of cocoa production on forests in Ghana, efforts to strengthen land-use planning and security of tenure in Indonesia and its promotion of sustainable ranching to reduce illegal forest clearing in Colombia.
But it has criticised the UK's lack of a “clearly prioritised strategy”, which it says has led to its portfolio being “too widely spread, both geographically and thematically”.
“The UK aid programmes we reviewed are, in general, well directed to tackling the prevailing drivers of deforestation and biodiversity loss and highly relevant to the global challenges facing our planet,” the report concluded.
“Over the review period, the UK has supported a range of delivery models and approaches to addressing deforestation and biodiversity loss. However, this diversity of activities has come about through piecemeal decision-making on individual programmes, rather than as a strategic choice. Given that the aid resources spent by the UK are dwarfed by the scale of the challenge, a more strategic approach to prioritising resources is needed if real impact is to be achieved.”
It also criticised the UK for “not sufficiently” monitoring the impact of programmes on the risks of unintended consequences on forest-dwelling communities and says there is not enough evidence to draw conclusions on the overall impact of the projects.
Global rates of deforestation and biodiversity loss are catastrophic
Dr Tamsyn Barton,
ICAI Chief Commissioner
ICAI Chief Commissioner, Dr Tamsyn Barton, said improvements need to be made if the government is to meet its own targets.
“Global rates of deforestation and biodiversity loss are catastrophic,” she said.
“Between 1990 and 2020, the world lost 178 million hectares of forests each year. The UK has been an active participant in international initiatives to protect forests and biodiversity, spending over £1 billion in aid on protecting forests and biodiversity between 2015 and 2020.
“It is therefore very encouraging to see the positive impact UK aid is having on these two key issues, particularly in the illegal logging and timber trade, and to observe good co-operation between the three government departments.
“However, there is more to be done, especially with regards to measuring the effectiveness of interventions and ensuring a clear strategic focus.
“Overall, we find that the work done over the review period has laid some solid foundations for building an effective portfolio as the government doubles its climate finance, and commits 30 per cent of that funding on nature, but that some improvements will be required, if the programmes are to achieve the government’s policy objectives.”
The watchdog noted that measuring results in the protection of forests and biodiversity is challenging, and that this was an area where the UK could be doing better.
Because of the government’s weaknesses in results measurement, ICAI said it was difficult to reach conclusions on the overall effectiveness of the portfolio.
The ICAI has made five recommendations for the government to improve its approach to tackling these issues.
It calls on the government to have a “tighter strategic focus on concentrating resources to increase the impact” on tackling deforestation and biodiversity loss.
“All programmes addressing deforestation and biodiversity loss should be monitored and evaluated against common, measurable indicators designed specifically for assessing deforestation and biodiversity impacts,” the report says.
The review also advises that regular independent external evaluations of the programmes should be carried out to shape funding decisions and to assess the social effects of the projects to minimise negative impacts on local communities.
It also recommends “greater prioritisation” of gender issues in policies and programming to ensure that women benefit from investments in forestry and biodiversity.
However, it praised the role the UK has played internationally.
“UK efforts to galvanise international action on the drivers of deforestation and biodiversity loss have been effective when structured as a sustained and properly resourced campaign,” it said.
“The UK has played a significant role at a global level in supporting co-ordinated action, helping to secure a number of global commitments.”
The projects are run by the Foreign, Commonwealth and Development Office, the Department for Business, Energy and Industrial Strategy and the Department for Environment, Food and Rural Affairs.
On Tuesday, Prime Minister Boris Johnson saw off a rebellion in parliament and won backing for a contentious cut in foreign aid.
Aid will remain at 0.5 per cent of Britain’s national income – down from the 0.7 per cent threshold in place until earlier this year – after MPs approved the government’s plan by 333 votes to 298.
Ministers said the cut of about £4 billion ($5.53bn) was temporary and would revert to the previous level when public finances recover from Covid-19.
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- Donald Trump - hand-bound leather book with Declaration of Independence
- Melania Trump - personalised Anya Hindmarch handbag
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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.”
A Dog's Journey
Directed by: Gail Mancuso
Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott
3 out of 5 stars
The specs: 2019 Audi A7 Sportback
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MATCH INFO
Syria v Australia
2018 World Cup qualifying: Asia fourth round play-off first leg
Venue: Hang Jebat Stadium (Malacca, Malayisa)
Kick-off: Thursday, 4.30pm (UAE)
Watch: beIN Sports HD
* Second leg in Australia scheduled for October 10
Company info
Company name: Entrupy
Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist
Based: New York, New York
Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.
Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius.
Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place.
What is tokenisation?
Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.
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The specs: 2019 Haval H6
Price, base: Dh69,900
Engine: 2.0-litre turbocharged four-cylinder
Transmission: Seven-speed automatic
Power: 197hp @ 5,500rpm
Torque: 315Nm @ 2,000rpm
Fuel economy, combined: 7.0L / 100km
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The Matrix Resurrections
Director: Lana Wachowski
Stars: Keanu Reeves, Carrie-Anne Moss, Jessica Henwick
Rating:****
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
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