UN chief Antonio Guterres tells Davos climate fight 'going up in smoke' due to inaction

The world is facing a litany of challenges that are “piling up like cars in a chain-reaction crash”, UN Secretary General Antonio Guterres told the World Economic Forum in Davos.

In a rousing speech at the Swiss ski resort on Wednesday, he painted a bleak outlook for the world, which he said was “looking into the eye of a category 5 hurricane.”

The urgency of the fight against climate change, apart from the lack of action by governments and companies, is among the most concerning of issues at hand, he said.

The world’s lack of preparation for future pandemics, the war in Ukraine, geopolitical tension and the cost-of-living crisis are also contributing to what is a distressing concoction, the UN chief said.

Mr Guterres, 73, suggested that apathy among world leaders meant that the target of limiting global warming to 1.5ºC above pre-industrial levels appears to be “nearly going up in smoke”.

He said the world was heading towards a 2.8ºC increase in warming, the consequences of which would be “devastating”.

UN Secretary General Antonio Guterres speaks to delegates at the World Economic Forum in Davos. EPA

The 1.5ºC target was established in the 2015 Paris Climate Agreement, an accord that aims to “limit global warming to well below 2ºC, preferably to 1.5ºC degrees above pre-industrial levels.

Greenhouse gas emissions are at record levels and while companies are increasingly pledging to cut their pollution to as close as possible to zero, the benchmarks and criteria they use “are often dubious or murky”, Mr Guterres said.

“It leaves the door wide open to greenwashing,” he said, referring to unsubstantiated claims by some firms that their products are not harmful to the environment.

He urged business leaders in Davos to follow the principles outlined by the UN and the International Organisation for Standardisation to make “credible”, accountable net-zero pledges.

The guidelines were launched in November to become a reference text and help companies to come up with solid plans and avoid slogans, hype and obfuscation.

Mr Guterres urged the participants to “put forward credible and transparent transition plans on how to achieve net zero — and submit those plans before the end of this year”.

“The transition to net-zero must be grounded in real emissions cuts — and not rely on carbon credits and shadow markets,” he said.

And in a stark warning to decision makers, he said: “We are flirting with climate disaster. Every week brings a new climate horror story.

“The climate threat coming to a point of no return. There is lack of urgency among governments.”

Mr Guterres said “we have to confess that the battle is being lost” as he called on governments and the private sector to step up efforts in the fight against climate change.

He said the climate crisis and other challenges facing the world formed the “worst situation of my lifetime”.

On geopolitical divisions, he said there was a climate of mistrust among key players on the world stage.

He mentioned the West-East divide between the US and China as having far-reaching effects, while the North-South divide between rich and poor nations continued to grow bigger.

Mr Guterres urged the G20 to put forward a new plan to help developing countries on their paths to economic stability.

The “outlook is bleak” in terms of how the global economic crisis is affecting nations, and said women and girls stand to suffer the most, the UN chief said.

On health, he said Covid-19 was “still straining economies” and said it was regrettable that countries were failing to prepare for future pandemics because they had not learnt any lessons.

“We are nowhere near ready for the pandemics to come,” he said.

Global challenges are all interlinked, he said, and are “piling up like cars in a chain-reaction crash”.

“I am no here to sugar coat the scale of that challenge,” he said, adding that he was also not bemoaning “the sorry state of our world”.

“There are no perfect solutions in a perfect storm but we can work to control damage and to seize the opportunities available.”

World Economic Forum in Davos — in pictures

Smart words at Make Smart Cool

Make Smart Cool is not your usual festival. Dubbed “edutainment” by organisers Najahi Events, Make Smart Cool aims to inspire its youthful target audience through a mix of interactive presentation by social media influencers and a concert finale featuring Example with DJ Wire. Here are some of the speakers sharing their inspiration and experiences on the night.
Prince Ea
With his social media videos accumulating more half a billion views, the American motivational speaker is hot on the college circuit in the US, with talks that focus on the many ways to generate passion and motivation when it comes to learning.
Khalid Al Ameri
The Emirati columnist and presenter is much loved by local youth, with writings and presentations about education, entrepreneurship and family balance. His lectures on career and personal development are sought after by the education and business sector.
Ben Ouattara
Born to an Ivorian father and German mother, the Dubai-based fitness instructor and motivational speaker is all about conquering fears and insecurities. His talk focuses on the need to gain emotional and physical fitness when facing life’s challenges. As well managing his film production company, Ouattara is one of the official ambassadors of Dubai Expo2020.

ETFs explained

Exhchange traded funds are bought and sold like shares, but operate as index-tracking funds, passively following their chosen indices, such as the S&P 500, FTSE 100 and the FTSE All World, plus a vast range of smaller exchanges and commodities, such as gold, silver, copper sugar, coffee and oil.

ETFs have zero upfront fees and annual charges as low as 0.07 per cent a year, which means you get to keep more of your returns, as actively managed funds can charge as much as 1.5 per cent a year.

There are thousands to choose from, with the five biggest providers BlackRock’s iShares range, Vanguard, State Street Global Advisors SPDR ETFs, Deutsche Bank AWM X-trackers and Invesco PowerShares.

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

Credit Score explained

What is a credit score?

In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.

Why is it important?

Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.

How is it calculated?

The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.

How can I improve my score?

By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.

How do I know if my score is low or high?

By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.

How much does it cost?

A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.

While you're here

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FIGHT%20CARD

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The specs

Engine: 2.0-litre 4-cyl turbo

Power: 247hp at 6,500rpm

Torque: 370Nm from 1,500-3,500rpm

Transmission: 10-speed auto

Fuel consumption: 7.8L/100km

Price: from Dh94,900

On sale: now

Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills

Profile box

Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)