A helicopter operates over a wildfire burning in Gennadi village, on the Aegean Sea island of Rhodes, in south-eastern Greece last week. AP Photo
A helicopter operates over a wildfire burning in Gennadi village, on the Aegean Sea island of Rhodes, in south-eastern Greece last week. AP Photo
A helicopter operates over a wildfire burning in Gennadi village, on the Aegean Sea island of Rhodes, in south-eastern Greece last week. AP Photo
A helicopter operates over a wildfire burning in Gennadi village, on the Aegean Sea island of Rhodes, in south-eastern Greece last week. AP Photo


Climate change is becoming a bread-and-butter issue in the West


  • English
  • Arabic

July 31, 2023

Clement Beaune, the rising star of French politics, is one of several members of Emmanuel Macron’s cabinet letting the world know he is holidaying in southern France this year. With the lower reaches of the Mediterranean aflame with raging wildfires, it would seem a prudent decision not to venture abroad.

Record temperatures are not one-offs anymore, but a phenomenon predicted to become the norm. Scientists have said that what is regarded as frightening or endangering this year or last year will come to be regarded as cool by the turn of the present century. By that stage, Mr Beaune’s successors may be vacationing in Brittany or Normandy, the temperate maritime parts of France.

Given the weather conditions this year, the French cabinet is unlikely to be in the north. Like the UK, northern France is distinctly lacking in balmy or reliably sunny conditions this year. After last year’s freakishly hot spell, the mercury is topping out just above 20°C – about half the levels seen 12 months ago.

Memories are short, and for some it is easy to forget that it was the warmest June on record in these climes as July wraps up. Which to say that an era of subjective climate change has well and truly got under way in Europe. The same is true in America.

A few decades ago, the only parts of the planet that could truly claim this experience were low-lying states and some of the world’s worst-positioned developing nations, such as Bangladesh. Back in 2009, the Maldives government famously held a cabinet meeting in the sea to highlight their plight.

Nations from China to the South-Pacific states have long made the point that climate change must force recognition from the developed states that they were the ones to benefit from unleashing tonnes of carbon into the atmosphere first.

Offshore wind turbines at the Scroby Sands Wind Farm near Great Yarmouth, UK last year. Bloomberg
Offshore wind turbines at the Scroby Sands Wind Farm near Great Yarmouth, UK last year. Bloomberg
Now that climate change is a seasonal reality for even the most prosperous countries, a step change is inevitable in how the battle is fought

The global picture has seen worldwide negotiations drag amid disputes on how to bring about a more equitable and fair transition, as well as deliver compensation for the outright losses of climate change.

Now that climate change is a seasonal reality for even the most prosperous countries, a step change is inevitable in how the battle is fought. Moving beyond international stalemate and domestic timidity lies ahead for politicians of Mr Beaune’s generation – the transport minister is 41.

Backlashes against green policies are widely reported, often as a kind of death knell for the governing parties.

The rollout of heat pump incentives in Germany to move away from gas or boiler-based heating systems has downturned the fortunes of the governing coalition comprised of the Social Democrats and the Greens. The perils of a badly designed transition policy are not unique to Germany’s push to meet net-zero commitments.

The UK’s political debate in recent weeks has been caught up in reassessing its pathway to net zero. In particular, the London Ulez car emissions scheme extension is now in the eye of the national political storm. The government is poised to launch a wholesale “culture war” campaign against how ethical, social and governance (ESG) precepts are interpreted.

France is not too far away from the Gilet Jaunes protests over fuel prices, which have haunted Mr Macron’s ecological programme. Small wonder that Mr Beaune has been told by his boss to “keep a lookout” on his department while away.

What is happening is a closing of the disconnect between people and the target-based policies that the political class have been promoting over the past decade.

To bridge that gap, climate needs to become as fundamental to governments as taxation or defence. That way, voters in western countries could take responsibility at elections by determining the political priority – and, importantly, reconcile themselves to the outcome as time goes on.

Installing capacity for renewable and other non-carbon forms of electricity is a policy that has worked very well for many European countries. But there have been setbacks.

The UK lost its leadership in the climate fight when it decided in 2015 that onshore wind turbine installations would be virtually banned, mainly in England, because of the bizarre idea that the giant turning blades did not look nice.

Mayor Kees van Rooij of Meierijstad meets with farmers during a demonstration against the Dutch government's plans to cut nitrogen emissions in Veghel, the Netherlands last year. AFP
Mayor Kees van Rooij of Meierijstad meets with farmers during a demonstration against the Dutch government's plans to cut nitrogen emissions in Veghel, the Netherlands last year. AFP

A similar act of self-harm is now on the cards as the government, responding to its low polls, is likely to decide that solar farms are cannibalising productive land that could be used for sustainable agriculture.

Raising the role of the climate fight as a priority would see fully fleshed-out policy approaches. Deciding, for example, that the UK’s housing stock be upgraded would require a government-backed plan that covered every part of the undertaking, from the size of the skilled workforce needed to the allocation of upgrades.

It would also require a look at how countries could make their own priorities fit within the global need. Countries such as Ireland and the Netherlands have been attempting to reduce global greenhouse gas emissions from the agriculture sector. The latter has struggled to accomplish this, given farmer concerns that radical changes to cut emissions will affect, and perhaps even destroy, their livelihoods.

There is no one technological solution to the emission from cattle – the voters can see that and have reacted accordingly. The Dutch government has now collapsed over this and other issues, and it is not good enough to simply bemoan the unrealistic nature of the backlash.

Polls show that voters are broadly behind climate change policies. Even those voters who are turning against the leaderships are targeting specific policies. In many cases, these initiatives are either poorly set up or are totally inadequate offerings.

That is the climate change challenge of European politics, not the overall battle to stop something that is bearing down in increasingly real and horrible ways.

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

DIVINE%20INTERVENTOIN
%3Cp%3EStarring%3A%20Elia%20Suleiman%2C%20Manal%20Khader%2C%20Amer%20Daher%3C%2Fp%3E%0A%3Cp%3EDirector%3A%20Elia%20Suleiman%3C%2Fp%3E%0A%3Cp%3ERating%3A%204.5%2F5%3C%2Fp%3E%0A

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.”

MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

Five%20calorie-packed%20Ramadan%20drinks
%3Cp%3E%3Cstrong%3ERooh%20Afza%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20contains%20414%20calories%0D%3Cbr%3E%3Cstrong%3ETang%20orange%20drink%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20serving%20contains%20300%20calories%0D%3Cbr%3E%3Cstrong%3ECarob%20beverage%20mix%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20serving%20contains%20about%20300%20calories%0D%3Cbr%3E%3Cstrong%3EQamar%20Al%20Din%20apricot%20drink%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20saving%20contains%2061%20calories%0D%3Cbr%3E%3Cstrong%3EVimto%20fruit%20squash%3C%2Fstrong%3E%0D%3Cbr%3E100ml%20serving%20contains%2030%20calories%3C%2Fp%3E%0A
Updated: July 31, 2023, 5:00 AM