The travel and tourism sector's greenhouse gas emissions are declining even as the industry continues to grow but it must pursue decarbonisation plans “aggressively”, the World Travel and Tourism Council chief said.
Between 2010 and 2019, the sector’s gross domestic product grew on average 4.3 per cent annually while its environmental footprint increased by 2.4 per cent, according to the latest data on the industry's climate impact by WTTC and Saudi Arabia-based Sustainable Global Tourism Centre.
The sector was responsible for 8.1 per cent of global greenhouse gas emissions in 2019, down from previous estimates of 11 per cent, according to the data.
“Until now, it's not been possible to quantify the actual impact that we're having on the climate, we simply as a whole sector did not have the data,” Julia Simpson, president and chief executive of WTTC, said on Monday, as the tourism body launched its environment and social impact report for travel and tourism.
“It is a ground-breaking piece of research that allows us to measure and track our sector's climate footprint … So now we know what we are working with,” she said.
The new report will give travel and tourism businesses the latest data on the areas they need to focus on for a climate action plan and provide governments with facts on how to meet SDG targets, Ms Simpson said at the WTTC Global Summit in Riyadh.
“We have started on the journey of growing our businesses but reducing our carbon intensity and this is critical. While our total emissions are at the lower range of previous estimates, we will need to decarbonise absolutely aggressively but we cannot do this alone,” she said.
The WTTC chief highlighted the top priorities for the sector including a shift to renewable energy and increasing both the production and use of sustainable aviation fuels (SAFs) in aircraft.
“In 2019, around one-fifth of emissions came from electricity, so while we look to our own energy efficiency, we need governments to help us switch to renewables for the energy we use from the grid every time we turn a light on in our hotel room,” she said.
The transport sector contributed 38 per cent of carbon emissions in 2019.
While electric and hydrogen aircraft will become a possibility in the future, the use of SAF now will help the aviation industry reach the Paris Agreement targets.
“It is critical that we have wide-scale availability of SAF. We need a commitment by fuel producers … to produce SAF and policies by governments to incentivise the production of SAF,” Ms Simpson said. “The technology for SAF already exists, we need governments to make it a priority.”
While climate change is a planet-wide problem, it is also an opportunity to preserve natural resources for future generations.
“We will not only protect the world and its abundance of resources but ensure they are the inheritance of every future traveller, so that beyond the horizon lies yet again a new wonder,” Ms Simpson said.
The aviation industry is taking steps towards its target of net-zero emissions by 2050, amid growing pressure from climate change activists over the impact of billions of additional passengers that are expected to take to the skies in the coming years.
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Racecard
2pm Handicap Dh 90,000 1,800m
2.30pm Handicap Dh120,000 1,950m
3pm Handicap Dh105,000 1,600m
3.30pm Jebel Ali Classic Conditions Dh300,000 1,400m
4pm Maiden Dh75,000 1,600m
4.30pm Conditions Dh250,000 1,400m
5pm Maiden Dh75,000 1,600m
5.30pm Handicap Dh85,000 1,000m
The National selections:
2pm Arch Gold
2.30pm Conclusion
3pm Al Battar
3.30pm Golden Jaguar
4pm Al Motayar
4.30pm Tapi Sioux
5pm Leadership
5.30pm Dahawi
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
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.”
'The worst thing you can eat'
Trans fat is typically found in fried and baked goods, but you may be consuming more than you think.
Powdered coffee creamer, microwave popcorn and virtually anything processed with a crust is likely to contain it, as this guide from Mayo Clinic outlines:
Baked goods - Most cakes, cookies, pie crusts and crackers contain shortening, which is usually made from partially hydrogenated vegetable oil. Ready-made frosting is another source of trans fat.
Snacks - Potato, corn and tortilla chips often contain trans fat. And while popcorn can be a healthy snack, many types of packaged or microwave popcorn use trans fat to help cook or flavour the popcorn.
Fried food - Foods that require deep frying — french fries, doughnuts and fried chicken — can contain trans fat from the oil used in the cooking process.
Refrigerator dough - Products such as canned biscuits and cinnamon rolls often contain trans fat, as do frozen pizza crusts.
Creamer and margarine - Nondairy coffee creamer and stick margarines also may contain partially hydrogenated vegetable oils.
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Gulf Under 19s final
Dubai College A 50-12 Dubai College B
Specs
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