Cop29 is scheduled to take place from November 11 to 22 in Baku, under Azerbaijan's presidency. Getty Images
Cop29 is scheduled to take place from November 11 to 22 in Baku, under Azerbaijan's presidency. Getty Images
Cop29 is scheduled to take place from November 11 to 22 in Baku, under Azerbaijan's presidency. Getty Images
Cop29 is scheduled to take place from November 11 to 22 in Baku, under Azerbaijan's presidency. Getty Images

Azerbaijan's task to make UAE climate vision 'come to life' at Cop29


Tim Stickings
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The UAE is passing its role at the helm of global climate talks to Azerbaijan with a call to help green policies pledged in Dubai last year “come to life”.

Azerbaijan has made finance a key focus as it vows to build on the “crucial milestone” of Cop28 in the UAE.

The “troika” of the UAE, Azerbaijan and Cop30 host Brazil plan to work together to help countries make ambitious new green plans.

But talks in Germany taking place midway between Cop28 and Cop29 confirm it will be no easy task for Azerbaijan to get a deal on the funding needed.

Delegates from Arab countries and small island nations have put forward proposals that would ask for trillions of dollars from rich countries.

Although its presidency does not formally begin until Cop29 in November, Azerbaijan’s team has spent the Bonn talks busily sounding out negotiators.

At UN climate headquarters it has spoken to everyone from island states, scientists and youth delegates to diplomats from the EU, Russia and Arab states.

The UAE remains in the fray as the outgoing presidency and part of the “troika” as it calls for countries to act on what was agreed at Cop28.

The Dubai summit ended with a deal called the UAE Consensus in which countries agreed to “transition away” from fossil fuels and massively scale up clean energy.

It is now up to each country individually to set out by 2025 how they will deliver on those goals, in what is called a nationally determined contribution (NDC) in UN jargon.

“A coherent and responsive new collective finance goal at Cop29 must unlock climate finance at the scale and with the quality needed,” Cop28 chief executive Adnan Amin told diplomats in Bonn.

“This can allow the next generation of NDCs by Cop30 in Brazil to come to life. That is the mission.”

The UAE's Cop28 presidency cited recent flooding in the Gulf as an example of extreme weather demanding action. AFP
The UAE's Cop28 presidency cited recent flooding in the Gulf as an example of extreme weather demanding action. AFP

Mr Amin said recent extreme weather such as flooding in the Gulf, tornadoes in North America and cyclones in India “makes the work ahead of us even more important”.

“These events and climate shocks are no longer a forecasted scenario in climate modelling,” he said. “They are happening now, and they are becoming more frequent, and they are becoming more deadly.”

Milestone moment

Samir Bejanov, the deputy chief negotiator from Azerbaijan’s Cop29 team, said the outcome in Dubai was a “crucial milestone guiding us on the path” to limiting global warming.

The gas-rich former Soviet republic has said the outcome of Cop28 in the UAE shows it makes sense to have fossil fuel exporters at the heart of climate talks.

“As the incoming presidency, we aspire for Cop29 to be a force for good connecting north, south, east and west and mobilising the international community to combat climate change,” Mr Bejanov said.

He said Azerbaijan’s plan involves “creating conditions to enable climate action, by agreeing on a new goal for climate finance and shaping the global financial architecture to support our planet”.

Dr Sultan Al Jaber, Cop28 President and UAE Minister of Industry and Advanced Technology, meeting senior officials from Azerbaijan at talks in Berlin in April. Photo: Cop28
Dr Sultan Al Jaber, Cop28 President and UAE Minister of Industry and Advanced Technology, meeting senior officials from Azerbaijan at talks in Berlin in April. Photo: Cop28

One regular summit-goer from India told The National that Azerbaijan was making the right signals by calling for a “fair and ambitious” finance goal and seeing the talks as a “political opportunity” to repair trust in the process.

“I’m sure Azerbaijan, as a developing country itself, will be invested in furthering this conversation and ensuring an ambitious outcome at Cop29,” Avantika Goswami from the Centre for Science and Environment in New Delhi said.

She said making a finance deal in Baku will be a “tough challenge”, given funding has been the single stickiest item in UN climate negotiations since they began in the 1990s.

Azerbaijan “will face a lot of pressure from developed country partners,” she said. “It’s going to be difficult but I do believe that they have good intent to make sure that this is an ambitious outcome.”

As well as stressing finance, Azerbaijan has sought to build an image as a peacemaker after a breakthrough in peace talks with neighbour Armenia cleared the way for Cop29 to go to Baku.

The country has called for a “Cop truce” as it takes forward work from a first ever day of talks dedicated to “relief, recovery and peace” at Cop28, where 93 countries backed a declaration that conflict can add to people’s climate vulnerability.

The Cop28 summit in the UAE ended with an agreement to 'transition away' from fossil fuels. EPA
The Cop28 summit in the UAE ended with an agreement to 'transition away' from fossil fuels. EPA

At a time of global tensions, UN climate chief Simon Stiell rallied negotiators arguing over texts in Bonn committee rooms by telling them “words on paper can change the world”.

“In Dubai we agreed on a historic series of actions to respond to the Global Stocktake,” he said, referring to a once-every-five-years progress check on climate action.

“Now we have a choice – will we make good on these promises or are they just words on paper?”

Finance debate

At the heart of the talks is the question of what replaces a funding pledge of $100 billion per year for developing countries, which was met two years late in 2022 and became a major grievance in negotiating rooms.

A submission by an alliance of small island states calls for a new sum in the trillions every year until 2035, with rich countries sharing out the cost based on their historical contribution to climate change.

The Arab Group of countries has separately proposed a figure of $441 billion per year, with the aim that this mobilises private funding to bring the total to more than $1 trillion.

Rich-world negotiators have meanwhile hinted that more countries should chip in, such those that are significantly wealthier today than when a list of donors was drawn up in the 1990s.

A figure of almost $6 trillion was used in the Dubai talks to estimate the total cost of implementing national climate plans, with the revised versions of those due by Cop30 in 2025.

The UAE-Azerbaijan-Brazil troika have asked UN Secretary General Antonio Guterres to set up a “coherent system-wide mechanism” that helps countries rewrite their green plans.

Mr Amin said the troika “provides us with an opportunity to connect the ambition under the Global Stocktake with the next critical milestones of our shared process at Cop29 and Cop30”.

He said the Cop28 presidency is “committed to supporting parties through the work of the troika to build international co-operation and an international enabling environment that is fit for purpose”.

“Fit to make the next generation of NDCs significant and meaningful, and to answer to the urgency of the moment and carry the UAE Consensus forward.”

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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

Quick pearls of wisdom

Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”

Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.” 

Her most famous song

Aghadan Alqak (Would I Ever Find You Again)?

Would I ever find you again
You, the heaven of my love, my yearning and madness;
You, the kiss to my soul, my cheer and
sadness?
Would your lights ever break the night of my eyes again?
Would I ever find you again?
This world is volume and you're the notion,
This world is night and you're the lifetime,
This world is eyes and you're the vision,
This world is sky and you're the moon time,
Have mercy on the heart that belongs to you.

Lyrics: Al Hadi Adam; Composer: Mohammed Abdel Wahab

PREMIER LEAGUE FIXTURES

Saturday (UAE kick-off times)

Watford v Leicester City (3.30pm)

Brighton v Arsenal (6pm)

West Ham v Wolves (8.30pm)

Bournemouth v Crystal Palace (10.45pm)

Sunday

Newcastle United v Sheffield United (5pm)

Aston Villa v Chelsea (7.15pm)

Everton v Liverpool (10pm)

Monday

Manchester City v Burnley (11pm)

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Suggested picnic spots

Abu Dhabi
Umm Al Emarat Park
Yas Gateway Park
Delma Park
Al Bateen beach
Saadiyaat beach
The Corniche
Zayed Sports City
 
Dubai
Kite Beach
Zabeel Park
Al Nahda Pond Park
Mushrif Park
Safa Park
Al Mamzar Beach Park
Al Qudrah Lakes 

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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Updated: November 07, 2024, 10:10 AM