Sheikha Shamma calls for carbon tax to fight climate change


Shuchita Gautam
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Sheikha Shamma bint Sultan has called for stronger laws and carbon tax policies to combat environmental pollution around the world.

The great-granddaughter of Founding Father Sheikh Zayed said she was a “strong supporter of the ‘polluter pays the principle’ theory”.

“Those who pollute should bear the expenses of preventing and controlling it to ensure that the environment is in an acceptable state,” she told The National.

“It’s the only way we can effectively move towards a circular economy that tackles global challenges like climate change, biodiversity loss, waste, and pollution.

Each of us has a responsibility to respect and integrate sustainable practices into our daily lives and to keep this at the forefront of decision-making
Sheikha Shamma

“It’s an area that I’ve been championing for the past few years and is very close to my heart.”

Sheikha Shamma, chief executive of Alliances for Global Sustainability, said a carbon waste tax can encourage recycling and sustainable practices.

“We need to have the right policies and legislation in place to support sustainable initiatives, as well as active efforts from all stakeholders, including government entities, regulators, corporates and, of course, the public,” she said.

“But a change in mindset is imperative for us to see any long-term and lasting progress.

“And it is certainly one of our biggest hurdles. We have to educate people about the consequences of our actions, many of which we are already witnessing, such as climate change.”

Last year, Sheikha Shamma became the first person from the Middle East and North Africa to be named as a member of the Yale Centre for Environmental Law and Policy.

The University of Cambridge graduate is working to drive change and is involved initiatives that aim to highlight the work done by the UAE.

“I’ve often found that the West is unaware of the great strides that countries like the UAE have made in the field,” she said.

“So my hope is to share insight and knowledge on the region that can drive potential global collaboration and partnerships.

“The Yale Centre has done exceptional work with Prof Daniel C. Esty, leading it and the primary report used to benchmark countries as part of the environmental performance index.

“I’m very proud of the progress the UAE has made in improving its environmental benchmarks."

She mentioned the UAE's use of innovative agricultural technologies to grow local produce in desert conditions as an example of how far the country has come.

“Not only do these technologies provide relief in terms of food security, but they present an opportunity to diversify the economy, opening new channels for GDP," she added.

“We have all seen how the UAE pioneered economic diversification and moved away from oil dependency more than four decades ago, introducing new sectors such as trade, aviation, tourism and finance.”

In 2015, the UAE adopted the UN Sustainable Development Goals and the 2030 Agenda for Sustainable Development. Six years into the journey, Sheikha Shamma is proud of the country’s achievements.

“We are creating and maintaining a sustainable environment and infrastructure, which remains a core pillar of the UAE’s national agenda. It’s important that we ensure sustainable development while preserving the environment,” she said.

“We strike a balance between economic and social development. We’ve had a very, very clear set of KPIs [key performance indicators] that focus predominantly on clean energy, water, and productivity, as well as the reduction of carbon emissions and energy intensity."

To tackle these, she said, the UAE has committed more than $814 million to renewable energy in more than 30 countries.

"In addition, a number of key initiatives have been launched over the last six years which contribute to these goals.”

She said the Ghantoot Desalination Pilot Plant, which was launched by Masdar in 2013, was another example of using renewable energy to power critical technologies.

Although the UAE has made "significant headway", there is still much to be done to tackle climate change, said Sheikha Shamma.

“If we are to make any real headway in tackling climate change and having a real impact on sustainable development, we need to look at implementing long-term solutions.”

Last month, the UAE announced its intention to reach net zero carbon by 2050 – the first country in the Gulf to make this commitment. The plan will mean Dh600 billion being invested in clean and renewable energy sources in the next three decades.

For the Year of the 50th, which commemorates the UAE's formation in 1971, Sheikha Shamma is turning her attention to expanding some of the major initiatives being driven by Alliances for Global Sustainability.

Her time will also be spent on her social enterprise Mangroves for Mankind, which aims to combat climate change by conserving mangrove ecosystems in coastal cities around the world.

This includes restoration, and educating indigenous communities living in mangrove areas to support their livelihoods.

Sheikha Shamma also plans to continue work on Aurora50, an initiative she co-founded to empower women company directors by giving them the necessary tools to excel in the workplace.

She is also an author, and said her favourite among the books she has written is The Tangled Tale.

“It’s about saving our bees, protecting our mangroves and reducing air pollution," she said.

“It’s a journey of discovery to untangle a web of problems affecting our world."

Sheikha Shamma said saving the environment is a collective responsibility.

“The legacy built by our Founding Father Sheikh Zayed bin Sultan is far-reaching and shows us how much can be achieved through hard work and determination,” she said.

“As we look to the future, my message is that sustainable development is critical for our country, the region and the world.

“Each of us has a responsibility to respect and integrate sustainable practices into our daily lives and to keep this at the forefront of decision making.”

Masdar's achievement in past decade — in pictures

UAE currency: the story behind the money in your pockets

Indoor cricket World Cup:
Insportz, Dubai, September 16-23

UAE fixtures:
Men

Saturday, September 16 – 1.45pm, v New Zealand
Sunday, September 17 – 10.30am, v Australia; 3.45pm, v South Africa
Monday, September 18 – 2pm, v England; 7.15pm, v India
Tuesday, September 19 – 12.15pm, v Singapore; 5.30pm, v Sri Lanka
Thursday, September 21 – 2pm v Malaysia
Friday, September 22 – 3.30pm, semi-final
Saturday, September 23 – 3pm, grand final

Women
Saturday, September 16 – 5.15pm, v Australia
Sunday, September 17 – 2pm, v South Africa; 7.15pm, v New Zealand
Monday, September 18 – 5.30pm, v England
Tuesday, September 19 – 10.30am, v New Zealand; 3.45pm, v South Africa
Thursday, September 21 – 12.15pm, v Australia
Friday, September 22 – 1.30pm, semi-final
Saturday, September 23 – 1pm, grand final

The biog

Favourite Emirati dish: Fish machboos

Favourite spice: Cumin

Family: mother, three sisters, three brothers and a two-year-old daughter

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
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

Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

Company%20Profile
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The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

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.”

UAE currency: the story behind the money in your pockets
Moon Music

Artist: Coldplay

Label: Parlophone/Atlantic

Number of tracks: 10

Rating: 3/5

Updated: November 18, 2021, 4:30 AM