British Prime Minister Rishi Sunak’s announcement of the general election to be held on July 4, as he was soaked by rain outside No 10 Downing Street, was appropriate. Climate change made last winter the second wettest on record, quite an achievement for British weather, causing flooding and damaging farmland.
Now, after 14 years of at best soggy progress on climate and energy, it’s up to the likely winners, the Labour Party, and other contenders to show they can do better.
What have the Conservatives got right? The signature achievement is that Britain has been the fastest-decarbonising major country. Between 2010, when the Conservative Party entered power in a coalition, and 2023, emissions dropped 37 per cent.
The government was tough on Russia following its invasion of Ukraine, after senior figures had previously flirted with Moscow. In September, it approved the development of Rosebank, the largest undeveloped oilfield on the UK’s continental shelf. Positive for British energy security and tax revenue, this will make little net difference to greenhouse gas emissions.
The decarbonisation achievement is less than it appears at first sight. It was aided by some warm winter weather in 2022-23 and 2023-24, and also reflects a sluggish economy, the after-effects of the Covid pandemic and soaring energy bills in the 2022 crisis.
More importantly, it is mainly a result of eliminating coal from electricity generation in favour of gas and renewables – mostly onshore and offshore wind and bio-energy. This is a trick that only works once. After the recent flop of a badly planned offshore wind auction, it’s not clear how the country will keep the lights on and bills in check while cutting down the remaining use of gas.
And much less progress has been made on decarbonising transport, heavy industry or the Conservative-leaning farming business.
The biggest failings lie in a lack of ambition, a readiness to be blown around by the winds of fortune, or newspaper headlines. There have been more energy ministers than prime ministers – 11 in 14 years – in an ever-shifting portfolio that sometimes included business, industry or climate. Not surprisingly, major long-term and expensive projects such as new nuclear reactors and carbon capture and storage have made achingly slow progress, with frequent U-turns.
Having promised “the greenest government ever” on entering coalition in 2010, the first of a run of five Conservative prime ministers, David Cameron, decided in 2013 to slash a swathe of environmental policies from bills, such as support for renewable energy, insulation and heat pumps. Political donors in the housing industry wanted to cut construction costs.
What were then record energy bills of £1,400 ($1,780) per year for an average household soared to £2,500 in 2023, even including a substantial subsidy. Russia’s squeeze on European gas markets was not the British government’s fault, but its failure to improve Britain’s dismal home insulation and energy efficiency should be laid squarely at its door.
These rising concerns about the cost of living, and specifically energy, gave an opening to blame “net-zero” policies. This is not solely a British phenomenon, but a trend repeated across Europe. In November, the far-right PVV party came first in the Netherlands’s elections after promising “we will stop the hysterical reduction of CO2”.
In September, Mr Sunak put back a ban on the sales of new petrol and diesel cars by five years to 2035, and delayed the phase-out of gas boilers in favour of heat pumps in homes. The government theoretically reversed its long-standing effective ban on new onshore wind projects, but retained obstacles on local consultation that mean no new wind farms have been started.
The only one of 16 by-elections in the past two years won by the Conservatives was in suburban London where the party played on fears about mayor Sadiq Khan’s “ultra-low emission zone” for vehicles.
The Labour Party has a much more pro-environmental agenda. So do most of the other opposition parties, other than the hard-right Reform insurgents – the Liberals, the Scottish and Welsh nationalists and, of course, the Greens, who may secure two seats.
Labour’s challenges fall into four areas. First, to balance big ambitions with fiscal credibility, after February’s decision to water down an annual £28 billion ($35.66 billion) low-carbon transformation to £4.7 billion. Retaining or increasing the “windfall” tax on offshore oil and gas production is financially tempting but would be foolish for deterring investment, now that prices are nowhere near windfall levels.
Second, to define the roles of state, nationalised and private business. Great British Energy, a new state-owned renewable company, will be capitalised with £8.3 billion. But what is it really going to do – invest in proven renewable deployment that the private sector already does perfectly well? Scale up emerging technology, with potentially big pay-offs, but also risks and competition from the US, EU and China? Or enable new infrastructure such as grids and offshore wind connections, that could cut overall costs and bureaucracy? Would it also invest abroad, as the national champions it seems to emulate do, such as Denmark’s Ørsted, Norway’s Equinor, France’s EDF – or even the UAE’s Masdar?
Third, to manage the tension between traditional support from trade unions and industrial areas, and concerns from the general public about living costs and lifestyles, with the need to cut emissions in areas beyond the power sector. Home energy efficiency improvements can be piecemeal and disruptive, but are essential and ultimately beneficial.
Fourth, to be pragmatic in the face of simplistic demands from climate campaigners. new oil and gas developments, even those that bring in jobs and tax revenue, are funded by private capital, and don’t add to net emissions. There will be reflexive opposition to carbon capture and storage, crucial for decarbonising heavy industry but seen as aligned with fossil fuel interests. Yet Britain, with Norway, has by far Europe’s best carbon dioxide storage potential.
Fifth, to rebuild the relationship with the EU. This goes far beyond energy and climate, of course, encompassing the whole Brexit debacle. The UK’s carbon price is well below that in the EU, exposing its exporters to penalties. Integrating renewable-heavy grids and competing with global giants in new energy technology in China and the US will need much more co-operation with the European single market.
The environment ranks about fourth on Britons’ top issues, well behind the economy, health and immigration. It may not change many voters’ minds. But if the next prime minister doesn’t want to appear a drip outside Downing Street, getting energy and climate right is essential.
Robin M. Mills is chief executive of Qamar Energy and author of 'The Myth of the Oil Crisis'
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INDIA SQUADS
India squad for third Test against Sri Lanka
Virat Kohli (capt), Murali Vijay, Lokesh Rahul, Shikhar Dhawan, Cheteshwar Pujara, Ajinkya Rahane, Rohit Sharma, Wriddhiman Saha, Ravichandran Ashwin, Ravindra Jadeja, Kuldeep Yadav, Mohammed Shami, Umesh Yadav, Ishant Sharma, Vijay Shankar
India squad for ODI series against Sri Lanka
Rohit Sharma (capt), Shikhar Dhawan, Ajinkya Rahane, Shreyas Iyer, Manish Pandey, Kedar Jadhav, Dinesh Karthik, Mahendra Singh Dhoni, Hardik Pandya, Axar Patel, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah, Bhuvneshwar Kumar, Siddarth Kaul
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Los Angeles, from Dh4,975 return, including taxes. The flight time is 16 hours. Alaska Airlines, United Airlines, Delta Air Lines, Aeromexico and Southwest all fly direct from Los Angeles to San Jose del Cabo from Dh1,243 return, including taxes. The flight time is two-and-a-half hours.
The trip
Lindblad Expeditions National Geographic’s eight-day Whales Wilderness itinerary costs from US$6,190 (Dh22,736) per person, twin share, including meals, accommodation and excursions, with departures in March and April 2018.
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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Five expert hiking tips
- Always check the weather forecast before setting off
- Make sure you have plenty of water
- Set off early to avoid sudden weather changes in the afternoon
- Wear appropriate clothing and footwear
- Take your litter home with you
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The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
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.”
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
PROFILE OF HALAN
Started: November 2017
Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga
Based: Cairo, Egypt
Sector: transport and logistics
Size: 150 employees
Investment: approximately $8 million
Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar
Race card
4pm Al Bastakiya Listed US$300,000 (Dirt) 1,900m
4.35pm Mahab Al Shimaal Group 3 $350,000 (D) 1,200m
5.10pm Nad Al Sheba Turf Group 3 $350,000 (Turf) 1,200m
5.45pm Burj Nahaar Group 3 $350,000 (D) 1,600m
6.20pm Jebel Hatta Group 1 $400,000 (T) 1,800m
6.55pm Al Maktoum Challenge Round-3 Group 1 $600,000 (D) 2,000m
7.30pm Dubai City Of Gold Group 2 $350,000 (T) 2,410m
The National selections:
4pm Zabardast
4.35pm Ibn Malik
5.10pm Space Blues
5.45pm Kimbear
6.20pm Barney Roy
6.55pm Matterhorn
7.30pm Defoe