French president Francois Hollande looks at the effects of climate change on the Solheimajokull glacier in Iceland. (Thibault Camus / EPA)
French president Francois Hollande looks at the effects of climate change on the Solheimajokull glacier in Iceland. (Thibault Camus / EPA)
French president Francois Hollande looks at the effects of climate change on the Solheimajokull glacier in Iceland. (Thibault Camus / EPA)
French president Francois Hollande looks at the effects of climate change on the Solheimajokull glacier in Iceland. (Thibault Camus / EPA)

Countries need to seize the day at Paris climate summit


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Governments across the world are making their final preparations for the UN climate change summit in Paris next month. The event is one of the most ambitious environmental conferences for a generation, and while a deal is likely, it remains unclear how comprehensive it will be.

With all countries involved in setting a framework for reducing greenhouse gas emissions, parliamentarians, industry leaders and academics met in advance of the summit in Paris on September 24.

The scientific consensus reflected in Intergovernmental Panel on Climate Change reports is that global average temperatures will rise by 2°C by 2050. And then continue rising if economic growth based on current technology and agriculture is not reversed.

Last month’s meeting expressed a consensus that technological transformation could enable standards of living to be maintained in the industrialised world, while at the same time reducing carbon emissions substantially enough that developing countries will be able to grow their economies and their emissions up to global per capita levels.

But most countries are equally concerned that environmental policies must also deal with the impacts of severe natural hazards caused by global environmental changes, and special regional effects such as burning forests, the melting of polar ice and desertification. As the UN sustainability goals have emphasised, societies need to become significantly more resilient.

This growing confidence about the potential for future technological and green energy transformations in the developed world is underpinned by several factors. Firstly, there is greater belief that in some countries, reliable and economic technology will be available to provide non-fossil energy for electricity and even for transportation.

The past two decades have provided clear evidence about the reliability of renewable energy systems.

However, winds can be weak and variable, and clouds can obscure solar radiation, so backup energy supplies are used from hydroelectric, or geothermal, or from nuclear fission. Globally, the proportion of non-carbon electrical energy (excluding hydropower) provided by nuclear power is now about 50 per cent.

The shift towards low carbon energy for transport, which uses about 30 per cent of generated energy, is also contentious. Some countries have been introducing fuels that partially reduce carbon emissions, although these fuels, such as diesel, increase air pollution, and are at the centre of the recent scandal surrounding Volkswagen.

Alternatives to coal and oil include use of carbon-neutral fuel derived from crops or solar captured bio-plant. Although introducing hydrogen as a transportable power source produces zero carbon emission, it requires more substantial technology changes both in the vehicle and in the storage and delivery of fuel, which raises concern about explosion risks.

One immediate measure for bringing down carbon emissions is to reduce the speed of road vehicles, shipping and aviation. These cuts are also being advocated (for instance, on motorway signs in some countries) because of their significant health benefits, which may help overcome political and popular resistance to their introduction.

Even more fundamental social transformations towards a green economy are emerging too, such as substituting travel with remote communication by phone, video and internet, and substituting smart local production for transported goods, with 3D printing of products and innovative local food production.

Some 30 to 40 per cent of energy supply in developed countries is accounted for by heating and other services in buildings, although the total amount per dwelling is increasing because of larger usage of water, ventilation and information technology.

However, as these uses become smarter, with intelligent design and control such as by utilising intermittent power, and by optimising designs of internal-external spaces, the total use of energy can be reduced substantially.

Progress in energy use and structure is now coming from remarkable materials technology with new nano-materials improving the insulation and structural properties of wooden beams and walls. And also liquid-gas microchannels used as heat pipes to enable heat to be transferred and stored in smart brick, as pioneered in plastic greenhouses in China.

Governments need to seize the opportunity at the Paris conference to frame their agreements for the long-term based on evidence of the growing effectiveness of low carbon policies and greener economies. As some governments already recognise, these developments also provide a springboard for innovative industry and agriculture, and sustainable developments in social and environmental planning.

However, policies should also be consistent with overall sustainability strategies for ensuring greater resilience of societies and infrastructure against the impacts of natural and artificial hazards.

These are only likely to worsen until human effects on the global environment are brought under much better control.

Lord Hunt is a visiting professor at Delft University of Technology and former director-general of the UK Met Office

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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.”

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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.

GREATEST ROYAL RUMBLE CARD

The line-up as it stands for the Greatest Royal Rumble in Saudi Arabia on April 27

50-man Royal Rumble

Universal Championship
Brock Lesnar (champion) v Roman Reigns

Casket match
The Undertaker v Rusev

Intercontinental Championship
Seth Rollins (champion) v The Miz v Finn Balor v Samoa Joe

SmackDown Tag Team Championship
The Bludgeon Brothers v The Usos

Raw Tag Team Championship
Sheamus and Cesaro v Bray Wyatt and Matt Hardy

United States Championship
Jeff Hardy (champion) v Jinder Mahal

Singles match
Triple H v John Cena

To be confirmed
AJ Styles will defend his WWE World Heavyweight title and Cedric Alexander his Cruiserweight Championship, but matches have yet to be announced

Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
The%20specs
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THE BIO

Age: 30

Favourite book: The Power of Habit

Favourite quote: "The world is full of good people, if you cannot find one, be one"

Favourite exercise: The snatch

Favourite colour: Blue

The biog

Age: 59

From: Giza Governorate, Egypt

Family: A daughter, two sons and wife

Favourite tree: Ghaf

Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

BMW M5 specs

Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor

Power: 727hp

Torque: 1,000Nm

Transmission: 8-speed auto

Fuel consumption: 10.6L/100km

On sale: Now

Price: From Dh650,000

UK-EU trade at a glance

EU fishing vessels guaranteed access to UK waters for 12 years

Co-operation on security initiatives and procurement of defence products

Youth experience scheme to work, study or volunteer in UK and EU countries

Smoother border management with use of e-gates

Cutting red tape on import and export of food

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

BUNDESLIGA FIXTURES

Saturday

Borussia Dortmund v Eintracht Frankfurt (5.30pm kick-off UAE)

Bayer Leverkusen v Schalke (5.30pm)

Wolfsburg v Cologne (5.30pm)

Mainz v Arminia Bielefeld (5.30pm)

Augsburg v Hoffenheim (5.30pm)

RB Leipzig v Bayern Munich (8.30pm)

Borussia Monchengladbach v Freiburg (10.30pm)

Sunday

VfB Stuttgart v Werder Bremen  (5.30pm)

Union Berlin v Hertha Berlin (8pm)