UK Prime Minister Boris Johnson has made an urgent appeal to world leaders before the Cop26 environmental summit, saying the world is facing a “critical moment” from which it might not recover.
He was speaking in Rome, Italy, where the G20, a body that makes up of the world’s 20 largest economies and accounts for more than 80 per cent of global carbon emissions, is meeting.
“If we don't act now it will be too late,” the prime minister's official spokesman said.
The Cop26 has been hit with some big-name refusals to attend, including world’s biggest polluter China, Russia — number 4 on the list — and Brazil, home to at-risk rainforests.
Mr Johnson is taking a tough message to the G20 that, as they have done the most to cause global warming, they now have to make themselves accountable and help those nations now experiencing the most severe consequences.
“Cop26 needs to mark the beginning of the end of climate change,” the spokesman said.
“The next few days are a critical moment for world leaders to demonstrate that they can show the climate ambition needed.
“The success of Cop26 still hangs in the balance. Too many countries are doing too little.
“As the countries with the greatest historic and modern contributions to global warming who have built their economies on the backs of burning fossil fuels, G20 offers the key to unlocking global action and making progress we so badly need to live up to our commitments.”
The spokesman added that while G20 nations are overwhelmingly responsible for the problem, poorer nations are reaping the consequences.
“Climate-vulnerable countries are increasingly experiencing flooding, wildfires, heatwaves and the prospect of their economies being devastated due to climate change.
“On Monday, G20 leaders will come face to face with leaders from those countries at Cop26 and will have to account for their actions.”
He said that while more countries were now coming forward with commitments to reach net-zero emissions, more needed to be done if they want to meet the goal set in the Paris Agreement of limiting global temperature increases to 1.5°C.
Mr Johnson's spokesman said it was still important to keep making progress, insisting the UK was leading by example with the publication this month of the world's first comprehensive net-zero strategy.
He added that if they were to succeed in reaching global net zero by the middle of the century, it would mean they would need to halve emissions by the end of the decade.
“What success looks like is ensuring that we have commitments sufficient to keep 1.5 alive,” the spokesman said.
“We need actual hard commitments from all countries if this going to be a success.
“This is an important moment to use this gathering of world leaders as we come to the final days before Cop to look them in the eye and make sure we are getting the level of action that is required.”
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Mohammed bin Zayed Majlis
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
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Fashion director: Sarah Maisey
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Models: Meti and Clinton at MMG
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Social media: Fatima Al Mahmoud
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