Kwasi Kwarteng at Cop28. Pawan Singh / The National
Kwasi Kwarteng at Cop28. Pawan Singh / The National
Kwasi Kwarteng at Cop28. Pawan Singh / The National
Kwasi Kwarteng at Cop28. Pawan Singh / The National

Cop28 making progress, says UK's former energy secretary Kwasi Kwarteng


Daniel Bardsley
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Live updates: Follow the latest news on Cop28

The signs are good that Cop28 will make a difference to climate change, the UK's former energy secretary said on a visit to the UN conference in Dubai.

Kwasi Kwarteng, who was secretary of state for business, energy and industrial strategy from 2021 to 2022 under former prime minister Boris Johnson, said there seemed to be real commitment to deal with emissions from fossil fuels "for the first time" at a Cop.

"I think it’s an important Cop. I think some progress is being made. It’s going relatively well," he told The National.

"The feel is quite promising."

Mr Kwarteng, who served briefly as UK chancellor during Liz Truss’s short tenure as prime minister last year, and who remains a member of parliament, said it was important that the private sector was "involved and engaged" when it comes to limiting climate change.

The current UK Prime Minister Rishi Sunak has been accused by some campaigners of watering down his country’s green commitments.

However, such criticism, prompted by decisions such as his announcement in September of a five-year delay to a ban on the sale of petrol and diesel vehicles in the UK, was described as "exaggerated" by Mr Kwarteng.

"The substance of what we’ve done in the past three or four years remains the same," he said.

"There’s the EV [electric vehicle] roll-out, the moving of the date from 2030 to 2035. I previously said I didn’t think that was the right thing.

"We still have a leadership position. Offshore wind has been very successful. We are a leader in the field of decarbonisation. In 2012, 40 per cent of our electricity was coming from coal. Yesterday it was zero."

Mr Kwarteng said there may have been some changes to the government's language around green issues after a by-election in Boris Johnson’s former parliamentary seat of Uxbridge and South Ruislip, where concerns over a green air policy are thought to have influenced the result.

However, the former chancellor insisted "the substance" of many of the UK’s climate goals "hasn’t changed".

Trump's threat to climate change

Mr Kwarteng described the potential re-election of Donald Trump as US president as "a bit of a risk" when it came to dealing with climate change.

Mr Trump is far ahead of his rivals in polls on who might secure the Republican nomination for next year’s presidential vote.

During his previous presidency, from 2016 to 2020, Mr Trump withdrew the US from the 2015 Paris Agreement on climate change, although the country rejoined under President Joe Biden.

Mr Kwarteng, who dealt with the Trump administration when he was UK energy secretary, said he did not think any future Trump presidency, should it come about, would row back on Mr Biden’s flagship Inflation Reduction Act.

The legislation passed last year, which offers tax incentives for investment in green industries such as EVs, wind power and solar energy, is credited with helping to mobilise tens of billions of capital, potentially creating hundreds of thousand of jobs.

Mr Kwarteng said the benefits of the scheme "go to the red states, the red Republican states".

"The trajectory of the policy will stay the same," he added. "There may be some [changes] in terms of the language. I’m confident the direction will be maintained."

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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Men's semi-finals

Novak Djokovic (1) v Dominic Thiem (5) from 6pm

Stefanos Tsitsipas (8) v Rafael Nadal (2) from 11pm

Women's final

Simona Halep (3) v Kiki Bertens (7) from 8.30pm

MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)

Results:

5pm: Conditions (PA) Dh80,000 1,400m | Winner: AF Tahoonah, Richard Mullen (jockey), Ernst Oertel (trainer)

5.30pm: Handicap (TB) Dh90,000 1,400m | Winner: Ajwad, Gerald Avranche, Rashed Bouresly

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6.30pm: Handicap (PA) Dh80,000 1,600m | Winner: Duc De Faust, Szczepan Mazur, Younis Al Kalbani

7pm: Wathba Stallions Cup (PA) Dh70,000 2,200m | Winner: Shareef KB, Fabrice Veron, Ernst Oertel

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Updated: December 10, 2023, 11:36 AM