Talks at the Glasgow climate summit have little time left to deliver progress that would accelerate carbon emission reductions, as the Cop26 president asked countries overnight to revisit their bottom line promises.
With fears negotiations are stalled on the issue of how quickly countries can deliver promises to reduce green house gases and meet a mid-century net zero goal, Alok Sharma, Cop president, sent a stark warning in a draft political decision.
Boris Johnson, the UK prime minister, is travelling to Glasgow on Wednesday, hours after the release of the draft political decision to be negotiated over the next few days.
The first draft of the "COP cover decision" asks countries to "revisit and strengthen the 2030 targets in their nationally determined contributions, as necessary to align with the Paris Agreement temperature goal by the end of 2022."
The draft also reminds countries that under the Paris Agreement they can submit new, more ambitious climate pledges at any time and for the first time calls for countries to phase out coal and fossil fuel subsidies.
The text send messages on particular areas in which new offers are wanted, including the issue of financing for countries vulnerable to climate change. The presidency "notes with serious concern that the current provision of climate finance for adaptation is insufficient to respond to worsening climate change impacts in developing country Parties [and] urges developed country Parties to urgently scale-up their provision of climate finance for adaptation so as to respond to the needs of developing country Parties".
The draft is closely watched for what it might commit countries to do to bridge the gap between their current climate targets and the more ambitious action scientists say is needed to avert disastrous levels of warming.
Flurry of meetings to formalise Cop26 final text
Diplomats from the nearly 200 countries represented at Cop26 have intensified backroom negotiations in the plasterboard meeting rooms at the venue in the hope of completing a final text they are all willing to sign when the summit ends this weekend.
Poorer, climate-vulnerable countries have called for countries to cap warming at 1.5C, which is a temperature increase scientists believe is just short of calamitous.
The push for more regular reviews of climate plans is seen as necessary because countries' current 2030 pledges would lead to 2.4C of warming. "We still have a mountain to climb over the next few days, and what has been collectively committed to goes some way, but certainly not all the way, to keeping 1.5 within reach," Mr Sharma said.
The draft, which the UN released just before 06.00 GMT about six hours later than expected, also calls on countries to "accelerate the phasing-out of coal and subsidies for fossil fuels," a demand of climate change campaigners and "urges" developed countries to "urgently scale-up" financial support for developing countries to respond to their needs to adapt to the impacts of climate change.
Boris to the rescue?
Mr Johnson is travelling to Glasgow by train and will meet with Antonio Guterres, the UN Secretary general, at the summit venue. The British leader sent a plea for countries to "pull out all the stops" for a deal.
"There’s still much to do," he said. "Today I’ll be meeting with ministers and negotiators to hear about where progress has been made and where the gaps must be bridged.
"This is bigger than any one country and it is time for nations to put aside differences and come together for our planet and our people.
"We need to pull out all the stops if we’re going to keep 1.5C within our grasp."
Cop26 day 10 - in pictures
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Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
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UAE currency: the story behind the money in your pockets
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Global state-owned investor ranking by size
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United States
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UAE
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Japan
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Norway
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Canada
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Singapore
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What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
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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.”
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