The year 2020 was one of the three warmest on record for Europe, which had the highest annual levels of greenhouse gases since 2003, a report says.
And the latest five-year average temperatures are the highest ever measured.
Copernicus Climate Change Service has released its annual European State of the Climate report, which contains the latest data to help monitor global warming.
Copernicus is the EU’s Earth observation programme, which considers atmosphere, marine, land, climate change, security and emergency.
The study found that 2020 saw the warmest year, winter, and autumn on record for Europe.
Winter in the continent was more than 3.4°C above average and it was especially warm over north-eastern Europe.
Findings reveal that several episodes of very warm weather occurred in the summer. But the heatwaves were not as intense, widespread, or long-lived as others of recent years.
That said, 2020 had the largest number of sunshine hours in Europe since satellite records began in 1983.
The study showed there was a substantial transition in parts of north-western and north-eastern Europe from a wet winter to a dry spring, which affected river discharge, soil moisture and vegetation growth.
Storm Alex brought record rainfall and led to above-average river discharge across much of western Europe, leading to flooding in some countries.
"The European State of the Climate 2020 report offers a comprehensive analysis of relevant European climate events, considering multiple contributing climate indicators and putting them into perspective, also within the global context," said Carlo Buontempo, director of the service.
“Analysing the interplay of variables like temperature, sea ice, precipitation, river discharge or soil moisture underlines the importance of monitoring all parts of our climate system, to understand changing climate trends, with traceability back to the original data.
“It is more important than ever that we use the available information to act, to mitigate and adapt to climate change and accelerate our efforts to reduce future risks.”
In Arctic Siberia, 2020 was the warmest year on record by a large margin. During the summer, it also had dry conditions and record-breaking bushfire activity.
In March 2020, a particularly strong polar vortex led to record ozone depletion for the Northern Hemisphere.
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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