World Bank: Indonesia forest fires cost $5.2bn in economic losses

World Bank: Indonesia forest fires cost $5.2bn in economic losses
The World Bank also estimated a 0.09 and 0.05 percentage points reduction in Indonesia’s economic growth in 2019 and 2020, respectively, due to the fires. (AFP)
Updated 11 December 2019

World Bank: Indonesia forest fires cost $5.2bn in economic losses

World Bank: Indonesia forest fires cost $5.2bn in economic losses
  • Economic losses equal to 0.5 percent of Indonesia’s gross domestic product
  • Drifting smoke at the height of the dry season in September triggered a diplomatic spat between Jakarta and Kuala Lumpur

JAKARTA: The total damage and economic loss from forest fires in Indonesia this year amounted to at least $5.2 billion, equal to 0.5 percent of gross domestic product, the World Bank said in a report on Wednesday.
The estimate was based on its assessment in eight affected provinces from June to October 2019, though analysts at the multinational bank said fires had continued to rage through to November.
“The forest and land fires, as well as the resulting haze, led to significant negative economic impacts, estimated at $157 million in direct damage to assets and $5.0 billion in losses from affected economic activities,” the World Bank wrote in the report.
Over 900,000 people reported respiratory illnesses, 12 national airports halted operations, and hundreds of schools in Indonesia, Malaysia and Singapore had to temporarily close due to the fires.
Drifting smoke at the height of the dry season in September triggered a diplomatic spat between Kuala Lumpur and Jakarta.
More than 942,000 hectares (2.3 million acres) of forests and lands were burned this year, the biggest since devastating fires in 2015 when Indonesia saw 2.6 million hectares burned, according to official figures. Officials said the spike was due to El Nino weather patterns lengthening the dry season.
The World Bank also estimated a 0.09 and 0.05 percentage points reduction in Indonesia’s economic growth in 2019 and 2020, respectively, due to the fires. Its growth forecast for Indonesia is 5 percent for 2019 and 5.1 percent for 2020.
The blazes were “manmade and have become a chronic problem annually since 1997” because fire is considered the cheapest method to prepare land for cultivation, the bank said.
Because about 44 percent of the areas burned in 2019 were in peatlands, carbon emissions from Indonesia’s fires were estimated to be almost double the emissions from the fires in the Brazilian Amazon this year.
The European Center for Medium Range Weather Forecast estimated a total of 720 megatons of CO2 emissions came from Indonesian forest fires in January-November this year.
Longer-term effects of repeated fires were not included in this estimate, the World Bank said. Repeated haze exposure would reduce health and education quality and damage the global image of palm oil — an important commodity for Indonesia.


Blow to global vaccine drive as Pfizer delays deliveries

Blow to global vaccine drive as Pfizer delays deliveries
Updated 15 January 2021

Blow to global vaccine drive as Pfizer delays deliveries

Blow to global vaccine drive as Pfizer delays deliveries
  • Pfizer said the modifications at the Puurs factory were necessary in order to ramp up its production capacity from mid-February of the vaccine
  • There will be “a significant increase” in deliveries in late February and March, the US group promised

BERLIN: A global coronavirus vaccine rollout suffered a major blow Friday as Pfizer said it would delay shipments of the jabs in the next three to four weeks due to works at its key plant in Belgium.
Pfizer said the modifications at the Puurs factory were necessary in order to ramp up its production capacity from mid-February of the vaccine developed with Germany’s BioNTech.
There will be “a significant increase” in deliveries in late February and March, the US group promised. The European Commission also confirmed that promised doses for the first quarter will arrive within the period.
But European Union nations, which are desperately waiting for more doses to immunize their populations against the virus that has already claimed almost two million lives worldwide, expressed frustration.
Germany, the EU’s biggest economy, voiced regret over the “last minute and unexpected” delay.
It urged the European Commission — which undertook joint procurement for the bloc — to “seek clarity and certainty” for upcoming shipments.
Six northern EU nations also warned in a letter to the Commission that the “unacceptable” situation “decreases the credibility of the vaccination process.”
The letter signed by ministers from Denmark, Estonia, Finland, Latvia, Lithuania and Sweden further asked the Commission to “demand a public explanation of the situation” from the pharmaceutical companies.
Across the Atlantic, Canada also said it was impacted by the delays, calling it “unfortunate.”
“However, such delays and issues are to be expected when global supply chains are stretched well beyond their limits,” said Canada’s Procurement Minister Anita Anand.
Pfizer/BioNTech’s vaccine, which was developed at record-breaking speed, became the first to be approved for general use by a Western country on December 2 when Britain gave it the go ahead.
After Britain rolled out its immunization drive, the EU followed from December 27.
The latest shipment delay will likely add fuel to anger over the bloc’s vaccination campaign, which has already been criticized for being too slow compared to the United States or former EU member Britain.
The European Commission has also been accused of not securing enough doses early enough.
Just last week, the EU struck a deal to double its supply of the BioNTech/Pfizer vaccine to 600 million doses.
The urgency of immunizing the population has grown over fears of virus variants first seen in South Africa and Britain, which officials warn are more infectious.
But vaccine makers had repeatedly warned that production capacity was limited.
While Pfizer is augmenting capacity at Puurs, its partner BioNTech on Friday secured authorization to begin production at Germany’s Marburg.
The challenges of getting millions of vaccines around the world are also huge as the BioNTech/Pfizer jabs must be stored at ultra-low temperatures of about minus 70 degrees Celsius (-94 Fahrenheit) before being shipped to distribution centers in specially-designed cool boxes filled with dry ice.
Once out of ultra-cold storage, the vaccine must be kept at two Celsius to eight Celsius to remain effective for up to five days.