President of Cop26 Alok Sharma has hinted he could resign if the next UK prime minister does not stick to carbon pledges. EPA.
President of Cop26 Alok Sharma has hinted he could resign if the next UK prime minister does not stick to carbon pledges. EPA.
President of Cop26 Alok Sharma has hinted he could resign if the next UK prime minister does not stick to carbon pledges. EPA.
President of Cop26 Alok Sharma has hinted he could resign if the next UK prime minister does not stick to carbon pledges. EPA.

Alok Sharma hints he could quit if new UK PM is ‘weak’ on net zero agenda


Neil Murphy
  • English
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The British cabinet minister who led last year’s landmark UN climate change summit in Glasgow has indicated he could resign if the next prime minister is not fully committed to the net zero agenda.

Cop26 president Alok Sharma said that while it was “absolutely a leadership issue”, some of the remaining candidates in the Tory leadership race had been only “lukewarm”.

In an interview with The Observer, he urged them to “proactively” set out their support for the net zero agenda and “green” growth.

“Anyone aspiring to lead our country needs to demonstrate that they take this issue incredibly seriously, that they’re willing to continue to lead and take up the mantle that Boris Johnson started off,” he said.

Asked if he could resign if candidates were weak on net zero, Mr Sharma said: “Let’s see, shall we? I think we need to see where the candidates are. And we need to see who actually ends up in No 10.

“I hope every candidate realises why this is so important for voters generally and why it’s important for Conservative supporters. And I hope that we will see, particularly with the final two, a very clear statement that this is an agenda that they do support.”

Pressed a second time, he added: “I don’t rule anything out and I don’t rule anything in.”

Of the five remaining candidates in the contest, only Kemi Badenoch has said she does not support the UK target of getting to net zero emissions by 2050, describing it as “unilateral economic disarmament”.

The others have indicated varying degrees of enthusiasm for the policy, which is unpopular with some sections of the party amid concerns about the impact on the economy.

On Friday, Foreign Secretary Liz Truss said she would impose a temporary moratorium on the green levy on domestic energy bills, arguing there were better ways to achieve the net zero target.

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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Company Profile
Company name: OneOrder

Started: October 2021

Founders: Tamer Amer and Karim Maurice

Based: Cairo, Egypt

Industry: technology, logistics

Investors: A15 and self-funded 

Updated: July 17, 2022, 1:09 AM