A coal-fired power plant in Poland, which accounts for nearly all of the EU's hard coal production. Bloomberg
A coal-fired power plant in Poland, which accounts for nearly all of the EU's hard coal production. Bloomberg
A coal-fired power plant in Poland, which accounts for nearly all of the EU's hard coal production. Bloomberg
A coal-fired power plant in Poland, which accounts for nearly all of the EU's hard coal production. Bloomberg

EU's coal use drops by a third in clean energy shift


Tim Stickings
  • English
  • Arabic

The EU’s coal consumption has dropped by a third in two years in a boost to Europe’s clean energy drive.

The sharp decline began before the pandemic as countries shifted to cleaner energy.

Coal power plants are among the top polluters in Europe, and EU leaders agreed at June’s G7 summit to speed up efforts to phase out the fuel.

But with some members still reliant on fossil fuels, tensions over coal are regarded as an obstacle to the EU’s plans for a sweeping green overhaul.

Brussels faces resistance from industry-heavy countries in Eastern Europe that fear the plans will affect jobs and increase energy costs.

Poland accounts for 96 per cent of hard coal production in the EU and nearly half of all consumption. The Czech Republic is the only other producer.

But as countries moved to cleaner energy, consumption of hard coal across the bloc fell by 35 per cent between 2018 and 2020.

Germany is the biggest consumer of brown coal, also known as lignite, a softer fuel that is mainly used to produce electricity.

Brown coal is regarded as damaging to the environment because it is mined in open-air pits and used in relatively inefficient power plants.

Mirroring the decline in hard coal use, consumption of brown coal across the EU dropped by 33 per cent from 2018 to 2020.

Eurostat, the EU agency that published the figures, said the decline in coal use had accelerated from 2019 onwards – before the onset of Covid-19.

It said this was because countries had shifted to natural gas and renewable energy sources, and cut their production of coke, a substance used to make iron and steel.

The figures showed EU coal consumption is nearly two thirds lower than in 1990, the year used as a benchmark for the bloc’s emissions targets.

The accelerating decline in coal use began before the pandemic as countries shifted to cleaner energy. AP
The accelerating decline in coal use began before the pandemic as countries shifted to cleaner energy. AP

In a June report, the European Environment Agency said most of the EU had reduced coal use but faster cuts were needed at large power plants.

“Achieving the goals set by the European Green Deal will imply a much faster abandoning of fossil fuels,” it said.

Pressure to phase out coal is growing after a report by a UN panel this week said the world had a narrow window to stave off climate catastrophe.

UK Prime Minister Boris Johnson said countries should use the Cop26 summit in November to “consign coal to history”.

G7 leaders promised in June to end new government funding for coal power by the end of the year.

But tensions over coal led to disagreement at a recent G20 climate summit where countries failed to reach a deal on phasing out the fuel.

Britain’s Cop26 chief Alok Sharma described the failure as disappointing and said abandoning coal was necessary to reach global climate targets.

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

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The biog

Alwyn Stephen says much of his success is a result of taking an educated chance on business decisions.

His advice to anyone starting out in business is to have no fear as life is about taking on challenges.

“If you have the ambition and dream of something, follow that dream, be positive, determined and set goals.

"Nothing and no-one can stop you from succeeding with the right work application, and a little bit of luck along the way.”

Mr Stephen sells his luxury fragrances at selected perfumeries around the UAE, including the House of Niche Boutique in Al Seef.

He relaxes by spending time with his family at home, and enjoying his wife’s India cooking. 

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Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL

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HOW TO WATCH

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GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

UAE currency: the story behind the money in your pockets
Where to buy art books in the UAE

There are a number of speciality art bookshops in the UAE.

In Dubai, The Lighthouse at Dubai Design District has a wonderfully curated selection of art and design books. Alserkal Avenue runs a pop-up shop at their A4 space, and host the art-book fair Fully Booked during Art Week in March. The Third Line, also in Alserkal Avenue, has a strong book-publishing arm and sells copies at its gallery. Kinokuniya, at Dubai Mall, has some good offerings within its broad selection, and you never know what you will find at the House of Prose in Jumeirah. Finally, all of Gulf Photo Plus’s photo books are available for sale at their show. 

In Abu Dhabi, Louvre Abu Dhabi has a beautiful selection of catalogues and art books, and Magrudy’s – across the Emirates, but particularly at their NYU Abu Dhabi site – has a great selection in art, fiction and cultural theory.

In Sharjah, the Sharjah Art Museum sells catalogues and art books at its museum shop, and the Sharjah Art Foundation has a bookshop that offers reads on art, theory and cultural history.

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UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan

Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh

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UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
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  • Critically assess whether a project’s promises or returns seem too good to be true.
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  • Store funds in hardware wallets as opposed to online exchanges.
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if you go

The flights

Direct flights from the UAE to the Nepalese capital, Kathmandu, are available with Air Arabia, (www.airarabia.com) Fly Dubai (www.flydubai.com) or Etihad (www.etihad.com) from Dh1,200 return including taxes. The trek described here started from Jomson, but there are many other start and end point variations depending on how you tailor your trek. To get to Jomson from Kathmandu you must first fly to the lake-side resort town of Pokhara with either Buddha Air (www.buddhaair.com) or Yeti Airlines (www.yetiairlines.com). Both charge around US$240 (Dh880) return. From Pokhara there are early morning flights to Jomson with Yeti Airlines or Simrik Airlines (www.simrikairlines.com) for around US$220 (Dh800) return. 

The trek

Restricted area permits (US$500 per person) are required for trekking in the Upper Mustang area. The challenging Meso Kanto pass between Tilcho Lake and Jomson should not be attempted by those without a lot of mountain experience and a good support team. An excellent trekking company with good knowledge of Upper Mustang, the Annaurpuna Circuit and Tilcho Lake area and who can help organise a version of the trek described here is the Nepal-UK run Snow Cat Travel (www.snowcattravel.com). Prices vary widely depending on accommodation types and the level of assistance required. 

Updated: August 11, 2021, 12:55 PM