German state secretary Jochen Flasbarth praised the UK’s handling of the Cop26 environmental summit and said the country will look to build on the efforts made in Glasgow during its G7 Presidency.
Mr Flasbarth, Germany’s state secretary at the Federal Ministry for Economic Co-operation and Development, said despite individuals and businesses expressing disappointment at the outcome of Cop26, he came away feeling optimistic for the future.
“I had a very positive perception. I went from Glasgow in a very positive mood; we fixed the rulebook I would say in a quite reasonable way and we started on what is the future of multilateralism of climate risk partnerships,” Mr Flasbarth told delegates attending a virtual seminar hosted by Clean Energy Wire.
“This will also be in the centre of our G7 presidency — to focus on co-operation and implementation to keep the 1.5°C in reach.”
Mr Flasbarth pointed to the Just Energy Transition Partnership with South Africa — a pact between the UK, France, Germany, the EU and the US to help South Africa phase out coal — as an example of the type of deals it wants to focus on during its presidency.
“That is why it is so relevant to not just have a climate partnership, but a climate and development partnership, to organise it in a way that fits to the overall economic and societal development of those countries,” he said.
“It has to be multidimensional, it has to be done in a just transition manner and that is what we want to roll out with more partners.”
Other countries Germany is looking to tie up with include Pakistan, with Mr Flasbarth heading to the nation next month, while pacts with Rwanda, Serbia, Indonesia and India are also on the agenda.
“We all remember that India, together with China had some difficulties in the final session in Glasgow with the language of [the deal],” said Mr Flasbarth, referring to how the Cop26 deal was watered down in the final moments of the two-week summit after last-minute objections from India and China over a commitment to end the use of coal.
While 190 countries reached consensus on how to enforce the 2015 Paris climate agreement, a push led by China, and backed by India, resulted in the language being changed from accelerating the “phase out” of unabated coal to “phase down".
Mr Flasbarth said he “made an offer” to India in the aftermath of that decision to seek out a similar partnership to the pact with South Africa.
Indonesia is also a priority, he said, because the south-east Asian nation is hosting the G20 Presidency this year, which Mr Flasbarth said needs attention in the global drive to hit climate change targets.
“Looking at the G20, this is the problem,” he said. “If you do not get emissions in G20 down fast, then it's very unlikely to meet the target.”
This is why Germany is targeting countries in the G20 to form a proposed carbon club — a group working to reach agreements on uniform standards of emissions and CO2 pricing to accelerate the implementation of the Paris Climate Agreement.
The carbon-club concept was unveiled by German Chancellor Olaf Scholz when he laid out the G7 programme earlier this month, as Germany takes over the presidency from the UK, with the country initially wanting to develop the G7 into a “climate club".
“We want to ensure that each country does not go it alone but joins forces,” Mr Scholz said at the time of the launch.
However Mr Flasbarth said the climate club idea was not yet fully developed, which is why the entire G20 is now being considered along with “some more relevant partners we have in mind for climate alliances or clubs”.
Mr Scholz first proposed the idea of the EU creating a “climate club” last year as a mechanism to avoid trade friction linked to green tariffs.
A planned EU carbon border adjustment mechanism as part of its Green Deal agenda has already stoked criticism around the world with clear differences of opinion on the best strategy evident within the EU as well.
While French President Emmanuel Macron has led the charge for the rapid implementation of a CBAM, essentially a tax on imported products made in countries with less stringent rules on reducing carbon pollution, China and the US are both opposed to a tax.
The objective is to avoid shifting Europe's carbon emissions overseas as they are reduced at home — known as “carbon leakage”, with the sectors affected including steel, aluminium, cement, fertiliser and electricity.
Even within Europe, Germany insists the mechanism can only be implemented gradually, and several countries are outright opposed, including Spain, Portugal, Poland and Austria — mainly because the tax would replace the allocation of free emissions permits.
“I know that we might need it in Europe, looking at our ambitious targets and the policies behind it, but I never liked it, to be honest,” said Mr Flasbarth, who was Germany's state secretary at the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety before taking on his current role seven weeks ago.
“And now in my new position, I like it even less, because of course, it can be misunderstood as producing entry barriers to our markets. And that would make the implementation of global climate policy with our partners even more difficult.
“So we are seeking ways on how to get policy approaches with relevant, and other economically competing countries, to allow that we do not use this kind of mechanism.”
Looking ahead to Cop28 in the UAE in 2023, Mr Flasbarth said he spoke to the UAE delegation at Cop26 in Glasgow to find out what their objectives were.
“They very much want to focus on the technological side of climate change — also, specifically on solar and wind,” he said.
For now, he added, the focus will be on Cop27 at Sharm El Sheikh in Egypt this year, however the threat of war between Russia and Ukraine poses a challenge for the G7 presidency.
“Each and every conflict we have, as a word doesn't make it easier to focus on the other agendas,” Mr Flasbarth added.
Alden Meyer, a strategic adviser on domestic and international climate policy and politics and a Principal at Performance Partners, said there was no doubt the focus on climate change would diminish in the event of war with Russia, as it did during the peak of the Covid-19 crisis when government and central banks shifted focus to propping up their economies.
“I don't think there's any doubt of that,” Mr Meyer said.
“If Putin does invade Ukraine, especially if he does a major incursion and tries to occupy Ukraine, that will be the overriding priority of the G7 as it probably should be in the short term.
“But we have to avoid a reaction that says to deal with what will be the inevitable gas supply implications and price shocks in such a scenario that the answer is to dial back efforts to decarbonise and shift away from fossil fuels towards clean energy resources. That's counterproductive.”
TOP%2010%20MOST%20POLLUTED%20CITIES
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How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
Mica
Director: Ismael Ferroukhi
Stars: Zakaria Inan, Sabrina Ouazani
3 stars
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
Learn more about Qasr Al Hosn
In 2013, The National's History Project went beyond the walls to see what life was like living in Abu Dhabi's fabled fort:
Results
Stage three:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-43
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Tom Dumoulin (NED) Jumbo-Visma, at 14s
4. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
5. Joao Almeida (POR) UAE-Team Emirates, at 22s
6. Mikkel Bjerg (DEN) UAE-Team Emirates, at 24s
General Classification:
1. Stefan Bissegger (SUI) EF Education-EasyPost, in 9-13-02
2. Filippo Ganna (ITA) Ineos Grenadiers, at 7s
3. Jasper Philipsen (BEL) Alpecin Fenix, at 12s
4. Tom Dumoulin (NED) Jumbo-Visma, at 14s
5. Tadej Pogacar (SLO) UAE-Team Emirates, at 18s
6. Joao Almeida (POR) UAE-Team Emirates, at 22s
How to donate
Send “thenational” to the following numbers or call the hotline on: 0502955999
2289 – Dh10
2252 – Dh 50
6025 – Dh20
6027 – Dh 100
6026 – Dh 200
Sholto Byrnes on Myanmar politics
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg
Muslim Council of Elders condemns terrorism on religious sites
The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.
It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.
“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.
The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.
Company%C2%A0profile
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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
The%20specs
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The specs
Engine: 5.0-litre supercharged V8
Transmission: Eight-speed auto
Power: 575bhp
Torque: 700Nm
Price: Dh554,000
On sale: now
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
Company%C2%A0profile
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KINGDOM%20OF%20THE%20PLANET%20OF%20THE%20APES
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Most match wins on clay
Guillermo Vilas - 659
Manuel Orantes - 501
Thomas Muster - 422
Rafael Nadal - 399 *
Jose Higueras - 378
Eddie Dibbs - 370
Ilie Nastase - 338
Carlos Moya - 337
Ivan Lendl - 329
Andres Gomez - 322
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.