Climate activist Vanessa Nakate attends a meeting at the Cop26 UN Climate Summit in Glasgow, Scotland. Photo: AP
Climate activist Vanessa Nakate attends a meeting at the Cop26 UN Climate Summit in Glasgow, Scotland. Photo: AP
Climate activist Vanessa Nakate attends a meeting at the Cop26 UN Climate Summit in Glasgow, Scotland. Photo: AP
Climate activist Vanessa Nakate attends a meeting at the Cop26 UN Climate Summit in Glasgow, Scotland. Photo: AP

'Prove us wrong': Sceptical youth plead for Cop26 goals to be met


Tim Stickings
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The rich world heard an emotional plea from young climate activists to “prove us wrong” by turning pledges at Cop26 into real action to save the planet.

With two weeks of talks nearing their end, attention is turning to whether the promises made in Glasgow will really lead to forests being saved, money flowing into climate action and coal power being consigned to history.

While negotiators have expressed hope that the pledges could limit global warming to below 2°C, the head of the UN spoke of a “deep and real credibility gap” and announced a plan to monitor progress.

Vanessa Nakate, a campaigner from Uganda, went further by telling delegates she did not believe some of the promises made at Cop26.

She said a pledge to unleash $130 trillion of financial firepower on the climate crisis was undermined by the rich world’s failure to meet a decade-old promise of $100 billion in annual funding for developing countries.

“We don’t believe you. We don’t believe that banks will suddenly put trillions of dollars on the table for climate action when rich countries have struggled to find $100bn,” Ms Nakate said.

“We don’t believe that promises made by financial companies to end deforestation will actually prevent trees from being cut down.

“I am here to beg you to prove us wrong.”

Ms Nakate was applauded by delegates after telling the summit that pledges alone would not stop global warming.

“Only immediate and drastic action will pull us back from the abyss,” she said.

“I hope you can understand why many of the activists who are here in Glasgow, and millions of activists who could not be here, do not see the success that is being applauded.”

Talks in Glasgow will continue into Friday as negotiators agree a final text, with host country Britain welcoming a series of pledges but critics such as Ms Nakate casting doubt on progress in Glasgow.

Even the most optimistic estimates do not suggest that the Paris Agreement’s goal of capping global warming at 1.5°C would be met under current plans.

The talks were given a lift by a rare agreement between the US and China to increase co-operation on tackling

change.

But many young campaigners are unhappy about how little they have been at the table during the 12-day summit.

“Those who are happy with the current pace of progress clearly won’t see their lives threatened by the climate breakdown. But we will,” said Saher Rashid Baig, 24, an activist from Pakistan.

“How many more Cops will we have where the decisions do not include our young people, children and future generations?”.

Kelo Uchendu, an activist from Nigeria, spoke about the injustice of young people inheriting a planet damaged by the greenhouse gas emissions of previous generations.

“Climate change threatens their access to health, good-quality air, food and quality education. This is the height of injustice,” he said.

Mary Robinson, a former president of Ireland and UN commissioner for human rights, said young people should be more prominent in official delegations.

“I do think, at this stage, that every delegation should include at least one, hopefully even more than one, young person with the delegate badge,” she said.

“Then they get into the room. I do think we need more young people, because we’ve heard you, you have the ideas, you have the passion, you have the understanding.”

The penultimate day of talks was dedicated to the role of cities and regions, which will play a key role in implementing the Glasgow pledges.

The UK pledged £27.5 million ($36.8m) of funding for the an Urban Climate Action Programme to support cities targeting net zero emissions.

“In cities, we’re doers,” said London Mayor Sadiq Khan. He touted policies to tackle air pollution in the UK capital.

Summit president Alok Sharma welcomed the involvement of private companies in setting ambitious targets at Cop26.

But the UN is responding to scepticism of these pledges by appointing experts who will set criteria for keeping track of progress.

“We have a critical mass of global commitments to net zero, from both governments and non-state actors,” said UN chief Antonio Guterres.

"We must now zoom in on the quality and implementation of plans — on measuring and analysing, on reporting, transparency and accountability.”

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Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das 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.”

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Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.

The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers. 

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Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

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Updated: November 14, 2021, 4:37 AM