Prospects for climate accord look bleak



With talks at the Copenhagen climate conference only two days away from their conclusion, the chances that a meaningful agreement can be forged in the remaining hours do not seem great. Indeed, in recent days divisions, particularly between rich and poor countries, have widened. "Much of the tension is focused on whether to keep alive the Kyoto protocol - the existing international climate agreement struck in 1997 - as part of a new deal or replace it with an entirely new treaty," The Financial Times reported. "Developing countries, including China, India and Brazil, want to keep the Kyoto process because it commits developed countries to legally binding emissions cuts without making the same requirements of poorer nations. "But developed countries, led by the US, want a new framework that binds China and other emerging economies to targets. "Victor Fodeke, head of the Nigerian delegation, said the talks would be headed for 'catastrophe' if developed countries tried to abandon the Kyoto process altogether. "[Germany's chancellor, Angela] Merkel said that all sides - including the US and China - must make concessions if a deal was to be reached." In The Guardian, Duncan Clark wrote: "Currently, no deal being seriously considered by the major players in Copenhagen is ambitious enough to give the world an odds-on chance of limiting the temperature rise to 2C above pre-industrial levels - the widely accepted target for avoiding irreversible climate change. "This fact is underlined by a new interactive tool on environmentguardian.co.uk that visualises recent climate scenarios from the Met Office [Britain's meteorological service]. Of all the scenarios, the only one in which the world is more likely than not to avoid a 2C rise is the most ambitious: an emissions peak in 2016 followed by an almost unimaginably ambitious global cut of 4 per cent or 5 per cent per year. And even that scenario could plausibly push temperatures above 2.5C, depending on exactly how the carbon cycle and atmosphere respond to the build-up of greenhouse gases. Besides, it's also far bolder than anything Copenhagen is expected to deliver. "A more realistic best-case outcome of Copenhagen would be an emissions peak in 2020 followed by a cut of 1-2 per cent per year. In this scenario, according to the Met Office figures, the planet would warm by 2.1C to 3.7C this century, with the rise continuing even higher after 2100. "These depressing numbers chime with other assessments, including two websites that tally up the evolving emissions commitments from the countries negotiating in Copenhagen and convert them into future temperature rises. Climate Action Tracker, created by groups including the Potsdam Institute for Climate Impact Research, announced on Monday that even the boldest reductions currently being discussed in Copenhagen go only halfway towards meeting the 2C target. As the national and regional commitments currently stand, we should prepare for a 3.5C rise by 2100, according to the team behind the site." Meanwhile, ice accumulations in both the northern and southern hemespheres are melting rapidly. The Arctic Monitoring and Assessment Programme has issued a new report synthesising the latest scientific findings on the Greenland ice sheet, the Cooperative Institute for Research in Environmental Sciences said. One of the report's most alarming findings is that the discharge of icebergs as a whole has increased by 30 per cent over the past decade. "We know that the Arctic has warmed enormously over the past 50 years and that the temperatures over Greenland have increased by more than twice the global average. Despite these observations, it is deeply surprising and worrying to see the pace of the changes in the Greenland ice sheet", said the report's lead author, Professor Dorthe Dahl-Jensen, from the University of Copenhagen. "Greenland's ice sheet is the single largest body of freshwater ice in the northern hemisphere. It contains around 3 million km3 of ice and, if it were to melt completely, this would cause global sea level to rise by roughly 7 metres. We know that Intergovernmental Panel on Climate Change predicts that by 2100, annual temperatures over the Arctic will be 3 to 8C higher than the average observed during the 1951-1980 period. But already now we are seeing how the areas experiencing surface melt are expanding northwards and that the periods of melt in southern Greenland are getting longer. The development in the last decade has taken scientists by surprise and it is still uncertain how the ice will react to future climate change. Therefore, it is essential to intensify the ice sheet research", said Dr Dahl-Jensen. The New York Times reported on glacial melting in the Andes and its impact on a city close to La Paz, the capital of Bolivia. "The glaciers that have long provided water and electricity to this part of Bolivia are melting and disappearing, victims of global warming, most scientists say. "If the water problems are not solved, El Alto, a poor sister city of La Paz, could perhaps be the first large urban casualty of climate change. A World Bank report concluded last year that climate change would eliminate many glaciers in the Andes within 20 years, threatening the existence of nearly 100 million people. "For the nearly 200 nations trying to hammer out an international climate accord in Copenhagen, the question of how to address the needs of dozens of countries like Bolivia is a central focus of the negotiations and a major obstacle to a treaty. "World leaders have long agreed that rich nations must provide money and technology to help developing nations adapt to problems that, to a large extent, have been created by smokestacks and tailpipes far away. But the specifics of that transfer - which countries will pay, how much and for what kinds of projects - remain contentious. "Last week, a group of the poorest small countries debated whether they would stage a walk-out in Copenhagen if rich nations failed to provide enough money. Todd Stern, the lead negotiator for the United States, while reiterating that the United States would help pay, bridled at the idea that the money was a 'climate debt'. And on Friday, the European Union made an initial pledge to pay $3.5 billion annually for three years to help poor countries cope - though economists project the total cost to be $100 billion or more." The Obama administration has asked the US Congress for $1.2 billion to go toward such a purpose, but Congress has yet to take action on the request.

pwoodward@thenational.ae

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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Sustainable Development Goals

1. End poverty in all its forms everywhere

2. End hunger, achieve food security and improved nutrition and promote sustainable agriculture

3. Ensure healthy lives and promote well-being for all at all ages

4. Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

5. Achieve gender equality and empower all women and girls

6. Ensure availability and sustainable management of water and sanitation for all

7. Ensure access to affordable, reliable, sustainable and modern energy for all

8. Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

9. Build resilient infrastructure, promote inclusive and sustainable industrialisation and foster innovation

10. Reduce inequality  within and among countries

11. Make cities and human settlements inclusive, safe, resilient and sustainable

12. Ensure sustainable consumption and production patterns

13. Take urgent action to combat climate change and its effects

14. Conserve and sustainably use the oceans, seas and marine resources for sustainable development

15. Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

16. Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

17. Strengthen the means of implementation and revitalise the global partnership for sustainable development

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
The specs

Engine: 2.0-litre 4-cyl

Power: 153hp at 6,000rpm

Torque: 200Nm at 4,000rpm

Transmission: 6-speed auto

Price: Dh99,000

On sale: now

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 Kites

Romain Gary

Penguin Modern Classics

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Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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Brief scoreline:

Wales 1

James 5'

Slovakia 0

Man of the Match: Dan James (Wales)

Royal Birkdale Golf Course

Location: Southport, Merseyside, England

Established: 1889

Type: Private

Total holes: 18

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
Price: From Dh139,000
On sale: Now