A man is seen cycling in London with a dog on his back, following the outbreak of the coronavirus, London, UK, June 9. Toby Melville / Reuters
A man is seen cycling in London with a dog on his back, following the outbreak of the coronavirus, London, UK, June 9. Toby Melville / Reuters
A man is seen cycling in London with a dog on his back, following the outbreak of the coronavirus, London, UK, June 9. Toby Melville / Reuters
A man is seen cycling in London with a dog on his back, following the outbreak of the coronavirus, London, UK, June 9. Toby Melville / Reuters

We can't just cycle our way to a greener world


  • English
  • Arabic

My local bike shop reopened this week and I dropped in to pick up a spare part. The shop is always busy but it seemed unusually frantic, full of bikes, but only three or four for sale. The rest were in for repairs. "No new bikes?" I asked the owner. He shrugged. "Can't get them. Suppliers are quoting end of August, even September for deliveries." Many of the repair bikes looked as if they had recently been rescued from the back of someone's garage or cellar. "Coronavirus bonus," the shop owner explained, saying that the sudden interest in cycling came from so many people becoming reluctant to use buses and trains while the pandemic lasts.

The popularity of cycling suggests Covid-19 could have an even wider benefit for action on climate change, according to Petteri Taalas, the head of the World Meteorological Organisation (WMO). In an interview with New Scientist magazine, Mr Taalas found reasons to be cheerful. "The Covid-19 crisis will change the world," he said. "It's going to have impacts on the mentality of people and governments… this is the mentality that would be needed in solving the climate problem."

A new way of thinking about climate change is desperately needed. The WMO's most recent report says that in the past 20 years we have seen the 19 warmest years on record. The world has broken all records for greenhouse gas emissions, carbon dioxide, methane and nitrous oxide. The WMO is most concerned about carbon dioxide, which Mr Taalas says "has contributed two thirds of the warming so far and its life in the atmosphere is several hundred years." Climate change is not only melting glaciers and raising sea-levels. Crop failures due to lack of fresh water mean around 800 million people are going hungry and 30,000 a day are dying of malnutrition.

Mr Taalas may be right that what we need is not more studies but a change in the way we think and act. It is happening already, not just in my local bicycle shop but across boardrooms of multinational corporations.

Bernard Looney, the chief executive of BP, one of the world's biggest oil companies, has forecast that lower oil prices could be with us for decades. BP has cut price forecasts by about 30 per cent, with the expectation that Brent crude will average $55 a barrel from now until 2050. Airlines and aircraft manufacturers, car makers, dealers and car drivers are having to think differently about what the future may look like.

Like coronavirus itself, no country can tackle climate change alone

As a result of lockdown I have gone from filling my car’s petrol tank at least once a week to filling it just twice in the past three months. But let’s not get too carried away. Changing accounting practices and writing down asset values is the easy part. Will we really no longer want to fly for an exotic holiday? Will we really want to cycle to work in all weathers for years to come?

Mr Taalas notes that the drop in carbon emissions as a result of coronavirus will not have a rapid and significant impact on climate change because so much damage has already been done, and carbon dioxide is so persistent in the atmosphere. But if he is correct about our change in mindset and behaviour, then corporations and consumers will accelerate the green conversion of systems for energy, transport and industry.

Companies like BP and Shell have set a target to become carbon neutral by 2050. Car manufacturers are rapidly changing designs for the future. Many of us have friends and business contacts who are enjoying working from home and are not keen to return to a crowded office. One friend says her company is planning limited socially distanced office meetings once every two weeks, with smaller groups turning up in shifts when it is essential to meet face-to-face. Everything else is done by Zoom.

As I write this, my friend is at home working through a schedule of eleven online meetings. But if scientists and cyclists, small and large corporations, are all planning how to adapt to survive in the post-Covid economy, and in the process thinking about the environment, one piece of the puzzle is missing: global political leadership.

Like coronavirus itself, no country can tackle climate change alone. The UN climate change discussions, known as COP26, were due to take place in Glasgow in November but have been postponed until the spring as a result of the pandemic. Perhaps by then the US will have a president who recognises the existential threat posed by climate change and the need for multinational action. The Trump presidency has wasted four years ignoring a threat to humankind that is potentially more devastating than coronavirus. All the new cycling enthusiasts in the world cannot make up for another four years of doing nothing.

Gavin Esler is a journalist, author and presenter

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

The specs

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Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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

Avatar: Fire and Ash

Director: James Cameron

Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana

Rating: 4.5/5