Norway’s attorney-general Fredrik Sejersted (L) before the start of a trial where the Norwegian government was being sued by climate activists. AFP.
Norway’s attorney-general Fredrik Sejersted (L) before the start of a trial where the Norwegian government was being sued by climate activists. AFP.
Norway’s attorney-general Fredrik Sejersted (L) before the start of a trial where the Norwegian government was being sued by climate activists. AFP.
Norway’s attorney-general Fredrik Sejersted (L) before the start of a trial where the Norwegian government was being sued by climate activists. AFP.

Norway's top court dismisses Greenpeace challenge over oil exploration


Neil Murphy
  • English
  • Arabic

Norway's Supreme Court on Tuesday struck down a challenge from environmental groups trying to stop oil exploration in the Arctic after a battle over the country's climate change commitments.
By a vote of 11 to four, the court rejected the argument of two organisations, Greenpeace and Young Friends of the Earth Norway, which claimed that the granting of 10 oil exploration licences in the Barents Sea in 2016 was unconstitutional.

Referring to the Paris Agreement, which seeks to limit global warming to less than 2°C above pre-industrial levels, the environmental groups argued that the oil licences were a breach of article 112 of Norway's constitution, designed to guarantee citizens the right to a healthy environment.
The claims – twice previously rejected – and their hopes were finally dashed by the Supreme Court, which delivered the verdict by videoconference.
The majority of the court agreed that article 112 could be invoked if the state failed to meet its climate and environmental obligations – but it was not found applicable in this case.
The court also held that the granting of oil permits was not contrary to the European Convention on Human Rights, in part because they did not represent "a real and immediate risk" to life and physical integrity.
"We are outraged with this judgment, which leaves youth and future generations without constitutional protection," said Therese Hugstmyr Woie, head of Young Friends of the Earth Norway. "The Supreme Court chooses loyalty to Norwegian oil over our rights to a liveable future."
Before the Supreme Court ruling, Greenpeace had considered taking the case to the European Court of Human Rights in Strasbourg.
The group described the case as historical and one that could influence the future oil policy of Norway, western Europe's biggest producer of hydrocarbons.

Cases involving climate change are increasingly going before the courts. In the Netherlands in 2019, the state was ordered to reduce its greenhouse gas emissions by at least 25 per cent before 2020, after a case was brought to the country's highest court by environmental group Urgenda.

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GOLF’S RAHMBO

- 5 wins in 22 months as pro
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Score

Third Test, Day 2

New Zealand 274
Pakistan 139-3 (61 ov)

Pakistan trail by 135 runs with 7 wickets remaining in the innings

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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”

Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5