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The man who helped to strike the 2015 Paris Agreement said that the deal did spur action on climate change, although the world has fallen short of meeting its goals.
But former foreign minister of France Laurent Fabius, who chaired Cop21, where the agreement was finalised, called for “urgent” action to get the world back on target.
Speaking at Cop28 in Dubai, he said that the summit could be a global success if the conference's initial wins, particularly on the issue of loss and damage, were followed up by progress in other areas.
“Paris is a landmark, it is a framework and all the people that I've seen today say that, 'We're all children of the Paris Agreement,'” he said.
Mr Fabius said that before Paris, average global temperatures were set to rise by about 4°C above pre-industrial levels, but now the likelihood was of somewhere between 2.8°C and 3°C.
He said that currently “all the figures are not good” and that scientists indicated that the world was “off track” to meet its climate targets.
“We have to be 1.5 [°C], which means we must act, not only largely, but urgently,” he said.
“Not in 20 years. Right now. I'm sure that having discussed this with [Cop28 President Dr] Sultan Al Jaber, he knows that.”
Mr Fabius said that in terms of action to limit climate change, the world had to be “very clear about what's possible and not to delay it”.
“Companies, governments and ordinary people have to know they have progressed to replace fossil fuels by renewables,” he said.
“We have to insist on that. It will be part and parcel of the success of this Cop.”
Mr Fabius, who is the president of France's Constitutional Council, said that the start of Cop28 “has been good”.
He highlighted the action on the loss and damage fund that was set up at Cop27 in Sharm El Sheikh in Egypt last year to ensure that wealthier nations helped poorer countries to cope with the harm caused by climate change.
Pledges exceeding $700 million have been announced for the fund during Cop28, with donors including Germany and the UAE both contributing $100 million each.
However, referring to issues that remain on the table at Cop28, Mr Fabius said that there remained “two or three big ones” to forge an agreement on.
“We have the question of fossil fuels; we have the question of adaptation; and we have more generally the question of finance. We need public and private finance,” he said.
A key point of interest is on what the final text from Cop28 will say with respect to fossil fuels, in particular whether it will include a commitment to phasing them out rather than phasing them down.
On climate finance, campaigners have said that developed nations have fallen short of delivering $100 billion each year to assist developing nations to limit or mitigate their emissions and to adapt to climate change that was promised at Cop15 in Copenhagen in 2015.
There have been concerns expressed that much of the finance that has materialised has been in the form of loans rather than grants, which climate campaigners said could risk pitching poorer countries deeper into debt.
“I hope they will do their best; I'm sure they will do their best,” Mr Fabius said of the Cop28 negotiations.
“We have to deal with it because it's so important, not only for the success of this Cop but for the climate problem.
“The initial decisions, which have been good, could be pursued by a more general approach, particularly on the problems raised and it would make it a global success.”
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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.”