The Paris Climate Agreement explained


Taylor Heyman
  • English
  • Arabic

US President Joe Biden is expected to sign many executive orders to reverse some of Donald Trump’s most controversial policies.

To begin his ground-breaking set of environmental policies, he will move to rejoin the 2015 Paris Climate Agreement.

What you need to know.

What is the Paris Climate Agreement?

Almost every country signed the Paris Agreement – 195 nations and the EU.

It was signed on December 12, 2015, after two weeks of wrangling at the Paris Conference of the Parties to the UN Framework Convention on Climate Change, or Cop21.

It is the first binding multilateral agreement on climate change and came into force in November 2016.

The accord sets a target of limiting warming of the planet to 2ºC above pre-Industrial Revolution levels, while aiming for an even more ambitious goal of 1.5ºC.

What did signatories promise?

Each nation that signed up committed to specific climate goals for their country, called nationally determined contributions.

The UK and Japan committed to net-zero carbon emissions by 2050.

There is also a system for developed countries, by far the worst polluters, to assist developing nations in mitigating the effects of climate change.

A new batch of national goals came into force at the end of 2020 and were supposed to stretch nations even further to cut carbon emissions.

But only 44 countries and the EU met this deadline and many of the contributions or targets stayed the same as in 2015 – some were even reduced.

There is no penalty for leaving the agreement but the US is the only nation to do so.

When did the US leave?

Donald Trump announced his intention to pull the US out of the agreement on June 1, 2017, saying it disadvantaged the US.

“The Paris Climate Accord is simply the latest example of Washington entering into an agreement that disadvantages the United States to the exclusive benefit of other countries, leaving American workers – who I love – and taxpayers to absorb the cost in terms of lost jobs, lower wages, shuttered factories and vastly diminished economic production,” he said at the time.

When the US signed the deal, it committed to cut climate pollution by between 26 per cent and 28 per cent from 2005 levels.

The decision to pull out by the world’s second-largest greenhouse gas emitter behind China was widely criticised.

Shortly after the US dropped out, Syria signed up, making the US the only country in the world that was not a signatory.

What else is Biden planning for the environment?

The journey back to setting an example on climate change is going to be an arduous one after four years of scientists being pilloried and environmental legislation withdrawn.

"We got off track very severely for the last four years with a climate denier in the Oval Office," John Podesta, an adviser to former president Barack Obama who helped to craft the 2015 Paris Agreement, told Reuters.

"We enter the international arena with a credibility deficit."

Nevertheless, Mr Biden and Vice President Kamala Harris have bold plans.

There will be a sweeping order to review all of Mr Trump's actions weakening climate change protection and the revocation of a vital permit for TC Energy's Keystone XL oil pipeline project from Canada.

There will also be a moratorium on oil and gas leasing in the Arctic National Wildlife Refuge, which Mr Trump's administration recently opened to development.

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Kabir Singh

Produced by: Cinestaan Studios, T-Series

Directed by: Sandeep Reddy Vanga

Starring: Shahid Kapoor, Kiara Advani, Suresh Oberoi, Soham Majumdar, Arjun Pahwa

Rating: 2.5/5 

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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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

Group D: Flamengo, ES Tunis, Chelsea, Leon.

Group E: River Plate, Urawa, Monterrey, Inter Milan.

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When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
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The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity

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Itcan profile

Founders: Mansour Althani and Abdullah Althani

Based: Business Bay, with offices in Saudi Arabia, Egypt and India

Sector: Technology, digital marketing and e-commerce

Size: 70 employees 

Revenue: On track to make Dh100 million in revenue this year since its 2015 launch

Funding: Self-funded to date

 

'Cheb%20Khaled'
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THE BIO:

Favourite holiday destination: Thailand. I go every year and I’m obsessed with the fitness camps there.

Favourite book: Born to Run by Christopher McDougall. It’s an amazing story about barefoot running.

Favourite film: A League of their Own. I used to love watching it in my granny’s house when I was seven.

Personal motto: Believe it and you can achieve it.

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