The direction of America's climate change strategy will be decided by the US election battle between Donald Trump and Kamala Harris. Reuters
The direction of America's climate change strategy will be decided by the US election battle between Donald Trump and Kamala Harris. Reuters
The direction of America's climate change strategy will be decided by the US election battle between Donald Trump and Kamala Harris. Reuters
The direction of America's climate change strategy will be decided by the US election battle between Donald Trump and Kamala Harris. Reuters

Trump or Harris? Uncertain US political climate looms over Cop29


John Dennehy
  • English
  • Arabic

The ramifications of a bitterly fought US election on November 5 are set to be felt around the world, including at crunch climate talks set to begin only days later at Cop 29 in Azerbaijan.

The possible re-election of climate sceptic Donald Trump is looming large and could influence how key negotiations play out in Baku. Seasoned observers believe that some major emitters will be waiting for the result before they finalise their own climate pledges.

They also point out that negotiators at Cop29 know the US could leave the Paris Agreement and even the entire UNFCCC convention - if Mr Trump secures victory.

He withdrew the US from the Paris deal in 2017 and his campaign said he will do so again if re-elected as president. But they also say a Trump victory won’t end global climate action as the world is a different place.

Urgent need for climate action

The task ahead is urgent, with a major report released by the UN on Thursday warning the 1.5°C goal was slipping out of reach. The "Emissions Gap" report said a continuation of current policies could lead to a catastrophic temperature rise of up to 3.1°C and unthinkable consequences.

So what impact would either Mr Trump, the Republican candidate or Kamala Harris, the Democratic Party's presidential hopeful, have on Cop29?

Trump’s long shadow

Mr Trump's first victory came in 2016 during the Cop22 talks in Marrakesh. It didn't directly affect the negotiating positions but the victory hit hard.

Karim Elgendy, climate expert and associate fellow at British think tank Chatham House, said his win "sent shockwaves" through the negotiations.

"While the incoming administration won't have time to change the formal US position at Cop29, its expected future stance can significantly influence the already fragile dynamics," he said.

Simon Evans, deputy editor of Carbon Brief, the UK-based climate specialist website, said the impact of the first Trump win was felt particularly in 2017 at Cop23 after he'd announced his intention to pull the US out of the Paris Agreement.

“Cop23 also saw the launch of a ‘we are still in' group of sub-national actors from the US, including cities, states and businesses. I would expect to see the launch of a similar coalition if Trump is elected for a second time," said Mr Evans. Carbon Brief has previously published analyses indicating a repeat Trump victory could add four billion tonnes of US emissions by 2030.

Donald Trump, at the time US president, gestures to show how global temperatures have changed as he announces in 2017 that the US would withdraw from the milestone Paris climate deal. Reuters
Donald Trump, at the time US president, gestures to show how global temperatures have changed as he announces in 2017 that the US would withdraw from the milestone Paris climate deal. Reuters

For Cop29, Mr Evans also said some countries could be adapting a wait-and-see approach.

"My understanding is that some major emitters will be waiting for the election result before they finalise their own climate pledges," he said. "And negotiators will be under no illusions that the US will be leaving the Paris Agreement – and potentially even the UN climate convention – if Trump wins a second term."

Mr Elgendy said the the potential UNFCCC move "would be far more devastating for global climate action".

"Even the signal of US disengagement could unravel the efforts to create consensus around ambitious climate finance commitments at Cop29," he said. "It would also embolden other countries resistant to climate action."

Bob Ward, policy director at the Grantham Institute for Climate Change at the London School of Economics, further warned that Mr Trump could withdraw from the UNFCCC convention given his “apparent rejection of both climate science and international co-operation”.

“This will have a damaging impact on the international negotiations but will not destroy them,” he said.

US presidential hopeful Kamala Harris attended Cop28 in Dubai. EPA
US presidential hopeful Kamala Harris attended Cop28 in Dubai. EPA

What we know about Kamala Harris

President Joe Biden reversed Mr Trump’s decision to pull the US out of the Paris deal. He also passed the "Inflation Reduction Act", which funnelled billions of dollars to bolster renewable energy, cleaner manufacturing and electric vehicles.

Ms Harris has yet to fully outline her climate plans. But in August, she mentioned climate in her acceptance speech for the Democratic Party’s nomination and is expected to broadly continue President Biden's trajectory.

“She has given relatively limited indications of how she would approach climate change," said Mr Evans.

“But she is ‘committed to continuing and building upon the US's international climate leadership’ and the Democratic election platform reiterates climate policy priorities set out under the Biden administration.”

The crucial aspect, noted Mr Elgendy, surrounds finance and "how much is the US willing to contribute to it."

  • Azerbaijan's capital Baku will host the UN Cop29 climate summit in November. All photos: Pawan Singh / The National
    Azerbaijan's capital Baku will host the UN Cop29 climate summit in November. All photos: Pawan Singh / The National
  • Baku Stadium is the venue for the crucial talks
    Baku Stadium is the venue for the crucial talks
  • Ilham Aliyev, president of Azerbaijan, during the Shusha Global Media Forum. Mr Aliyev said the country wanted to have a good outcome
    Ilham Aliyev, president of Azerbaijan, during the Shusha Global Media Forum. Mr Aliyev said the country wanted to have a good outcome
  • Cop29 signs have started to appear in Baku
    Cop29 signs have started to appear in Baku
  • Hikmet Hajiyev, foreign policy adviser to Azerbaijan’s president, said Armenia – which was recently at war with Azerbaijan – was invited to Cop29
    Hikmet Hajiyev, foreign policy adviser to Azerbaijan’s president, said Armenia – which was recently at war with Azerbaijan – was invited to Cop29
  • Azerbaijan is boosting renewable energy, such as at this Masdar operated solar farm called Garadagh
    Azerbaijan is boosting renewable energy, such as at this Masdar operated solar farm called Garadagh
  • But Baku has a long fossil fuel history, with oil derricks seen here and the stadium in the background
    But Baku has a long fossil fuel history, with oil derricks seen here and the stadium in the background
  • The spectacular oil rush was driven by entrepreneurs such as two of Sweden’s Nobel brothers. The Nobels installed oil pipelines and built the world’s first oil tanker. Seen here is a statue of Alfred Nobel at the Nobel museum in Baku
    The spectacular oil rush was driven by entrepreneurs such as two of Sweden’s Nobel brothers. The Nobels installed oil pipelines and built the world’s first oil tanker. Seen here is a statue of Alfred Nobel at the Nobel museum in Baku
  • Azerbaijan has a rich cultural history to showcase for those attending Cop29
    Azerbaijan has a rich cultural history to showcase for those attending Cop29
  • Baku's old city sits alongside newer buildings as the country develops using its oil wealth
    Baku's old city sits alongside newer buildings as the country develops using its oil wealth
  • Traditional-style construction in Baku
    Traditional-style construction in Baku
  • Stunning architecture in Baku's old city
    Stunning architecture in Baku's old city
  • Crafts for sale in Baku old city
    Crafts for sale in Baku old city
  • Up to 50,000 people are expected in Baku for Cop29
    Up to 50,000 people are expected in Baku for Cop29

What are the major challenges for Cop29?

Countries at the last summit agreed a historic deal to “transition” away from fossil fuels and triple renewable energy.

Now the focus turns to finance – how to pay for all this. Countries need to agree a new target to replace the $100 billion a year for developing countries in what is known in UN parlance as the "New Collective Quantified Goal".

Trillions of dollars are believed to be needed but countries remain at odds on how much and who should chip in the most. Vulnerable countries such as the small island states are often frustrated at how hard funds to help them deal with the effects of man-made climate change are to obtain.

Also crucial are US-China relations. Chinese Foreign Minister Wang Yi said he "hoped that the US side would "maintain policy stability". He spoke after meeting US climate envoy John Podesta in September.

Two days of pre-Cop talks in Baku earlier this month failed to resolve the deadlock. Mr Elgendy said uncertainty over the US election meant some countries were hesitant to announce new goals if the US could reverse its position.

"The key negotiation on climate finance - the New Collective Quantified Goal - is particularly sensitive to US political dynamics since it involves substantial financial commitments from developed nations," he said.

A solar farm in China. Beijing's evolving relationship with the US will have a bearing on the future of global climate change efforts. Bloomberg
A solar farm in China. Beijing's evolving relationship with the US will have a bearing on the future of global climate change efforts. Bloomberg

Trump win won’t end global climate action

Whether Mr Trump claims victory or not, experts believe that global climate action isn’t going to abruptly end despite the US election's implications.

The growth of wind and solar power and the decline of coal continued throughout Mr Trump’s term and it is unlikely to stop.

“Another way of saying this is that we have long moved past a world where countries only act on climate for altruistic reasons,” said Mr Evans.

“China's efforts to develop renewables, nuclear, batteries and electric vehicles is largely driven by its desire to boost energy security through reduced fossil fuel imports, as well as to develop the industries of the future,” he said.

“Pakistan has been installing record amounts of cheap solar capacity in response to a years-long electricity crisis and high costs for power from the grid.”

Mr Elgendy said the growth of solar was "unstoppable due to market forces and production capacity growth in China" but the broader question is the pace of change to meet the Paris deal.

"One president can accelerate or delay the energy transition especially on the domestic production front, but the long term trend appears unstoppable due to global momentum," he said.

Mr Ward said Mr Trump also risked undermining trillions of dollars of investment in renewables, electric vehicles and other green industries if he tried to slow down the pace of the transition in the US.

“This would have a damaging impact on the US economy, destroying jobs and creating the prospect of significant tariffs being imposed on American exports that are regarded as dirty compared to the domestic production of clean goods and services in other countries,” he said.

“In addition, Mr Trump is likely to find that he and the US become more isolated internationally, including at the G7 and G20, as other countries face up to the challenges posed by climate change, rather than pretending that they do not exist like Mr Trump.”

Climate change effects in the Middle East - 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
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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Group B

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Updated: November 11, 2024, 6:38 AM