US climate envoy John Kerry said the US would not accept an “imposed standard of liability” to help vulnerable countries overcome the effects of climate change.
In an interview with The National, the former secretary of state said the US could be relied upon for climate-related disaster relief — but “that's different from paying for a loss that hasn't been purely defined”.
“The United States will not accept … some imposed standard of liability,” said Mr Kerry, who was in Abu Dhabi for an Atlantic Council event.
The creation of a Loss and Damage Fund was one of the biggest outcomes of the last United Nations Climate Conference (Cop27).
The fund's contributors and exactly which countries will benefit are still to be decided, but the aim is to provide financial assistance to nations hardest hit by the effects of climate change.
The United States will not accept ... some imposed standard of liability
John Kerry
Looking ahead to Cop28, Mr Kerry said he had “high expectations” of the UAE as host nation.
“The UAE has really been a solid leader on new technologies,” he said. “They're highly invested in alternative renewable energy, even though they're a gas and oil producer.
“The new president of the Cop [Dr Sultan Al Jaber] was very public about it: that this is a time for transition.
“And UAE understands they are transitioning away from gas and oil into a new energy future. They're determined to be leaders in that effort. And I have high expectations that they're really going to put this issue on the table, as people prepare for the next meeting in December.”
No drawing down on fossil fuels
He disagreed with the notion of setting targets to draw down fossil fuel production at Cop28 — a topic that was debated at Cop27 — and instead suggested setting emissions reduction targets.
He said the transition to low-carbon energy is under way and there should be no negotiations over drawing down fossil fuels at Cop28.
“I don't think we have to be specifically prohibiting one thing or another,” Mr Kerry said.
“We have to prohibit emissions. We have to set standards for the way those emissions need to be reduced,” he said, adding that adequate energy supply to keep economies growing is a must.
Mr Kerry said the goal of limiting the warming of the planet to that 1.5°C is in jeopardy amid a lack of co-operation among the world's biggest economies.
The world would be “so far ahead … in the fight” against emissions if there was greater international co-operation.
“We've got to move faster,” he said.
More than 190 countries are part of the legally binding Paris Agreement, a framework agreed to in 2015 to avoid dangerous climate change by limiting the Earth's warming to 1.5°C above pre-industrial levels. Breaching the 1.5ºC threshold would mean the worst consequences of global warming, according to climate scientists.
Emissions would have to fall at rates comparable to 2020 — when Covid-19 restrictions shut down transport, industry and economic activities — every year to keep temperature rises to 1.5°C in the long term, according to the Global Carbon Brief.
Instead, global CO2 emissions rebounded to their highest level in history in 2021.
Mr Kerry criticised the lack of investment in global energy transition efforts, saying not enough money was being “put on the table” to achieve net-zero targets.
'No trying to do it on the cheap'
“We're either not trying to do it or we're trying to do it on the cheap, and the result is that we're not doing it,” said Mr Kerry on stage at the Atlantic Council Global Energy Forum on Sunday.
“The system is broken in terms of how we're trying to fix this and we need to respond more effectively.”
Investment in renewable energy needs to double to more than $4 trillion by the end of the decade to meet net-zero emissions targets by 2050, the International Energy Agency said in its World Energy Outlook last year.
In November, the US-UAE Partnership to Accelerate Transition to Clean Energy (Pace) was announced, a massive partnership to mobilise $100 billion in financing, investment and other support, and to deploy globally 100 gigawatts of clean energy by 2035.
Mr Kerry said “most of it” is to be funnelled directly into the UAE and US “in a co-operative way”, rather than invested elsewhere, without citing specific figures.
Last year, the US government launched the Energy Transition Accelerator (ETA) alongside private partners the Rockefeller Foundation and the Bezos Earth Fund, with the intention of funding renewable energy projects in developing countries through the creation of a new voluntary carbon credit marketplace.
Mr Kerry said “no” to the question of if there was today proper scrutiny of carbon markets for the initiative to be successful.
“But we are absolutely determined in this effort. And we have all of those stakeholders at the table, in order to be able to make sure that there is transparency, that there is accountability, that this is not a phoney process.
“But we have a challenge, which is being able to get companies and countries to be able to transition more rapidly to reduce emissions. We want it to be a gold standard measurement of emissions reduction and enticement for companies and countries to be able to engage in that reduction.”
Commenting on the nuclear fusion breakthrough announced by the US Department of Energy in December, Mr Kerry called it a “welcome breakthrough … [that] is not going to solve our immediate problem”, adding that it would be at least 20 years before a nuclear fusion energy might be commercially viable.
On the question of his legacy as the first climate envoy for the US, Mr Kerry, who turns 80 this year, indicated his work is unfinished.
“I want to get the job done,” he said. “I want to make sure we are on the road with clarity to do real things, not rhetorical, but real things that are going to make life better. And guarantee we can leave our kids and our grandkids, the world that they deserve.
"It's exciting. There are huge, positive economic and health and security possibilities here. I mean, this is a winner. In terms of life itself on the planet. If we do what we know we have to do.”
When is VAR used?
• Goals
• Penalty decisions
• Direct red-card incidents
• Mistaken identity
No Shame
Lily Allen
(Parlophone)
Name: Colm McLoughlin
Country: Galway, Ireland
Job: Executive vice chairman and chief executive of Dubai Duty Free
Favourite golf course: Dubai Creek Golf and Yacht Club
Favourite part of Dubai: Palm Jumeirah
MEDIEVIL%20(1998)
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GULF MEN'S LEAGUE
Pool A Dubai Hurricanes, Bahrain, Dubai Exiles, Dubai Tigers 2
Pool B Abu Dhabi Harlequins, Jebel Ali Dragons, Dubai Knights Eagles, Dubai Tigers
Opening fixtures
Thursday, December 5
6.40pm, Pitch 8, Abu Dhabi Harlequins v Dubai Knights Eagles
7pm, Pitch 2, Jebel Ali Dragons v Dubai Tigers
7pm, Pitch 4, Dubai Hurricanes v Dubai Exiles
7pm, Pitch 5, Bahrain v Dubai Eagles 2
Recent winners
2018 Dubai Hurricanes
2017 Dubai Exiles
2016 Abu Dhabi Harlequins
2015 Abu Dhabi Harlequins
2014 Abu Dhabi Harlequins
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
COMPANY PROFILE
Name: Rain Management
Year started: 2017
Based: Bahrain
Employees: 100-120
Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
'Shakuntala Devi'
Starring: Vidya Balan, Sanya Malhotra
Director: Anu Menon
Rating: Three out of five stars
THE LOWDOWN
Photograph
Rating: 4/5
Produced by: Poetic License Motion Pictures; RSVP Movies
Director: Ritesh Batra
Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz
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Naga
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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.”
Studying addiction
This month, Dubai Medical College launched the Middle East’s first master's programme in addiction science.
Together with the Erada Centre for Treatment and Rehabilitation, the college offers a two-year master’s course as well as a one-year diploma in the same subject.
The move was announced earlier this year and is part of a new drive to combat drug abuse and increase the region’s capacity for treating drug addiction.