UAE puts focus on climate finance at UN's top table


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Dr Sultan Al Jaber, the UAE's Special Envoy for Climate Change and Minister of Industry and Advanced Technology, on Wednesday said that billions of people were “highly vulnerable” to climate change and that more money was needed to adapt to a hotter planet.

He told an informal UN Security Council meeting that developing nations needed more finance to adapt to the impacts of rising temperatures and prevent wars from breaking out over scarce resources and sending refugees spilling across borders.

“Climate impacts are a matter of peace and security,” said Dr Al Jaber.

“These impacts are likely to drive significant displacement and competition over resources and, if not addressed, could be the source of many future conflicts.”

Citing UN figures, he said 3.6 billion people were now “highly vulnerable to the effects of climate change, particularly in fragile states” and added that mankind was “reaching the limits of adaptation”.

Developed nations agreed at a climate conference in Paris in 2015 to generate $100 billion in climate finance to assist poor countries each year — but have yet to come good on that pledge.

Dr Al Jaber said this had to change, pointing out that the UAE has provided more than $1bn in financial support to more than 40 nations in need, particularly poor nations and islands likely to be hit by rising sea levels.

“Robust, sustained and ambitious climate finance is a critical enabler of continued climate progress and risk reduction,” he said in his opening remarks. “Greater access to guaranteed finance is critical.”

Featured speakers included US climate envoy John Kerry, his German counterpart Jennifer Morgan and Alok Sharma, a British parliamentarian and president of last year’s Cop26 climate change meeting in Glasgow.

Mr Kerry said “trillions of dollars” were ultimately needed to tackle climate threats and that “no single government, no group of governments can meet the $2.5 to $4.6 trillion deficit that we face in order to effect this transition”.

“We have to work together to fund climate solutions,” said Mr Kerry.

“Without money, nobody is going to be able to make this transition the way we need to. And we need a safe and orderly transition, not a chaotic one.

“So, this is the decisive decade.”

Policymakers need to take the climate crisis more seriously, added Mr Kerry.

“If we legitimately treat this as the existential threat that it is, then we can lay the groundwork for building and rebuilding an even stronger, safer, healthier, more stable world,” he said.

Mr Sharma said climate change was already wreaking havoc, from locust swarms “decimating” crops in Ethiopia to Nepalese villagers fleeing their homes due to “melting glaciers and droughts”.

“That window of time that we have left to act is closing fast. So we must speed up the pace of change,” said Mr Sharma.

“As we move to clean energy systems, we can all benefit from the security provided by domestic renewable energy sources.”

Mr Sharma also called for greater “participation and leadership of women in climate action” to keep temperature rises within safe limits and “protect health, food security, and livelihoods” globally.

“The science is clear. We know what is coming and we know what we need to do,” said Mr Sharma.

“We must address the broad underlying factors and finance and deliver a sustainable, climate resilient future together.”

Other participants included Foreign Minister of Antigua and Barbuda Chet Greene, France’s Minister of the Ecological Transition​ Barbara Pompili and Bahrain's climate envoy Mohammed Mubarak bin Daina.

The UAE’s mission to the UN said in a statement that the meeting would address “climate finance in building and sustaining peace and stability in conflict, crisis and post-conflict situations”.

The UN’s climate change team defines climate finance as public and private fund-raising to fight global warming and help governments adapt to more droughts, floods and other effects of living on a hotter planet.

Envoys met in New York against a backdrop of gloomy forecasts on mankind’s efforts to keep global temperature rise well below the internationally-agreed benchmark of 2°C, compared to pre-industrial times.

The International Energy Agency said on Tuesday that carbon dioxide emissions from the world’s power stations rose to their highest level last year, as economies rebounded from the Covid-19 pandemic and coal use increased.

A study published in the journal Nature Climate Change on Monday said that much of the Amazon rainforest is reaching a climate tipping point, in which large areas will begin to transform into savannah.

The UN’s Intergovernmental Panel on Climate Change last month issued a “dire warning” that global warming was causing widespread damage to natural habitats, lives and livelihoods and some of its impacts may be irreversible.

The UAE, which holds a temporary UN Security Council seat, arranged the meeting as part of its council presidency for the month of March.

Members take turns holding the council’s presidency each month, during which they manage the agenda, preside over meetings and decide on topics for debate.

The UAE, Albania, Brazil, Gabon and Ghana joined the UN council for two-year terms beginning on January 1, meaning they can take part in meetings, vote on resolutions and help draft official statements.

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
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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

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

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Updated: March 09, 2022, 7:59 PM