Central to tackling global warming is a move from an economy based on fossil fuels, but recent years have shown that progress is far behind what scientists say is necessary.
The aim of the Paris Agreement on climate change – to limit temperature increases to 1.5°C above pre-industrial levels – is now widely seen as extremely difficult to achieve, putting the spotlight on alternative ways to keep the climate cool.
Geoengineering – large-scale efforts to manipulate processes that affect the climate – is chief among these other approaches.
Deflecting sunlight
The Centre for Climate Repair at the University of Cambridge is promoting a plan that is ambitious in scale and that makes for a memorable soundbite: it wants to refreeze the Arctic.
This would involve sending hundreds or even thousands of ships to the Arctic to create a seawater mist, which would improve cloud cover and deflect more sunlight.
If this was done, sea ice in the Arctic could increase year on year and glaciers on the Greenland land mass could be protected, limiting sea-level rises.
The measure could also reduce the thawing of permafrost in the region, something that otherwise risks releasing large quantities of methane – a potent greenhouse gas.
Dr Shaun Fitzgerald, director of the centre, says that if geoengineering can be shown to work without unacceptable adverse effects then it could buy the world time to get greenhouse gas levels down while preserving Arctic ecosystems
"The timescales involved, because of the inertia of the Earth and, frankly, that of our society, means that without some form of band aid such as geoengineering we’re going to see catastrophic losses in places like the Arctic," he says.
"What goes on in the Arctic doesn’t stay in the Arctic … while you’ve got extensive ice in the Arctic, it provides a buffering and stabilising effect on the whole of the Earth’s climate. If we let that go, it’s going to be absolutely terrible."
The stabilising effect of the Arctic ice comes from the fact that it reflects sunlight and because the melting of ice uses up energy that would otherwise lead to warming.
This can be better understood by thinking of a glass of water containing ice cubes. If the water is heated, its temperature will not rise much above 0°C while there is still ice in the glass.
Once that ice has melted, however, the water will warm much more quickly, something that could happen to seawater if it lost its ice cover.
Wide climatic consequences
The centre’s deputy director, Hugh Hunt, of the university’s department of engineering, describes the Arctic as the air conditioner for the northern hemisphere, drawing air north and cooling it before it moves south again.
"If the Arctic is not so cold, then that circulation is weaker," he says. "And the weakness of that circulation is affecting our weather patterns.
"We’re already seeing that a warmer Arctic is disrupting the jet stream, disrupting the Polar vortex, disrupting weather patterns so that the extremes are becoming more frequent and more extreme. That’s the impact that the warming Arctic is having."
This warming is eroding the glaciers in the Greenland ice shelf, creating meltwater measured in the hundreds of cubic kilometres per year.
"If we lose 10 per cent of the Greenland ice shelf in the next century, that’s the best part of a metre sea-level rise, which means most coastal cities around the world will be seriously hampered. You can’t live in a city which regularly floods," Prof Hunt says.
The task now is to develop the technology so that it could be tested and implemented at scale.
Researchers in Cambridge are among those engaged in this, studying such things as droplet generation for brightening clouds.
Enhancing cloud cover
In the Arctic, the seawater mist created by the ships would dry to leave tiny salt crystals suspended in the air. These salt crystals are swept up to higher altitudes, where they enhance cloud cover and reflect sunlight. This enhances the natural process of cloud formation, where wind and waves create the salt-water mist.
Similar work is being carried out in Australia, where researchers from Southern Cross University are spraying water off a ship to generate clouds that may reduce the heating of the Great Barrier Reef.
Prof Stephen Salter, of the University of Edinburgh in the UK, has designed a ship that could be used in the Arctic to generate mist.
The vessels, which could be operated remotely, would pick up energy from the water and the wind, so their operation would not generate significant carbon emissions.
But with projects of the kind being envisaged there could be unintended consequences and Prof Hunt acknowledges that any scheme to increase cloud cover and reflect more of the sunlight that hits the Arctic is "not without risk".
He also says that the work of the centre, which was founded three years ago by Sir David King, a South African-born chemist who was the British government’s chief scientific adviser and special representative for climate change, remains at an early stage and is being done "on a shoe string".
"The technology isn’t ready yet, the research hasn’t been done, the actual practical hardware research is still in its infancy," Prof Hunt says.
"If you compare where we’re at with driverless cars or AI or lots of other controversial things, the technologies for geoengineering are just beginning. If you’re asking can we do it, I’m pretty sure we can, but we’re way behind in actual technology."
Billions of dollars of investment needed
The centre is hoping to secure additional funding to complement its current supporters, who include philanthropists, trusts and foundations.
Millions of dollars is needed to further develop the methods, while the cost of running the scheme would probably run into billions of dollars.
But the costs to the world in not acting are estimated by the centre to run into the trillions, ranging from spending on sea defences to losses in agricultural productivity and the costs of mass climate-induced migration.
"If we can, for example, halt the loss of ice on Greenland and Antarctica we’re going to be saving a huge amount of money," Dr Fitzgerald says.
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.”
Fireball
Moscow claimed it hit the largest military fuel storage facility in Ukraine, triggering a huge fireball at the site.
A plume of black smoke rose from a fuel storage facility in the village of Kalynivka outside Kyiv on Friday after Russia said it had destroyed the military site with Kalibr cruise missiles.
"On the evening of March 24, Kalibr high-precision sea-based cruise missiles attacked a fuel base in the village of Kalynivka near Kyiv," the Russian defence ministry said in a statement.
Ukraine confirmed the strike, saying the village some 40 kilometres south-west of Kyiv was targeted.
If you go
The flights
Etihad (etihad.com) flies from Abu Dhabi to Luang Prabang via Bangkok, with a return flight from Chiang Rai via Bangkok for about Dh3,000, including taxes. Emirates and Thai Airways cover the same route, also via Bangkok in both directions, from about Dh2,700.
The cruise
The Gypsy by Mekong Kingdoms has two cruising options: a three-night, four-day trip upstream cruise or a two-night, three-day downstream journey, from US$5,940 (Dh21,814), including meals, selected drinks, excursions and transfers.
The hotels
Accommodation is available in Luang Prabang at the Avani, from $290 (Dh1,065) per night, and at Anantara Golden Triangle Elephant Camp and Resort from $1,080 (Dh3,967) per night, including meals, an activity and transfers.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
First Person
Richard Flanagan
Chatto & Windus
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
UNSC Elections 2022-23
Seats open:
- Two for Africa Group
- One for Asia-Pacific Group (traditionally Arab state or Tunisia)
- One for Latin America and Caribbean Group
- One for Eastern Europe Group
Countries so far running:
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Red flags
- Promises of high, fixed or 'guaranteed' returns.
- Unregulated structured products or complex investments often used to bypass traditional safeguards.
- Lack of clear information, vague language, no access to audited financials.
- Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
- Hard-selling tactics - creating urgency, offering 'exclusive' deals.
Courtesy: Carol Glynn, founder of Conscious Finance Coaching
The specs: 2018 Audi R8 V10 RWS
Price: base / as tested: From Dh632,225
Engine: 5.2-litre V10
Gearbox: Seven-speed automatic
Power: 540hp @ 8,250rpm
Torque: 540Nm @ 6,500rpm
Fuel economy, combined: 12.4L / 100km