United Nations Secretary General Antonio Guterres says more must be done to tackle climate change. AFP
United Nations Secretary General Antonio Guterres says more must be done to tackle climate change. AFP
United Nations Secretary General Antonio Guterres says more must be done to tackle climate change. AFP
United Nations Secretary General Antonio Guterres says more must be done to tackle climate change. AFP

Cop26: UN chief demands greater global effort as 'climate crisis closes in'


Neil Murphy
  • English
  • Arabic

UN Secretary General Antonio Guterres called on nations to increase efforts to tackle climate change before the Cop26 summit in Glasgow this year.

Mr Guterres told the UN that the world was way off the targets outlined in the Paris Agreement, which seek to keep the change in global temperatures to less than 1.5°C above pre-industrial levels.

He also called for coal to be phased out in developed nations by 2030.

Signatories to the Paris Agreement must now present clear and credible plans to achieve net-zero emissions as “words are not enough”.

“This year, the drive to net zero must become the new normal for everyone everywhere, for every country as well as the key sectors such as aviation, shipping industry and agriculture,” Mr Guterres said.

“At the same time, all commitments to net zero must be underpinned by clear and credible plans to achieve them.”

The Cop26 summit is set to be held in Glasgow, Scotland in November.

But Mr Guterres said the usual schedule of meetings would be likely to take place online because of the coronavirus pandemic.

“I cannot overestimate the importance of the negotiations in the months ahead,” he said.

“We simply cannot allow the pandemic to keep us from working together on the crucial pathway to Glasgow.

"Although there will be challenges, we must adapt. The stakes are too high to do otherwise. Everyone must be ready to make compromises.”

Alok Sharma, Britain’s Business Secretary and chairman of the Cop26 summit, was also at the Road to Glasgow online meeting.

Mr Sharma demanded greater leadership from international heads of state.

“Last year saw record temperatures, we saw fires raging across the world, we saw storms intensifying," he said.

"In short, our friends, that climate crisis is closing in. This year cannot simply be a repeat of the last.

Alok Sharma is president of November's Cop26 key climate change talks. AFP
Alok Sharma is president of November's Cop26 key climate change talks. AFP

“We all know what is at stake if we do not work now to secure the right outcomes at Glasgow.

"Let me remind you we have 266 days to go to Cop26. Please let's work together, let's make sure that every one of those days counts.”

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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