The UAE's Mohammed bin Rashid Al Maktoum Solar Park is one of the world's largest renewable energy projects. Pawan Singh / The National
The UAE's Mohammed bin Rashid Al Maktoum Solar Park is one of the world's largest renewable energy projects. Pawan Singh / The National
The UAE's Mohammed bin Rashid Al Maktoum Solar Park is one of the world's largest renewable energy projects. Pawan Singh / The National
The UAE's Mohammed bin Rashid Al Maktoum Solar Park is one of the world's largest renewable energy projects. Pawan Singh / The National


Inconvenient truths: Those opposing Cop28 leadership should face own reality


Navdeep Suri
Navdeep Suri
  • English
  • Arabic

May 26, 2023

The letter signed by a group of European MPs and Congressional representatives from the US seeking the removal of Dr Sultan Al Jaber from the position of President-designate of Cop28 is simply astounding, at multiple levels.

It is brazenly condescending in that "we know what’s best for you" approach that continues to linger in scattered Western redoubts. It makes sweeping generalisations and tries to scare us into seeing the global hydrocarbons industry as a gigantic, evil monolith. And it deliberately promotes a half-truth by projecting Dr Al Jaber as the chief executive of Adnoc while staying silent about his seminal work to promote renewable energy over the past two decades, first as the chief executive of Masdar and later as its chairman. It clearly finds Dr Al Jaber's position as UAE’s Minister for Industry and Advanced Technology and as the country’s Special Envoy for Climate Change an inconvenient truth that can be brushed under the carpet.

Fossil fuels have, of course, contributed in large measure to the climate crisis in which Mother Earth finds itself today. The industrial revolutions in Europe and the US were powered by coal in the 19th Century and by oil in the 20th century. That is why the US has contributed 24 per cent of global emissions and Europe makes up for 17 per cent. The science on climate change is unequivocal about who is responsible for the present state of affairs.

It is also blindingly obvious that developing countries such as India will have to adopt low carbon pathways for their own development because there simply isn’t any other viable alternative. And yet, where is the money that will enable countries such as India to get access to the latest technology breakthroughs to facilitate the green transition? Where are the resources for the loss and damage being inflicted by extreme climate events upon countries that have a negligible carbon footprint? Let’s not speak about the financial commitments made by the governments of these countries from Cop21 in Paris in 2015 to last year's Cop27 in Sharm El Sheikh. That’s an inconvenient truth.

So, here’s a question to the distinguished elected representatives who have signed this letter: what is their view on climate justice? Would they vote for additional taxes on their citizens so that their own governments can live up to promises made since the Paris Agreement? Would they campaign for a change in lifestyles that lowers the carbon footprint of their own citizens?

A disruption in gas supplies following the invasion of Ukraine has already led Germany to permit more than 20 coal-based power plants to resume or extend their operations, in a dramatic reversal of its earlier opposition to coal. Heated homes in Europe and air conditioning in the US are almost an inviolable human right but do spare a thought for the hundreds of millions in the Global South who have minimal or no excess to any energy.

The letter also takes a swipe at the UAE’s plans to increase its oil output but the authors seem to have already forgotten the howls of protest from their own governments last year when Opec refused to increase oil output despite their urging. That almost provoked a diplomatic crisis and sent US President Joe Biden rushing to Saudi Arabia so that oil prices didn’t become an issue in the US mid-term elections.

Higher prices of oil and gas may push the world faster towards a green transition but they make for bad politics. And so the US is quite happy to expand its shale oil and gas output to emerge as the world’s largest hydrocarbons producer by quite a margin in 2022: 20 million barrels a day and counting. That must be an inconvenient truth for the authors of the letter.

Get the fossil fuel industry to deploy its vast technical and financial resources into cleaner technologies

We might ignore their tendency to play fast and loose with the facts, but there is a more serious issue at stake. Even the most staunch supporters of the United Nations Framework Convention on Climate Change process would acknowledge that progress on climate action has been profoundly underwhelming. We continue to hurtle towards a climate disaster despite the intentions expressed at each Cop gathering.

Scapegoating the fossil fuels industry just won’t work because oil and gas will continue to underpin the global economy for years to come. I wish electric vehicles would replace all petrol and diesel vehicles, that solar and wind energy and green hydrogen should power everything from tomorrow. But the transition is going to take time and that is another inconvenient truth.

Instead of treating the fossil fuels industry as outcasts who must be kept outside the conversations at Cop28, as the letter suggests, the time has come to try an alternative approach. Make the fossil fuel industry a partner in the green transition. Get them to deploy their vast technical and financial resources into cleaner technologies. Encourage them to walk the talk and hold them accountable.

And that’s where Cop28 and its President-designate can play such a key role. The UAE has shown that it can use its oil wealth to create a new paradigm – an oil-rich country that hosts the International Renewable Energy Agency, that has set up the first nuclear energy plant in the Middle East, that has created an organisation like Masdar to invest in renewable energy projects across 40 countries.

That is the model which needs to be scaled up and replicated by other hydrocarbons industry giants. It is a conversation that is overdue and one that could be best organised by someone like Dr Al Jaber, who has worked in both the fossil fuels and the renewable energy sectors. His presidency could be a unique asset for Cop28. The signatories of the letter must accept that as an inconvenient truth and stop undermining Cop28 before it has begun.

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Married Malala

Malala Yousafzai is enjoying married life, her father said.

The 24-year-old married Pakistan cricket executive Asser Malik last year in a small ceremony in the UK.

Ziauddin Yousafzai told The National his daughter was ‘very happy’ with her husband.

The specs
Engine: 2.0-litre 4-cyl turbo

Power: 201hp at 5,200rpm

Torque: 320Nm at 1,750-4,000rpm

Transmission: 6-speed auto

Fuel consumption: 8.7L/100km

Price: Dh133,900

On sale: now 

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

If you go

The flights

Etihad and Emirates fly direct from the UAE to Chicago from Dh5,215 return including taxes.

The hotels

Recommended hotels include the Intercontinental Chicago Magnificent Mile, located in an iconic skyscraper complete with a 1929 Olympic-size swimming pool from US$299 (Dh1,100) per night including taxes, and the Omni Chicago Hotel, an excellent value downtown address with elegant art deco furnishings and an excellent in-house restaurant. Rooms from US$239 (Dh877) per night including taxes. 

Scoreline

Chelsea 1
Azpilicueta (36')

West Ham United 1
Hernandez (73')

Heavily-sugared soft drinks slip through the tax net

Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.

Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.

A 680ml can of Arizona Iced Tea costs just Dh6.

Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.

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.”

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Company%20Profile
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Updated: June 02, 2023, 6:56 AM