Europe’s space sector needs more investment to fulfil its potential in the fight against climate change, industry figures have said.
Data from the EU’s flagship Galileo and Copernicus satellites are being used to detect changing climate conditions and navigate energy-saving routes.
But the European space sector lacks the towering presence of the US and China’s vastly better-funded programmes.
EU leaders have used the Cop26 summit in Glasgow to promote their plans to make Europe the world’s first climate-neutral continent.
However, they have failed to put space policy at the heart of their climate and digitalisation plans, said Steve Spengler, head of a group of satellite operators called ESOA.
Mr Spengler said Europe needed to ensure it did not become “only a customer” of cutting-edge space technology developed by others.
“Europe needs to do more to support the space economy,” he told an online space forum on Monday.
“Against the backdrop of Cop26, we need to recognise the role of satellite communications in the protection of the environment and global climate change. Space data is key to observing how quickly the environment is changing and the threats that poses to humanity.”
Rodrigo da Costa, executive director of the EU Agency for the Space Programme, said the cosmos was central to achieving Europe’s objectives.
“Space is impacting our economy and society across a broad spectrum of areas, from aviation and agriculture to maritime and logistics, from your smartphone to your car to your bank account,” he said.
“Space is a key enabler of the European Green Deal, a Europe fit for the digital age and the safety and security of our citizens.”
Copernicus, a satellite observation programme, is credited with providing data on global temperatures, sea ice, land use and the marine environment.
Its sister project, Galileo, a satellite navigation system, can plot energy-efficient routes that reduce greenhouse gas emissions and air pollution.
But Josef Aschbacher, head of the European Space Agency, said Europe needs a bigger commercial space sector in addition to these publicly funded projects.
Short-range expeditions by billionaires such as Jeff Bezos and Richard Branson were widely seen as heralding a new age of privately funded space travel.
“Europe must be more proactive and responsive and quicker on the market,” said Mr Aschbacher.
“It is of paramount importance that Europe benefits from a vibrant commercial space sector to serve its own societal and economic needs and priorities.”
Andre-Hubert Roussel, leader of industry lobby Eurospace, said Europe’s space sector was not playing on a level field with its competitors.
He said the space budget in Europe was only a seventh of that of the US and described the sector as receiving “very limited and fragmented public support”.
“We Europeans have ideas. We must turn them into budgets,” said Mr Roussel. “Preparing the next generation of space capability will require, and requires, massive investment.”
As well as more money, EU leaders need to put regulations in place to ensure space does not become overcrowded, Mr Spengler said.
He bemoaned the fact that the EU’s plans for a Digital Decade leading up to 2030 did not have space policy at their core.
“The need for sophisticated controls to ensure a safe space environment has become clear. To avoid disaster and preserve space services, we urgently need governments to act,” he said.
“Europe can play a leading role by establishing norms it expects industry to adhere to and by fostering the collection and sharing of data from around the world.”
Evi Papantoniou, a space adviser to the European Commission, said the sector could help to drive the EU’s economic recovery from Covid-19.
She said Brussels wanted Europe’s satellite data to be used as much as possible in sectors such as agriculture and tourism.
“The importance of the space sector for EU security and our daily lives cannot be overstated,” she said.
“Space innovation is a must to ensure that Europe can stay in the global race and compete internationally.”
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EEjari%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%2C%20Saudi%20Arabia%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EYazeed%20Al%20Shamsi%2C%20Fahad%20Albedah%2C%20Mohammed%20Alkhelewy%20and%20Khalid%20Almunif%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EPropTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%241%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3ESanabil%20500%20Mena%2C%20Hambro%20Perks'%20Oryx%20Fund%20and%20angel%20investors%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E8%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Floward%0D%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%2C%20Saudi%20Arabia%0D%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EAbdulaziz%20Al%20Loughani%20and%20Mohamed%20Al%20Arifi%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EE-commerce%0D%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3EAbout%20%24200%20million%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EAljazira%20Capital%2C%20Rainwater%20Partners%2C%20STV%20and%20Impact46%0D%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E1%2C200%3C%2Fp%3E%0A
Imperial%20Island%3A%20A%20History%20of%20Empire%20in%20Modern%20Britain
%3Cp%3EAuthor%3A%20Charlotte%20Lydia%20Riley%3Cbr%3EPublisher%3A%20Bodley%20Head%3Cbr%3EPages%3A%20384%3C%2Fp%3E%0A
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.”