UK Prime Minister Boris Johnson said he was "immensely proud" of Cop26's achievements, but conceded his joy was “tinged with disappointment” after some countries failed to meet the level of ambition demanded by those most threatened by climate change.
Alok Sharma, the president of the Glasgow summit, had earlier said China and India will have to “justify” themselves to climate-vulnerable countries after pressure by the two nations watered down language on coal in the final Cop26 text.
Vulnerable countries, including small island nations, voiced their displeasure at the last-minute change to the wording from “phase out” to “phase down” of coal power, the largest source of greenhouse gas emissions.
Mr Johnson hailed the “truly historic” outcome of the Cop26 summit, describing the agreement as “game-changing”.
But he hastened to indicate that the result did not give him complete satisfaction.
“Of course, my delight at this progress is tinged with disappointment. Those for whom climate change is already a matter of life and death, who can only stand by as their islands are submerged, their farm land turned to desert, their homes battered by storms, they demanded a high level of ambition from this summit," he said.
“While many of us were willing to go there, that wasn’t true of everybody. Sadly that’s the nature of diplomacy," Mr Johnson said, without referring to a particular country.
“We can lobby, we can cajole, we can encourage, but we cannot force sovereign nations to do what they do not wish to do. It’s ultimately their decision to make and they must stand by it."
Cop26 was billed as the last best chance to keep in reach the goal of limiting temperature rises to 1.5°C to avoid the worst impacts of climate extremes.
Nearly 200 countries on Saturday signed a global deal to clamp down on warming after two weeks of negotiations but fell short of what scientists say is needed to contain dangerous rises.
Mr Sharma, the president of the UN climate summit in Glasgow, did however note the inclusion of coal in the deal for the first time.
But of course, this is just a start. We now need to deliver on the commitments
Alok Sharna
“I should point out that for the very first time in any of these conferences, the word 'coal' is actually reflected in the text – that again is a first. Yes, of course, I would have liked to ensure that we maintain the 'phase out' and rather than changing the wording to 'phase down.' But, you know, on the way to phasing out, you've got to phase down,” he told Sky News.
“But ultimately, of course, what we need to ensure is that we continue to work on this deal, on the commitments. And on the issue of coal, China and India, of course, are going to have to justify to some of the most climate-vulnerable countries what happened. You heard that disappointment on the floor.”
Mr Sharma said the Glasgow deal was a historic agreement that “we can be really, really proud of".
“But of course, this is just a start. We now need to deliver on the commitments.”
Patricia Espinosa, executive secretary of the UN Framework Convention on Climate Change, said the target was “definitely alive” after the Glasgow summit.
“We are very far from that goal but we did manage to get together this big package of different decisions that will allow us and gives us very, very specific direction on what we need to work on in order to get there,” she said.
The difference between 1.5°C and 2.4°C of temperature increase, which the Climate Action Tracker forecasts the current pledges would result in, is “the survival of millions and millions of people and species”.
“I would like to underline that the huge step forward in our negotiations was the fact that for the first time in this context we mentioned coal and fossil fuels.
The final decisions came after two weeks of negotiations which began with 120 world leaders attending the summit.
Cop26 Environment Ministers - in pictures
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Courtesy: Crystal Intelligence
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
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.”
Abu Dhabi racecard
5pm: Maiden (Purebred Arabians); Dh80,000; 1,400m.
5.30pm: Maiden (PA); Dh80,00; 1,400m.
6pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (PA); Group 3; Dh500,000; 1,600m.
6.30pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (Thoroughbred); Listed; Dh380,000; 1,600m
7pm: Wathba Stallions Cup for Private Owners Handicap (PA); Dh70,000; 1,400m.
7.30pm: Handicap (PA); Dh80,000; 1,600m