John Kerry, United States special envoy for climate, says Cop26 can still be a success if China's Xi Jinping doesn't attend. AP
John Kerry, United States special envoy for climate, says Cop26 can still be a success if China's Xi Jinping doesn't attend. AP
John Kerry, United States special envoy for climate, says Cop26 can still be a success if China's Xi Jinping doesn't attend. AP
John Kerry, United States special envoy for climate, says Cop26 can still be a success if China's Xi Jinping doesn't attend. AP

John Kerry says Cop26 must be ‘starting line’ in climate fight for decade


Laura O'Callaghan
  • English
  • Arabic

John Kerry has said Cop26 must serve as the “starting line for the rest of the decade” rather than a once-off place for leaders to make climate commitments.

US President Joe Biden’s special envoy on climate change on Monday painted a positive picture of expectations for the United Nations conference in Glasgow, saying some countries are tipped to make “surprising announcements”.

Around 30,000 delegates are expected to descend on Glasgow from October 31 for the two-week conference where world leaders will make pledges to reduce carbon emissions.

Mr Kerry, a former US senator who became secretary of state under Barack Obama when the Paris agreement was signed, said the fight against global warming cannot be side-lined after the Cop26.

“There is not a wall that comes down after Glasgow,” he told The Guardian.

“It is the starting line for the rest of the decade.”

He said while many countries have shown their willingness to step up in the climate fight, some nations are not on track to meet the 1.5C global heating threshold.

Under the 2016 Paris accord, 197 nations are bound to hold global heating to “well below” 2C, with an aspirational 1.5C. But that commitment was found to have fallen short of estimates so countries agreed to review targets every five years.

Staying within the 1.5C threshold would require carbon emissions to fall by 45 percent this decade.

“Glasgow has to show strong commitment to keeping 1.5C in reach, but that does not mean every country will get there,” Mr Kerry added.

“We acknowledge that there will be a gap [between the emissions cuts countries offer and those needed for a 1.5C limit]. The question is, will we have created a critical mass? We are close to that.”

Donald Trump withdrew the US from the Paris treaty which stipulates that signatory nations must update their carbon reduction plans every five years.

Hours after being inaugurated as US president in January, Mr Biden moved to reinstate the country into the deal.

Mr Kerry said enough momentum is gained at Cop26 it could pave the way for every country to eventually meeting the target.

On fossil fuels, he said he is hopeful world leaders will follow America’s lead and commit to phase out coal, petrol and natural gas. It has also vowed to reduce emissions from vehicles.

“The US is heading to a post-2035 future where our power sector will be carbon-free. That is not a small step. I hope that can encourage other countries too, with regard to what they might be trying to achieve.”

Turning to China, the world’s biggest producer of carbon, Mr Kerry said Cop26 could still be a success if President Xi Jinping failed to show up.

He said the Biden administration remains “hopeful” Beijing will honour its commitment to work with Washington to achieve climate goals.

Mr Xi has not left China since the outbreak of Covid and has not said whether he will attend the summit.

World leaders will be joined at the summit by scientists and activists between October 31 and November 12.

Delegates will not need to show proof of vaccination against Covid-19, which is required for all indoor large events in Scotland.

Instead, attendees will be asked to take a daily lateral flow test and show a negative result.

The specs: Fenyr SuperSport

Price, base: Dh5.1 million

Engine: 3.8-litre twin-turbo flat-six

Transmission: Seven-speed automatic

Power: 800hp @ 7,100pm

Torque: 980Nm @ 4,000rpm

Fuel economy, combined: 13.5L / 100km

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RESULTS

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Winner: Recordman, Richard Mullen (jockey), Satish Seemar (trainer)

5.30pm: Wathba Stallions Cup Handicap (PA) Dh 70,000, 2,200m​​​​​​​
Winner: AF Taraha, Tadhg O’Shea, Ernst Oertel

6pm: Abu Dhabi Fillies Classic Prestige (PA) Dh110,000, 1,400m​​​​​​​
Winner: Dhafra, Fabrice Veron, Eric Lemartinel

6.30pm: Abu Dhabi Colts Classic Prestige (PA) Dh110,000, 1,400m​​​​​​​
Winner: Maqam, Fabrice Veron, Eric Lemartinel

7pm: Handicap (PA) Dh85,000, 1,600m​​​​​​​
Winner: AF Momtaz, Fernando Jara, Musabah Al Muhairi

7.30pm: Maiden (PA) Dh80,000, 1,600m​​​​​​​
Winner: Optimizm, Patrick Cosgrave, Abdallah Al Hammadi

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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Updated: November 22, 2021, 9:06 AM