A pledge to phase out coal gained the support of 23 more countries at the UN climate conference on Thursday, but was shunned by big users of the dirtiest of the fuels that cause global warming.
The Cop26 summit hopes to find ways to keep within reach a target of limiting the global temperature rise to 1.5 degrees Celsius, but the scale of the challenge was underlined by a study showing carbon dioxide emissions have returned to near pre-pandemic levels.
Greenhouse gas emissions from burning coal are the single-biggest contributor to climate change, and weaning the world off coal is considered vital to achieving global climate targets.
The pledge to drop coal did not include Australia, India, the United States and China, which has around half the coal-fired plants operating around the world and plans to build more.
Carbon dioxide emissions fell by 5.4 per cent in 2020 as economies ground to a halt, but the new report by the Global Carbon Project forecast a 4.9 per cent rebound in emissions for this year.
"We were expecting to see some rebound," said the report's lead author Pierre Friedlingstein, a climate modelling researcher at the University of Exeter. "What surprised us was the intensity and rapidity."
It was a stark reminder to leaders in Glasgow of the challenge of preventing more than 1.5C of global warming above pre-industrial levels.
The United Nations says a rise above 1.5C would trigger climate impacts far more catastrophic than the intensifying storms, heatwaves, droughts and floods already being seen.
"I think we can say that the end of coal is in sight," Alok Sharma, British president of the two-week summit, said in detailing the pledge to phase out existing coal-fuelled power plants and to stop building new ones.
The non-binding pledge "has 77 signatories, including 46 countries, such as Poland, Vietnam and Chile, 23 of which are making commitments on ending coal for the first time," he said.
Richer nations agreed to quit coal power by the 2030s and poorer ones by the 2040s. Poland said it was aiming for the 2040s - having previously pledged to stop mining coal in 2049. Indonesia did not agree to the part of the deal on ending finance for new coal plants.
Coal-fired power today produces more than a third of the world's electricity. Many developing countries currently rely on cheap, accessible coal to fuel their economies, just as developed countries did from the Industrial Revolution of the 19th century onwards, despite the costs to the environment and public health.
The International Energy Agency, the world's energy watchdog, said net-zero emissions pledges and promises to cut methane announced at Cop26, if enforced, would enable the world to limit warming to below 2 degrees.
"New @IEA analysis shows that fully achieving all net zero pledges to date & the Global Methane Pledge by those who signed it would limit global warming to 1.8C," IEA chief Fatih Birol wrote on Twitter.
Selwin Hart, special adviser to the UN secretary general on climate action, challenged Mr Birol's assertion.
"Fatih, I heard your numbers. But based on the NDCs that have been submitted, the world is on a 2.7 degree pathway – a catastrophic pathway," Mr Hart said in Glasgow.
"And therefore we are a long way from keeping the 1.5C goal of the Paris Agreement alive. We cannot be complacent. We cannot celebrate before we've done the job," he added.
The UN Environment Programme said poorer countries needed five to 10 times more money to adapt to the consequences of climate change than they are now getting.
Richer countries failed to meet a 2020 deadline for delivering $100 billion a year in "climate finance".
Questions of finance also swirled around the Cop26 coal deal, which some countries said they would not be able to deliver without more financial help.
We need to have funding to retire coal earlier and to build the new capacity of renewable energy
Mulyani Indrawati,
finance minister of Indonesia
"We need to have funding to retire coal earlier and to build the new capacity of renewable energy," said Indonesia's finance minister Mulyani Indrawati. The Southeast Asian nation is the world's biggest coal exporter, and relies on the fuel for 65 per cent of its own energy capacity.
It also will be among the first recipients of a multibillion dollar pilot programme to speed a transition to clean energy, along with India, South Africa and the Philippines, the Climate Investment Funds said.
The main aim of Cop26 is to get promises of enough cuts in greenhouse gas emissions to put the world on a clear path towards capping the rise in global temperature - already up 1.1C since pre-industrial times.
Citizenship-by-investment programmes
United Kingdom
The UK offers three programmes for residency. The UK Overseas Business Representative Visa lets you open an overseas branch office of your existing company in the country at no extra investment. For the UK Tier 1 Innovator Visa, you are required to invest £50,000 (Dh238,000) into a business. You can also get a UK Tier 1 Investor Visa if you invest £2 million, £5m or £10m (the higher the investment, the sooner you obtain your permanent residency).
All UK residency visas get approved in 90 to 120 days and are valid for 3 years. After 3 years, the applicant can apply for extension of another 2 years. Once they have lived in the UK for a minimum of 6 months every year, they are eligible to apply for permanent residency (called Indefinite Leave to Remain). After one year of ILR, the applicant can apply for UK passport.
The Caribbean
Depending on the country, the investment amount starts from $100,000 (Dh367,250) and can go up to $400,000 in real estate. From the date of purchase, it will take between four to five months to receive a passport.
Portugal
The investment amount ranges from €350,000 to €500,000 (Dh1.5m to Dh2.16m) in real estate. From the date of purchase, it will take a maximum of six months to receive a Golden Visa. Applicants can apply for permanent residency after five years and Portuguese citizenship after six years.
“Among European countries with residency programmes, Portugal has been the most popular because it offers the most cost-effective programme to eventually acquire citizenship of the European Union without ever residing in Portugal,” states Veronica Cotdemiey of Citizenship Invest.
Greece
The real estate investment threshold to acquire residency for Greece is €250,000, making it the cheapest real estate residency visa scheme in Europe. You can apply for residency in four months and citizenship after seven years.
Spain
The real estate investment threshold to acquire residency for Spain is €500,000. You can apply for permanent residency after five years and citizenship after 10 years. It is not necessary to live in Spain to retain and renew the residency visa permit.
Cyprus
Cyprus offers the quickest route to citizenship of a European country in only six months. An investment of €2m in real estate is required, making it the highest priced programme in Europe.
Malta
The Malta citizenship by investment programme is lengthy and investors are required to contribute sums as donations to the Maltese government. The applicant must either contribute at least €650,000 to the National Development & Social Fund. Spouses and children are required to contribute €25,000; unmarried children between 18 and 25 and dependent parents must contribute €50,000 each.
The second step is to make an investment in property of at least €350,000 or enter a property rental contract for at least €16,000 per annum for five years. The third step is to invest at least €150,000 in bonds or shares approved by the Maltese government to be kept for at least five years.
Candidates must commit to a minimum physical presence in Malta before citizenship is granted. While you get residency in two months, you can apply for citizenship after a year.
Egypt
A one-year residency permit can be bought if you purchase property in Egypt worth $100,000. A three-year residency is available for those who invest $200,000 in property, and five years for those who purchase property worth $400,000.
Source: Citizenship Invest and Aqua Properties
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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PROFILE BOX
Company name: Overwrite.ai
Founder: Ayman Alashkar
Started: Established in 2020
Based: Dubai International Financial Centre, Dubai
Sector: PropTech
Initial investment: Self-funded by founder
Funding stage: Seed funding, in talks with angel investors
Results:
5pm: Conditions (PA) Dh80,000 1,400m | Winner: AF Tahoonah, Richard Mullen (jockey), Ernst Oertel (trainer)
5.30pm: Handicap (TB) Dh90,000 1,400m | Winner: Ajwad, Gerald Avranche, Rashed Bouresly
6pm: Maiden (PA) Dh80,000 1,600m | Winner: RB Lam Tara, Fabrice Veron, Eric Lemartinel
6.30pm: Handicap (PA) Dh80,000 1,600m | Winner: Duc De Faust, Szczepan Mazur, Younis Al Kalbani
7pm: Wathba Stallions Cup (PA) Dh70,000 2,200m | Winner: Shareef KB, Fabrice Veron, Ernst Oertel
7.30pm: Handicap (PA) Dh90,000 1,500m | Winner: Bainoona, Pat Cosgrave, Eric Lemartinel
Directed by: Craig Gillespie
Starring: Emma Stone, Emma Thompson, Joel Fry
4/5
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Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates