Hurricane Beryl hit Barbados in July. Scientists say man-made climate change is making extreme weather more common. AP
Hurricane Beryl hit Barbados in July. Scientists say man-made climate change is making extreme weather more common. AP
Hurricane Beryl hit Barbados in July. Scientists say man-made climate change is making extreme weather more common. AP
Hurricane Beryl hit Barbados in July. Scientists say man-made climate change is making extreme weather more common. AP

Countries entrenched on climate finance as Cop29 approaches


John Dennehy
  • English
  • Arabic

Countries remain entrenched on the key issue of climate finance with just months to go before the Cop29 summit starts.

A high-level meeting was held behind closed doors last week in Shamakhi, Azerbaijan, where the summit will take place in November. The talks were bound by confidentiality rules and aimed to find common ground between negotiating blocs.

But several experts close to the talks said that, while the atmosphere was constructive at the retreat held from June 26 to 27, difficult negotiations lay ahead.

The gathering was attended by heads of delegations, including the leaders of all negotiating groups, and followed a fraught last round of talks in Bonn, Germany, where countries remained divided on climate finance.

Cop29 in Baku is set to be dominated by negotiations over a new financial pledge, known as the new collective quantified goal, to replace the annual $100 billion a year for developing countries.

“The fact that this meeting was held is a positive sign from the Azerbaijan presidency, as it shows they are proactively creating spaces for dialogue to untangle the issues which prevented achieving more progress in Bonn,” said Laura Sabogal Reyes, of the E3G think tank.

“This is important to create momentum and the required sense of urgency which will enable the necessary technical and political agreements to land the new collective quantified goal.”

Cop29 President-designate Mukhtar Babayev, second from right, at the closing session of the Shamakhi retreat. Photo: @Cop29_AZ / X
Cop29 President-designate Mukhtar Babayev, second from right, at the closing session of the Shamakhi retreat. Photo: @Cop29_AZ / X

Countries at last year's Cop28 summit in Dubai made a historic decision to “transition away” from fossil fuels in global energy systems.

But the question of how to pay for this – particularly for vulnerable countries on the front lines of climate change – has emerged as a make-or-break issue for Cop29 that is to he held in Azerbaijan's capital Baku from November 11 to 22.

The current funding pledge of $100 billion a year runs until 2025 and needs to be replaced with a new target at Cop29. The pledge was initially agreed in 2009 and it was only announced last year that countries had reached it.

But many developing countries say funds are not there or are too difficult to access. Europe is among those looking for countries such as China to strengthen their climate commitments.

Finance deal key to Cop29 success

Cop29 will be hosted in Azerbaijan in November. Pawan Singh / The National
Cop29 will be hosted in Azerbaijan in November. Pawan Singh / The National

Cop29 President-designate Mukhtar Babayev said in a letter to parties last month that the new goal on finance would be the “centrepiece” of negotiations at the summit and urged developed countries “to continue efforts to meet the $100 billion goal through to 2025 with greater clarity and transparency”.

The Cop29 presidency has appointed ministers Dan Jorgensen of Denmark and Yasmine Fouad of Egypt as ministerial pairs to enhance the talks around the finance goal.

“It’s standard operating procedure for the presidency to convene heads of delegation meetings in the run-up to the Cop, in order to discuss the thorniest issues on the table,” said Simon Evans, deputy editor and senior policy editor at Carbon Brief, a UK-based climate specialist website.

“Unsurprisingly, that means they talked about issues including the new climate finance goal – where positions continue to be entrenched – and Article 6 carbon markets, where there was more progress.

“Ultimately, Cop29 won’t be seen as a success without deals in both of those areas, but it isn’t yet clear what the 'landing zones' for agreed outcomes will look like.”

Ms Reyes said E3G’s understanding of the gathering was that it was “constructive” but it was “hard to know what that means as there was no formal outcome nor synthesis document”.

“Discussions revolved around the technical and political dimensions of the NCQG to chart a clear way forward towards Cop29,” she added.

Vulnerable nations count the cost

Fishing boats damaged by Hurricane Beryl in Barbados. AP
Fishing boats damaged by Hurricane Beryl in Barbados. AP

The Alliance of Small Island States, representing nations on the front lines of climate change, said before the meeting that several Caribbean countries were still reeling from the destruction caused by Hurricane Beryl, which it said broke records as the earliest category five hurricane to hit the region. The deadly hurricane formed in late June.

“Talk without commitment on climate action is cheap for bigger countries, but our small island developing states pay the ultimate price with loss of our lives, livelihoods, and invaluable ecosystems,” the alliance's chairman, Fatumanava-o-Upolu III Dr Pa'olelei Luteru, said before last week’s gathering urging a halt to the expansion of fossil fuel projects.

Scientists say man-made climate change is bringing higher temperatures and making extreme weather more common. “We cannot accept lip service on commitments to cut emissions," he said. "Our international colleagues and partners must understand that every single tonne of emissions they put into our world’s atmosphere comes falling down to crush the most vulnerable people on our planet.”

It is thought trillions of dollars will be needed to tackle climate change and Aosis said the new goal must provide a “minimum allocation” for small island developing states.

Cop29 is only a few months away. Key meetings on the road to Baku to advance progress include the UN General Assembly and New York Climate Week in September; the G20 leaders’ summit in November; and the pre-Cop event in October, before the summit starts in Baku on November 11 to 22. But the clock is ticking.

“The Cop presidency has made significant strides in recent weeks, including organising this retreat and assigning ministerial pairs,” Ms Reyes said.

“However, ensuring a successful Cop29, will require sustained and intensified political commitment from the presidency in the coming months, which we have yet to observe in full measure.”

The effects of climate change on the Middle East region - in pictures

  • Flooding in the Al Barsha area of Dubai. Chris Whiteoak / The National
    Flooding in the Al Barsha area of Dubai. Chris Whiteoak / The National
  • Vehicles being recovered near Al Maktoum airport in Dubai. Antonie Robertson / The National
    Vehicles being recovered near Al Maktoum airport in Dubai. Antonie Robertson / The National
  • Flooding in the Al Barsha area of Dubai. Chris Whiteoak / The National
    Flooding in the Al Barsha area of Dubai. Chris Whiteoak / The National
  • Flooding along Sheikh Zayed Road in Dubai. Antonie Robertson / The National
    Flooding along Sheikh Zayed Road in Dubai. Antonie Robertson / The National
  • Flooding along Sheikh Zayed Road in Dubai. Antonie Robertson / The National
    Flooding along Sheikh Zayed Road in Dubai. Antonie Robertson / The National
  • Cars move through floodwater in Al Qudra, Dubai. Chris Whiteoak / The National
    Cars move through floodwater in Al Qudra, Dubai. Chris Whiteoak / The National
  • Flooding on Dubai's Al Khail Road. Chris Whiteoak / The National
    Flooding on Dubai's Al Khail Road. Chris Whiteoak / The National
  • People abandon their cars on Sheikh Zayed Road due to heavy rain. Antonie Robertson/The National
    People abandon their cars on Sheikh Zayed Road due to heavy rain. Antonie Robertson/The National
  • Flooding on Al Khail Road. Chris Whiteoak / The National
    Flooding on Al Khail Road. Chris Whiteoak / The National
  • Flooding in Oman. Photo: Royal Oman Police
    Flooding in Oman. Photo: Royal Oman Police
  • A damaged car in Derna, Libya. Reuters
    A damaged car in Derna, Libya. Reuters
  • A destroyed vehicle in Derna. AFP
    A destroyed vehicle in Derna. AFP
  • Abdul Salam Ibrahim Al-Qadi walks on rubble in front of his house, searching for his missing father and brother, in Derna. Reuters
    Abdul Salam Ibrahim Al-Qadi walks on rubble in front of his house, searching for his missing father and brother, in Derna. Reuters
  • An aerial view of the destruction in Derna. Reuters
    An aerial view of the destruction in Derna. Reuters
  • Flood-affected people taking refuge in a makeshift camp after heavy monsoon rains in Jaffarabad district of Balochistan province. AFP
    Flood-affected people taking refuge in a makeshift camp after heavy monsoon rains in Jaffarabad district of Balochistan province. AFP
  • Internally displaced flood-affected people shift husk for their animals in a flood-hit area following heavy rains in Dera Allah Yar in Balochistan. AFP
    Internally displaced flood-affected people shift husk for their animals in a flood-hit area following heavy rains in Dera Allah Yar in Balochistan. AFP
  • The aftermath of flooding in Egypt's southern city of Aswan, 920 kilometres south of the capital. AFP
    The aftermath of flooding in Egypt's southern city of Aswan, 920 kilometres south of the capital. AFP
  • The Nile River from the top of Famine Stela, or Rock of Starvation, Egypt. Reuters
    The Nile River from the top of Famine Stela, or Rock of Starvation, Egypt. Reuters
  • Volunteers search for people in need following heavy rainfall in east Mosul, Iraq, in March 2020. Reuters
    Volunteers search for people in need following heavy rainfall in east Mosul, Iraq, in March 2020. Reuters
  • People clean up after floods in Duhok, Iraq, on March 19. Reuters
    People clean up after floods in Duhok, Iraq, on March 19. Reuters
MATCH INFO

Uefa Champions League semi-final, first leg

Tottenham 0-1 Ajax, Tuesday

Second leg

Ajax v Tottenham, Wednesday, May 8, 11pm

Game is on BeIN Sports

Short-term let permits explained

Homeowners and tenants are allowed to list their properties for rental by registering through the Dubai Tourism website to obtain a permit.

Tenants also require a letter of no objection from their landlord before being allowed to list the property.

There is a cost of Dh1,590 before starting the process, with an additional licence fee of Dh300 per bedroom being rented in your home for the duration of the rental, which ranges from three months to a year.

Anyone hoping to list a property for rental must also provide a copy of their title deeds and Ejari, as well as their Emirates ID.

Switching%20sides
%3Cp%3EMahika%20Gaur%20is%20the%20latest%20Dubai-raised%20athlete%20to%20attain%20top%20honours%20with%20another%20country.%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVelimir%20Stjepanovic%20(Serbia%2C%20swimming)%20%3C%2Fstrong%3E%0D%3Cbr%3EBorn%20in%20Abu%20Dhabi%20and%20raised%20in%20Dubai%2C%20he%20finished%20sixth%20in%20the%20final%20of%20the%202012%20Olympic%20Games%20in%20London%20in%20the%20200m%20butterfly%20final.%20%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EJonny%20Macdonald%20(Scotland%2C%20rugby%20union)%20%3C%2Fstrong%3E%0D%3Cbr%3EBrought%20up%20in%20Abu%20Dhabi%20and%20represented%20the%20region%20in%20international%20rugby.%20When%20the%20Arabian%20Gulf%20team%20was%20broken%20up%20into%20its%20constituent%20nations%2C%20he%20opted%20to%20play%20for%20Scotland%20instead%2C%20and%20went%20to%20the%20Hong%20Kong%20Sevens.%20%0D%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ESophie%20Shams%20(England%2C%20rugby%20union)%20%3C%2Fstrong%3E%0D%3Cbr%3EThe%20daughter%20of%20an%20English%20mother%20and%20Emirati%20father%2C%20Shams%20excelled%20at%20rugby%20in%20Dubai%2C%20then%20after%20attending%20university%20in%20the%20UK%20played%20for%20England%20at%20sevens.%20%0D%3C%2Fp%3E%0A

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

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

Updated: November 07, 2024, 10:09 AM