ABU DHABI // Government bodies have gathered to discuss plans for a climate change strategy that would help to cut harmful emissions.
Organised by the Environment Agency Abu Dhabi, or Ead, Tuesday’s meeting was the first step in drafting a plan of action, to be introduced between next year and 2018, that will reduce the amount of greenhouse gases released and help adapt to climate change.
Senior representatives from the Abu Dhabi National Oil Company, Abu Dhabi Water and Electricity Authority, the Urban Planning Council, Abu Dhabi Department of Economic Development and the ministries of environment, energy and foreign affairs were among those taking part.
Eva Ramos, a director at Ead, said the wide representation was necessary to ensure Abu Dhabi takes meaningful steps to solve the problem.
“We must catalyse action to mitigate and adapt to climate change across all relevant economic and social sectors,” Ms Ramos said.
“Environmental organisations alone cannot deliver the scale of change required.”
Changing to low-carbon energy and utilities, managing the demand for energy, and reducing the carbon footprint of transport systems, buildings and industry were priorities, the workshop was told.
Those present also detailed priorities to help protect Abu Dhabi against the expected effects of climate change.
Ead will spend the next two months in individual discussions with the groups involved in the workshop, said Ms Ramos.
“The idea is that we will engage with entities so that we agree on targets and initiatives,” she said.
A strategy document should be ready by the end of the year. It will have to be approved by the concerned groups as well as the Abu Dhabi Executive Council before its measures are put in place.
“We hope the first initiatives will start in 2014,” said Ms Ramos.
The Greenhouse Gas Inventory for Abu Dhabi, released by Ead in May, says the emirate emits 47.62 tonnes of carbon-dioxide equivalent for each head of population a year.
This refers to emissions of carbon dioxide, the main greenhouse gas, and nine others that contribute to global warming.
Energy services, road transport, and aluminium, iron and steel production are the biggest emitters of greenhouse gases in the emirate. The study reflects Abu Dhabi’s emissions for 2010.
Because of plans to expand its industrial base, total emissions are expected to rise in future.
But the Government hopes to reduce per capita emissions through more efficient use of fossil fuels.
“There is a desire to contain emissions but also a desire not to hamper economic development,” said Ms Ramos.
vtodorova@thenational.ae
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
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.”
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%201.8-litre%204-cyl%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E190hp%20at%205%2C200rpm%0D%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20320Nm%20from%201%2C800-5%2C000rpm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESeven-speed%20dual-clutch%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%3C%2Fstrong%3E%206.7L%2F100km%0D%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh111%2C195%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%3C%2Fp%3E%0A
