Geopolitical tensions have rippled through Cop29, prompting climate campaigners to remind national leaders why they are in Baku.
Negotiations will resume on Monday – Sunday is a rest day – after the usually staid world of climate negotiations was rattled by a French minister cancelling her trip to the summit and Argentina withdrawing its delegation.
The French move came after Azerbaijan’s President Ilham Aliyev targeted France and the Netherlands over what he said was colonial rule. Mr Aliyev also used his speech during the World Climate Action Summit on Tuesday to criticise those who accused Azerbaijan of being a “petrostate”, and railed against the “hypocrisy” of the West.
Josep Borrell, the EU’s foreign policy chief, weighed in by stating on X that “these unacceptable statements risk to undermine the conference’s vital climate objectives”, prompting Hikmat Hajiyev, assistant to Azerbaijan’s president, to refute the remarks and state the “Cop process belongs to the UN and world”. He pledged that the Cop29 presidency would work constructively with all parties to deliver a good outcome.
Argentina's decision was not fully explained but its president, Javier Milei, is a climate sceptic. Along with the election of Donald Trump as US president-elect just before the summit, it has made for an interesting first week in Baku where countries are grappling with the hardest topic of all: money.
Azerbaijan, hosting arguably the most prestigious global gathering in its history, is drawing on its experience leading the Non-Aligned Movement from 2019 to 2024 and ultimately trying to showcase its geopolitical influence outside the West.
“It has built relationships with fellow developing producers, but also the most climate-vulnerable of countries,” Ruth Townend, senior research fellow at the Environment and Society Centre at Chatham House, told The National. “It is not unusual for Cop hosts to want to keep their friends close at such events.”
World away from the West
The summit has shed light on the sometimes strange and surreal world of meetings of the United Nations Framework Convention on Climate Change. A delegation from the Taliban wandered the halls during the first week and Russia, despite being sanctioned in the West, was drawing people to its prominent pavilion in the UNFCCC-managed “blue zone” for talks and events such as one on the future of its coal industry and climate.
Cop28 ended with a historic decision to “transition away” from fossil fuels. However, during his speech at the leader’s summit, the Azerbaijani President said his country was an advocate for the green transition but called for people to be “realistic” about it.
“It is this reframing of the event which is of most concern, rather than the presidency's encouragement of allies to attend,” said Ms Townend, who wrote Azerbaijan’s climate leadership challenge: what’s at stake at Cop29 and beyond for the think tank.
Several protests at the venue over the past week called for countries to act faster. Is the geopolitical backdrop playing a role?
“No, no, there's no political division,” Evans Njewa, chairman of the Least Developed Countries 45-country bloc, told The National. “I think we're moving together.”
No consensus means no agreement
Cop29 has one main task – to deliver more funds to those who need it most to fund the green transition. Drafts of the negotiating text – which would unlock funds for vulnerable countries on the front lines of climate change – have so far gone through several iterations with countries remaining far apart.
High-profile absences such as US President Joe Biden and China’s President Xi Jinping do not help the talks, with the diplomatic point-scoring further complicating the already tough job. These meetings work by consensus.
“Cop29, with its focus on climate finance, needs the major economies who have the responsibility and potential to mobilise this, to be in the room,” said Ms Townend.
A mixed reaction has greeted the call on Friday for reform of the Cop in a letter to the United Nations from a group that included former UN secretary general Ban Ki-moon. Negotiators from the small island states, for example, cautioned that they had a seat at the table at Cops – in contrast to the G20 which will meet in Brazil from November 18 to 19. The South American country also hosts Cop30 next year.
“We're not a part of those [G20] discussions,” said Michai Robertson, a negotiator for the Alliance of Small Island States. “So it is extremely important for forums like the UNFCCC to continue to exist.”
Despite the absences and withdrawals however, this could not be described as a forgotten Cop. Figures supplied by the UNFCCC show about 65,000 people have registered to attend.
Cop29 summit in Azerbaijan – in pictures
Defending the Paris deal
Toeolesulusulu Cedric Schuster, chairman of the Alliance of Small Island States, said they were here to “defend the Paris agreement” and ensure the goal of limiting global warming to 1.5C above pre-industrial levels was kept. Warming above this, scientists believe, could endanger the lives and livelihoods of countless people across the world.
This defence of previous goals rather than raising ambition to new ones has disappointed some climate campaigners. Zainab Bie, the Asia Pacific director of campaign group Equal Right, told The National that communities need to now lead the climate transition.
“We must seize this finance Cop as an opportunity to move beyond politics and focus on bold, people-centred solutions,” she said.
Hailey Campbell, co-executive director of the Care About Climate group, said Cop29 had gone from pushing for ambitious outcomes to “holding the line against backsliding”.
“Climate change doesn’t stop because of politics,” she said. “Parties must step back and remember we are here for a reason bigger than ourselves and our politics. We are here to tackle the greatest threat to our future and we need them to act like it.”
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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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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Winner MH Tawag, Bernardo Pinheiro, Elise Jeanne.
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Winner AF Kal Noor, Tadhg O’Shea, Ernst Oertel.
5pm Sharjah Marathon (PA) Dh70,000 2,700m
Winner RB Grynade, Bernardo Pinheiro, Eric Lemartinel.
Schedule
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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Fourth Arab Economic and Social Development Summit
As he spoke, Mr Aboul Gheit repeatedly referred to the need to tackle issues affecting the welfare of people across the region both in terms of preventing conflict and in pushing development.
Lebanon is scheduled to host the fourth Arab Economic and Social Development Summit in January that will see regional leaders gather to tackle the challenges facing the Middle East. The last such summit was held in 2013. Assistant Secretary-General Hossam Zaki told The National that the Beirut Summit “will be an opportunity for Arab leaders to discuss solely economic and social issues, the conference will not focus on political concerns such as Palestine, Syria or Libya". He added that its slogan will be “the individual is at the heart of development”, adding that it will focus on all elements of human capital.
Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
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Past winners of the Abu Dhabi Grand Prix
2016 Lewis Hamilton (Mercedes-GP)
2015 Nico Rosberg (Mercedes-GP)
2014 Lewis Hamilton (Mercedes-GP)
2013 Sebastian Vettel (Red Bull Racing)
2012 Kimi Raikkonen (Lotus)
2011 Lewis Hamilton (McLaren)
2010 Sebastian Vettel (Red Bull Racing)
2009 Sebastian Vettel (Red Bull Racing)
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