Countries that signed the Paris Agreement are expected to set out plans to meet the deal’s targets of limiting global warming. Reuters
Countries that signed the Paris Agreement are expected to set out plans to meet the deal’s targets of limiting global warming. Reuters
Countries that signed the Paris Agreement are expected to set out plans to meet the deal’s targets of limiting global warming. Reuters
Countries that signed the Paris Agreement are expected to set out plans to meet the deal’s targets of limiting global warming. Reuters

UN: Progress on Cop26 climate plans ‘far from satisfactory’


Tim Stickings
  • English
  • Arabic

Preparations for Cop26 are far from satisfactory, with four in 10 countries missing a deadline to reveal how they plan to cut emissions, the UN’s climate chief said.

With the UN summit only three months away, the end of July was the cut-off for nations to submit their detailed strategies.

They must strive to meet the Paris Agreement’s goal of limiting global warming to no more than 2°C of that in pre-industrial times.

But of its 191 signatories, only 110 have submitted their plans.

“It is still far from satisfactory, since only a little over half the parties have met the cut-off deadline,” said Patricia Espinosa, the executive secretary of the UN Framework Convention on Climate Change.

“I call on those countries that were unable to meet this deadline to redouble their efforts and honour their commitment under the Paris Agreement.”

The ambition of the 110 plans that were submitted in time “also needs to be enhanced”, Ms Espinosa said.

The actions promised in early submissions would fail to meet the 2°C goal, let alone the preferred target of 1.5°C, she said.

“I truly hope that the revised estimate of collective efforts will reveal a more positive picture,” she said.

The US submitted its plans in April after President Joe Biden rejoined the agreement, which his predecessor Donald Trump had sought to abandon.

The blueprint signed off by Mr Biden calls for emissions to be reduced by 2030 to half their level in 2005.

China and India are among the major polluters that have yet to submit their plans, officially known as nationally determined contributions.

‘Fault lines remain’

The Paris Agreement set December 31, 2020 as the deadline by which to submit new climate plans. But owing to the Covid-19 pandemic, this was moved to July 31 of this year.

A recent G20 summit was hampered by disagreements over cutting emissions and ended with India writing its dissent into the final communique.

Wealthy countries have been criticised for failing to provide enough support to poorer nations and for continuing to subsidise fossil fuels.

US climate envoy John Kerry said last month that action at Cop26 must go further than the Paris Agreement.

Alok Sharma, the UK government minister overseeing Cop26, said countries needed to bridge divides ahead of the November summit.

“Fault lines remain on some critical issues, and there is more work to do,” he said after the G20 talks.

As the host of Cop26, Britain is gathering pledges from cities and businesses to reduce their net emissions to zero by 2050.

The UK’s own plan, submitted last December, envisages a two-thirds cut in emissions by the end of this decade compared with 1990 levels.

Britain plans to end the sale of new petrol and diesel cars by 2030 and support the shift towards electric vehicles.

NBA Finals results

Game 1: Warriors 124, Cavaliers 114
Game 2: Warriors 122, Cavaliers 103
Game 3: Cavaliers 102, Warriors 110
Game 4: In Cleveland, Sunday (Monday morning UAE)

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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.”

Cultural fiesta

What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421,  Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day. 

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Updated: August 02, 2021, 10:12 AM