Nations must not lose hope and focus in tackling global warming despite the many obstacles to international co-operation, the UN climate chief said on Monday at the start of a 10-day meeting in Bonn, Germany.
Patricia Espinosa, whose second term as head of the UN climate office ends this year, spoke in front of diplomats from around the world who will try, during the international gathering, to lay the foundations for this year’s international climate summit in Egypt.
“I appeal to all of you, especially in these difficult and challenging times, not to lose hope, not to lose focus, but to use our united efforts against climate change as the ultimate act of unity between nations,” she said.
Since signing the 2015 Paris climate accord, most countries have stepped up their efforts to reduce greenhouse gases responsible for human-made global warming.
But, collectively, those pledges still fall far short of what is needed to limit global warming to 1.5ºC above pre-industrial levels by the end of the century.
While Ms Espinosa said that “much more” is needed, she noted that the commitments so far were made during a time of international turmoil — from former US president Donald Trump's decision to pull his country out of the Paris accord, later reversed by the Biden administration, to the first years of the coronavirus pandemic.
“We must never give in to despair,” she said, joining a chorus of scientists and policymakers who reject climate doomism. “We must continue to move forward. Look at what we have accomplished in the last six years.”
Many of the key issues delegates will try to resolve in the coming days centre on financial aid to poor countries struggling to cope with the impact of climate change.
Ms Espinosa made it clear that she expected leaders to provide their delegates with the necessary backing to agree upon what she described as a “balanced package” soon.
“We must understand that climate change is moving exponentially. We can no longer afford to make just incremental progress,” she said. “We must move these negotiations along more quickly. The world expects it.”
Representatives of the group of 46 Least Developed Countries demanded that big polluters such as China and the US cut their emissions more strongly and pay for the damage that is already resulting from climate change.
“Countries with much greater responsibility and capabilities than ours must close the funding gap so that when the impacts of climate change hit — when houses and hospitals are washed away, when crops are destroyed, when islands sink and when whole communities are displaced — the costs don’t land on the already vulnerable households,” said the group’s chairperson, Madeleine Diouf Sarr from Senegal.
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Company profile
Name: Back to Games and Boardgame Space
Started: Back to Games (2015); Boardgame Space (Mark Azzam became co-founder in 2017)
Founder: Back to Games (Mr Azzam); Boardgame Space (Mr Azzam and Feras Al Bastaki)
Based: Dubai and Abu Dhabi
Industry: Back to Games (retail); Boardgame Space (wholesale and distribution)
Funding: Back to Games: self-funded by Mr Azzam with Dh1.3 million; Mr Azzam invested Dh250,000 in Boardgame Space
Growth: Back to Games: from 300 products in 2015 to 7,000 in 2019; Boardgame Space: from 34 games in 2017 to 3,500 in 2019
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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.
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