Dr Sultan Al Jaber, President-designate of the Cop28 UN climate conference, has urged more countries to join a pledge to deliver more sustainable cooling solutions.
The UN Environment Programme and the Cop 28 Presidency announced in January the development of a 'Global Cooling Pledge', which provides incentives to governments and stakeholders to act on sustainable cooling in five areas: nature-based solutions, super-efficient appliances, food and vaccine cold chains, district cooling and National Cooling Action Plans.
More than 20 nations to date have signed up to the pledge.
Sustainable Energy for All, an independent organisation with close ties to the UN, said almost 2.5 billion people do not have access to climate-friendly cooling solutions.
In addition, more than one billion people are at high risk from extreme heat due to a lack of cooling access – the vast majority of whom are living in Africa and Asia.
This pledge aims to improve energy efficiency and increase access to sustainable cooling
Dr Sultan Al Jaber
Standard cooling solutions, such as air conditioning, are responsible for more than seven per cent of global greenhouse gas emissions. If the current usage rate continues, energy needs for space cooling will triple by 2050, together with associated emissions.
Speaking on the sidelines of the 14th Clean Energy Ministerial, alongside the G20 Energy Transitions Ministerial Meeting, Dr Al Jaber, who is also UAE Minister of Industry and Advanced Technology, urged countries to join the global cooling pledge.
“We cannot expand cooling on a business-as-usual basis,” said Dr Al Jaber.
“Without strong policy action, emissions from the sector will rise between 7 to 10 per cent from today. To solve this dilemma, we need a rapid transition to energy-efficient and climate-friendly cooling.”
He thanked Dan Jorgensen, Danish Minister for Development and Global Climate Policy, and Dr Jitendra Singh, India's Minister of Science and Technology, for their commitment as Cool Champions promoting global action on sustainable cooling.
The Global Cooling Pledge aims to expand cooling to protect the most vulnerable communities from extreme heat, keep food fresh and vaccines safe, especially in the global south, small island states and least developed countries.
Dr Al Jaber said the world can provide cooling access to those who need it without undermining the energy transition.
He said cooling was a matter of climate justice for the most vulnerable states
“Food and medicine all depend on cooling. It is a topic of critical importance across climate mitigation and adaptation,” he said.
“Cooling is also a matter of climate justice – with heat disproportionately impacting lower-income communities and families.
“In a warming world, sustainable cooling is critical for reducing GHG [greenhouse gas] emissions, protecting against heat stress, enabling productivity, reducing food loss and enhancing access to healthcare,”
“We have a unique opportunity to deliver a significant, collective response to the cooling challenge via the Global Cooling Pledge.
“This pledge aims to improve energy efficiency and increase access to sustainable cooling.
“It is gaining momentum with more than 20 early supporters – including India and Denmark. But there is more to be done. I call on all countries to join the Global Cooling Pledge in the lead up to Cop28.”
Earlier this month, Dr Al Jaber outlined the UAE's four-pillar plan for Cop28 – fast-tracking the energy transition, fixing climate finance, focusing on people and making inclusivity a hallmark of the summit in Dubai.
He set out what he called a “science-based, action-oriented” plan at a 26-nation climate meeting in Brussels.
Cop28, which will be hosted at Expo City Dubai in November, will be the first “global stocktake” of progress in limiting climate change.
Speaking in Brussels, Dr Al Jaber called on countries to update emissions plans by September to ensure they were aligned with the goal of limiting global warming to 1.5°C – a target he said was the “north star” of his plan for Cop28.
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Date of start: 2013
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Based: Dubai
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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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