CeraWeek is the biggest energy conference in the US and will be held from March 7-11 in Houston. AP
CeraWeek is the biggest energy conference in the US and will be held from March 7-11 in Houston. AP
CeraWeek is the biggest energy conference in the US and will be held from March 7-11 in Houston. AP
CeraWeek is the biggest energy conference in the US and will be held from March 7-11 in Houston. AP

US climate envoy John Kerry to address CeraWeek energy forum in March


Alkesh Sharma
  • English
  • Arabic

CeraWeek, one of the world's largest annual energy forums, will convene top energy industry leaders and government officials — including US special presidential envoy for climate John Kerry — in Houston next month.

Dr Sultan Al Jaber, the UAE Minister of Industry and Advanced Technology, Special Envoy for Climate Change, will also address the conference.

The 40th annual gathering will be held in-person under the theme of “Pace of Change: Energy, Climate and Innovation” from March 7 to 11, event organisers said.

“We are pleased to welcome [Mr] Kerry among the distinguished speakers at CeraWeek by IHS Markit 2022,” said Daniel Yergin, conference chair and vice chairman of IHS Markit.

Dr Sultan Al Jaber and Daniel Yergin speak during a previous CeraWeek in Houston, Texas. Photo: Adnoc
Dr Sultan Al Jaber and Daniel Yergin speak during a previous CeraWeek in Houston, Texas. Photo: Adnoc

“His unique knowledge and experience, both in his current position at the epicentres of global climate diplomacy such as at Cop26 in Glasgow and a career imbued with leadership in foreign affairs, will be a timely and important contribution to the critical dialogues taking place at this year’s conference,” Mr Yergin said.

Mr Kerry will join other energy industry leaders, experts, government officials and policymakers, as well as experts from the technology, financial and industrial communities at this year’s conference.

The first-ever principal to sit on the US National Security Council entirely dedicated to climate change, Mr Kerry previously has served as the 68th US secretary of state and as a senator representing Massachusetts.

CeraWeek is returning to Houston after being hosted as an online event last year due to concerns over the rapid spread of coronavirus in the US.

The event will examine challenges and opportunities to reducing emissions while meeting the needs of a growing global economy in the era of energy transition, the organisers said.

Some of the themes that will be addressed include more energy, lower emissions; geopolitics and energy markets; the workforce of the future; competitive landscape and the energy transition; supply chains; and financing the future of energy.

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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