About 200 nations from around the globe continued to chase a deal at the Cop27 summit in Egypt that will help in the struggle to save the planet from climate change.
But despite hurdles, small but significant signs surfaced that an agreement at the UN summit remained possible.
Working against the clock — the summit is scheduled to wrap up by Friday — negotiators were stepping up efforts to narrow the gap over such vital issues as loss and damage and renewing a commitment made in 2015 to limit global warming to 1.5°C, compared to pre-industrial levels.
Egypt, the host country, appealed to negotiators to iron out their differences to meet the Friday deadline.
“I think we have a larger than normal number of lingering issues,” said Wael Aboulmagd, the special representative of the summit's Egyptian presidency.
“We would have hoped under the current circumstances to see more willingness to co-operate and accommodate than we are seeing.
“Some delegations are holding back work in a number of rooms. And we really hope that everyone, as we say it, rises to the occasion and appreciates that business as usual is not enough right now.”
Injecting a measure of impetus to the talks in Egypt, Group of 20 leaders, who ended a summit in Indonesia on Wednesday, expressed support for the 1.5°C ceiling on global temperature rises, phasing out coal and speeding up climate finance.
In Sharm El Sheikh, the Red Sea resort where the summit is being held, a timely boost came from an impassioned speech by Brazilian president-elect Luiz Inacio Lula da Silva, who vowed to re-engage the rainforest nation with international efforts to fight climate change.
“Today, I am here to say that Brazil is ready to build a healthier planet,” he said. “Brazil is back.”
Loss and damage controversy
Loss and damage — climate parlance for rich nations bankrolling efforts to adapt to and mitigate the impact of climate change in developing nations — is continuing to hinder progress by negotiators and polarise the talks.
Rich nations, responsible for the vast majority of climate-warming emissions, are adamant that existing finance channels should be enough to cover loss and damage and may be expanded to meet growing demand for funds by developing nations, who are the least responsible for climate change.
On Wednesday, however, the European Union climate chief Frans Timmermans, said the bloc was providing €60 million towards climate change.
Another encouraging sign came from John Kerry, the US climate envoy, who said on Wednesday that his country and China are “fully engaged” in talks at the UN climate summit in Egypt.
Mr Kerry met China's top climate official Xie Zhenhua on Tuesday, signalling a return to communication between the two after Beijing put such talks on hold three months ago in retaliation for US House Speaker Nancy Pelosi's trip to Taiwan.
Asked about the outcome of the meeting, Mr Kerry would only say: “We'll have to see, it’s a late start.”
China’s about-turn on climate negotiations with the US followed a partial thaw in relations between Washington and Beijing during the G20 meeting.
In their final communique, the G20 leaders declared their commitment to pursuing more ambitious limits on global warming — a positive development that prompted the representative of Egypt’s Cop27 presidency to welcome it.
There are signs that the rich nations’ position on loss and damage may be softening, but it remains to be seen whether a compromise is possible with only two days left until the summit’s conclusion.
Developing nations have for years been pressing wealthy nations for funds to deal with the damage they suffer due to climate change. This UN climate summit in Egypt was the first to include loss and damage on the agenda, a small but significant victory that was soon eclipsed by divisions over the issue.
The subject has gained additional urgency in recent months as many nations around the globe were hit by natural disasters, such as flooding that put a third of Pakistan underwater in August and widespread, lengthy droughts in parts of Africa.
Developing nations also want to see rich nations make good on financial pledges made at previous summits, particularly an annual $100 billion to help them cope with climate change.
Cabinet ministers have meanwhile started to descend on Egypt to throw their political weight behind the diplomats and technical officials who have so far been leading the negotiations.
Their hope is that compromises on the divisive issues can be reached by Friday to spare the planet calamitous levels of warming in coming decades if no agreement is reached.
Delegates have also been wrestling with other issues, such as whether to renew their countries’ milestone commitment to the 1.5ºC temperature rise limit
This year's two-week summit has also fallen victim to geopolitical issues.
EU delegates walked out of a speech on Tuesday by Russia's special climate representative, while a small group of Ukrainian and Polish activists briefly disrupted a Russian side event.
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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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FA Cup semi-finals
Saturday: Manchester United v Tottenham Hotspur, 8.15pm (UAE)
Sunday: Chelsea v Southampton, 6pm (UAE)
Matches on Bein Sports
Company%20Profile
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Killing of Qassem Suleimani
Killing of Qassem Suleimani
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
COMPANY%20PROFILE
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Profile of Tamatem
Date started: March 2013
Founder: Hussam Hammo
Based: Amman, Jordan
Employees: 55
Funding: $6m
Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media
The biog
Title: General Practitioner with a speciality in cardiology
Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India
Education: Medical degree from the Government Medical College in Nagpur
How it all began: opened his first clinic in Ajman in 1993
Family: a 90-year-old mother, wife and two daughters
Remembers a time when medicines from India were purchased per kilo
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
UAE currency: the story behind the money in your pockets