Glasgow hopes for green revival despite troubled Cop26 build-up


Tim Stickings
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Glasgow is traditionally known as the “Dear Green Place”, a label which admirers see as fitting for a city with big green ambitions, and which is about to become synonymous with tackling climate change.

But sceptics say rodents and overflowing bins will make Scotland’s biggest city a laughing stock when delegates from 196 countries gather there to save the planet.

Glasgow will be under the spotlight for nearly two weeks starting on Sunday, when Cop26 finally arrives after more than two years of preparations.

About 30,000 people are expected to descend on the city, raising concerns about an explosion of coronavirus cases. But for Glasgow’s businesses, it is a welcome boost in trade after months of lockdown.

Police officers walk by the Scottish Event Campus in Glasgow where Cop26 is being held. PA
Police officers walk by the Scottish Event Campus in Glasgow where Cop26 is being held. PA

“For a city the size of Glasgow to be holding an event the size of Cop, that is a real step forward for Glasgow,” said Stuart Patrick, the chief executive of the city’s Chamber of Commerce.

“It comes at a good time, particularly for the hoteliers of the city that are obviously getting visitor numbers that we haven’t seen for some months.”

More broadly, Mr Patrick said, the summit is a chance to sell Glasgow to leaders and investors who would otherwise rarely stop by the city.

“We are able to introduce ourselves as a city to literally thousands of decision-makers that previously would never have been here,” he said. “That’s got to be good news for us.

“I won’t deny that the weather’s never going to be at its best in November. Nonetheless, we’re obviously hopeful that enough folk will get a sense, a flavour of Glasgow and will want to come back as leisure visitors.”

The dignitaries in Glasgow will include US President Joe Biden, UK Prime Minister Boris Johnson and a host of other leaders who are under pressure to take decisive action on climate change.

Scientists say time is running out to limit global warming to 1.5°C above pre-industrial levels – the goal of the 2016 Paris Agreement – and predict that the consequences will be catastrophic if this is not achieved.

Britain's key goals for Glasgow include curbing carbon emissions, especially by phasing out coal power, and diverting money to developing countries to help them adapt.

Rich countries such as the UK are expected to lead the way in tackling climate change, having done the most to cause it over the centuries, Mr Johnson told G20 leaders on the eve of the summit.

“The next few days are a critical moment for world leaders to demonstrate that they can show the climate ambition needed,” his spokesman said.

Political spat

Glasgow’s leaders say the city is enjoying a green renaissance and turning a page on post-industrial poverty that has scarred parts of the city since the end of its shipbuilding heyday.

A “greenprint” of planned investments in Glasgow includes a clean fashion industry hub, a revamped transit network and planting 18 million trees planted in the area.

The UK government, which chose Glasgow as the Cop26 venue in 2019, said it was the “ideal location to showcase the diverse culture and world-leading innovation that the UK has to offer”.

The conference was due in 2020 but postponed by a year because of the pandemic.

City council leader Susan Aitken, speaking at a preview event this week, said there were opportunities for Glaswegians in the construction sector as homes are redesigned to conserve energy.

The 2014 Commonwealth Games in Glasgow were credited with turning old industrial land into an eco-friendly housing development with energy-efficient homes.

“When Glasgow got Cop26 … we wanted to show that we knew what action looks like and what that would entail,” Ms Aitken said.

Ms Aitken, like the devolved Scottish government in Edinburgh, is from the Scottish National Party. But the summit is being organised by the Conservative government in London, a political rival.

This has contributed to a sometimes-fractious build-up. Scotland’s First Minister Nicola Sturgeon this week attacked what she said was an inexplicable decision by UK ministers not to fund a Scottish carbon capture project.

In the other direction, Conservative MPs in London took aim at Ms Aitken over what they described as the tatty state of Glasgow ahead of Cop26.

The city is “ready, with caveats”, Ms Aitken told MPs when she appeared before the London Parliament's Scottish affairs committee.

Stories of bin collectors being tormented by rodents were overblown, said Ms Aitken.

In any case, “all cities have rats”, she added.

Cleaning staff have put in 12,000 hours of overtime in the lead up to Cop26, with 150 extra bins installed around the city.

But many workers are poised to go on strike during the summit. They will be cheered on by Greta Thunberg, the Swedish activist who has invited them to join her protesting on the sidelines.

Glasgow council workers and school support staff are set to take up her invitation, although railway staff reached a last-minute deal to prevent a strike.

Activists from Ocean Rebellion pour fake oil in front of the Cop26 venue in Glasgow ahead of the start of the climate summit. AFP
Activists from Ocean Rebellion pour fake oil in front of the Cop26 venue in Glasgow ahead of the start of the climate summit. AFP

Engineering heritage

The summit is being held at the Scottish Event Campus, an exhibition centre complex in central Glasgow that includes a 14,300-seater stadium.

It drew criticism when it emerged that two of the SEC venues received the second-worst grade in an energy efficiency assessment.

A methane leak from a pipeline near one of the venues, spewing out a greenhouse gas responsible for about 30 per cent of global warming, was a further blow to Glasgow’s image.

But the host city hopes to use the summit to showcase the green innovation which it hopes will be a path to prosperity for Glasgow.

Mr Patrick said Glasgow’s record as an engineering city left it well placed to face the challenges of going green.

The world’s first known wind turbine was built in the 1880s by James Blyth, a scientist at what became the University of Strathclyde. Today, Britain’s largest wind farm lies a short distance outside Glasgow.

Near Glasgow Airport a Scottish manufacturing institute is working with US aviation giant Boeing on how to make aircraft lighter to reduce their carbon footprint.

“There are a whole host of examples of where Glasgow’s engineering heritage is still in full play,” said Mr Patrick.

“In the long run, the city should see benefits that come from all those challenges being laid out by Cop26. We’ve got enough capability in the city to respond to that.”

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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A new relationship with the old country

Treaty of Friendship between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates

The United kingdom of Great Britain and Northern Ireland and the United Arab Emirates; Considering that the United Arab Emirates has assumed full responsibility as a sovereign and independent State; Determined that the long-standing and traditional relations of close friendship and cooperation between their peoples shall continue; Desiring to give expression to this intention in the form of a Treaty Friendship; Have agreed as follows:

ARTICLE 1 The relations between the United Kingdom of Great Britain and Northern Ireland and the United Arab Emirates shall be governed by a spirit of close friendship. In recognition of this, the Contracting Parties, conscious of their common interest in the peace and stability of the region, shall: (a) consult together on matters of mutual concern in time of need; (b) settle all their disputes by peaceful means in conformity with the provisions of the Charter of the United Nations.

ARTICLE 2 The Contracting Parties shall encourage education, scientific and cultural cooperation between the two States in accordance with arrangements to be agreed. Such arrangements shall cover among other things: (a) the promotion of mutual understanding of their respective cultures, civilisations and languages, the promotion of contacts among professional bodies, universities and cultural institutions; (c) the encouragement of technical, scientific and cultural exchanges.

ARTICLE 3 The Contracting Parties shall maintain the close relationship already existing between them in the field of trade and commerce. Representatives of the Contracting Parties shall meet from time to time to consider means by which such relations can be further developed and strengthened, including the possibility of concluding treaties or agreements on matters of mutual concern.

ARTICLE 4 This Treaty shall enter into force on today’s date and shall remain in force for a period of ten years. Unless twelve months before the expiry of the said period of ten years either Contracting Party shall have given notice to the other of its intention to terminate the Treaty, this Treaty shall remain in force thereafter until the expiry of twelve months from the date on which notice of such intention is given.

IN WITNESS WHEREOF the undersigned have signed this Treaty.

DONE in duplicate at Dubai the second day of December 1971AD, corresponding to the fifteenth day of Shawwal 1391H, in the English and Arabic languages, both texts being equally authoritative.

Signed

Geoffrey Arthur  Sheikh Zayed

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Specs

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Power: 659hp
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Updated: October 31, 2021, 8:00 AM