The UAE has set out targets to limit greenhouse gas emissions over the next decade as part of its commitment to the Paris Agreement on climate change.
The country aims to cut emissions by nearly a quarter by 2030 compared to “business as usual”, which does not take into account the latest commitments.
Increases in clean power capacity, especially through solar and nuclear energy, are central to the efforts to battle climate change.
The measures are detailed in the UAE’s second Nationally Determined Contribution, a document just submitted to the Secretariat of the UN Framework Convention on Climate Change as part of the country’s Paris Agreement commitments.
Dr Abdullah Al Nuaimi, Minister of Climate Change and Environment, said the UAE’s “commitment to driving climate action at home and abroad has been steadfast”.
“In the past five years, it has achieved multiple milestones on the climate mitigation and adaptation fronts,” Dr Al Nuaimi said.
“With higher ambitions, the country’s second NDC under the Paris Agreement strengthens the global response to the threat of climate change in line with the country’s commitment to shaping a better future for the current and next generations.”
The country aims to limit greenhouse gas emissions to about 240 million tonnes by 2030, down 22.5 per cent compared to the business as usual figure of 310 million tonnes.
Helped by better technology and tougher regulations, initiatives will promote sustainable agriculture, energy efficiency and clean energy, and cut food waste and transport emissions.
The UAE also wants to increase capacity for carbon capture, use and storage, for which the country set up the region’s first commercial-scale network to speed up technology introduction.
Investments of more than $40 billion mean that clean power capacity in the UAE has increased significantly.
In 2015, it was just over 100 megawatts, but is now 2,400MW and should reach 14,000MW by 2030.
A milestone was reached this year when Unit 1 of the Barakah Nuclear Power Plant in Abu Dhabi emirate began operating.
The plant will eventually have four operational advanced pressurised water reactors with a total generation capacity of 5,600MW.
The UAE also has a National Climate Change Adaptation Programme, which involves sectors such as energy, health, infrastructure and the environment.
By 2030, the country plans to plant 30 million mangrove seedlings, which capture carbon dioxide and protect against climate change effects such as sea level rise.
The UAE has also been active abroad by investing in renewable energy projects worth $16.8bn in 70 countries, and providing $400 million in aid and loans.
Climate change is now one of the world’s biggest political and environmental issues, with average global temperatures having increased 0.18°C a decade since 1981, the US National Oceanic and Atmospheric Administration says.
Research published this year found that since 1979, instances of extreme humid heat, about half of which occurred on the Arabian Peninsula, have doubled.
International efforts go back decades and include the Earth Summit in Rio de Janeiro, Brazil, in 1992, where the UN framework treaty was agreed to and signed.
At a conference, in Warsaw, Poland, in 2013, signatories were asked to publish Intended Nationally Determined Contributions, which evolved into NDCs under the Paris Agreement.
Based on five-year commitments, the Paris Agreement, signed by 196 countries and other authorities in December 2015, aims to limit global average temperature to “well below” 2°C and ideally to 1.5°C above pre-industrial levels.
Submitted in 2015, the UAE’s first NDC said the country aimed for clean energy to account for 24 per cent of the energy mix by 2021.
Bob Ward, of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science, said the UAE's 2020 commitments represented “an advance” on the 2015 submission.
“The target of limiting emissions to about 240 million tonnes by 2030 is presented as a significant cut relative to an upward ‘business as usual’ trend," Mr Ward said.
But he said that current emissions levels, which had increased since 2015, should also be accounted for.
Mr Ward said the UAE’s per capita emissions, at more than 20 tonnes a person a year, were among the world’s highest.
He said reaching net-zero emissions would be "particularly challenging" not just in decarbonising the domestic economy, but also because of the reliance on fossil fuel exports.
“The new pledge recognises the importance of diversifying its economy and the rest of the world should support the Emirates’ efforts in this direction,” Mr Ward said.
He said it was also important to recognise that communities and businesses across the Gulf were among those vulnerable to the effects of climate change, including sea level rise and temperature increases.
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Mohammed bin Zayed Majlis
One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
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.”
PSA DUBAI WORLD SERIES FINALS LINE-UP
Men’s:
Mohamed El Shorbagy (EGY)
Ali Farag (EGY)
Simon Rosner (GER)
Tarek Momen (EGY)
Miguel Angel Rodriguez (COL)
Gregory Gaultier (FRA)
Karim Abdel Gawad (EGY)
Nick Matthew (ENG)
Women's:
Nour El Sherbini (EGY)
Raneem El Welily (EGY)
Nour El Tayeb (EGY)
Laura Massaro (ENG)
Joelle King (NZE)
Camille Serme (FRA)
Nouran Gohar (EGY)
Sarah-Jane Perry (ENG)
The specs
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Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
On sale: now