Former UK prime minister Boris Johnson returned to the limelight on Monday with a speech at the Cop27 summit in Egypt, saying he opposed the idea of reparations from historic polluters such as Britain.
It came as current Prime Minister Rishi Sunak pushed the door open to paying countries affected by climate damage.
The debate over compensation, or “loss and damage” in UN jargon, is likely to be one of the most sensitive subjects at Cop27.
Developing countries say losses estimated at more than $500 billion should be covered by the rich countries who caused global warming.
A minister in Mr Sunak’s government said on Monday that Britain was “supportive of discussions” on the issue.
But Mr Johnson, speaking to an audience at a side event in Sharm El Sheikh, said: “I think that whole concept is tough. Who devises the reparations?
“Let’s look to the future — that’s what I think we should be doing. I’d much rather look at what we can do to help countries go forward now.”
Mr Johnson said there was no question that Britain, the birthplace of the Industrial Revolution, had “put an awful lot of carbon into the atmosphere”.
“What we cannot do, I’m afraid, is make up for that with some kind of reparations. We simply don’t have the financial resources, and no country could,” he said.
“What we can do is help with the technology that I think will fix the problem, and help to build these partnerships.”
At the side event hosted by The New York Times, Mr Johnson would not be drawn into criticising Mr Sunak for his initial reluctance to attend Cop27.
“The PM’s here; I’m glad he’s here,” he said of Mr Sunak, whose resignation as chancellor of the exchequer in July was a key moment in Mr Johnson’s downfall.
But he took issue with some Conservative Party figures who have called Britain’s net zero targets into question because of the current energy crisis.
In a direct rebuke of his former adviser David Frost, who described wind power as medieval technology, he said: “I pointed out that burning oil is positively palaeolithic.”
Mr Johnson said he himself was in Sharm El Sheikh to champion the legacy of the Cop26 summit, held in Britain when Mr Johnson was in office.
Cop27 takes place in the shadow of the war in Ukraine and a quest in Europe to replace Russian gas, which has sometimes involved turning to fossil fuels.
“People have started to say we all went too far and too fast and that we’ve been naive and utopian in our rush to move beyond hydrocarbons, that we’ve inflicted needless energy costs on our populations,” Mr Johnson said.
“I believe that here at Sharm is a moment when we really have to tackle this nonsense head-on.”
World leaders at Cop27 - in pictures
Mr Sunak is expected on Monday to announce a trebling of UK funding for adaptation, the UN term for preventing damage from global warming.
But the loss and damage debate — covering impacts that it is too late to prevent — will also be part of the Cop27 agenda, in an initial victory for developing countries.
African countries in particular are lobbying for compensation to address disasters that it is too late to prevent.
Rich countries have historically been wary of opening themselves up to what could be eye-watering liability claims.
But the UK’s Business Secretary Grant Shapps, speaking for Mr Sunak’s government on morning television, said Britain was open to negotiations.
“We industrialised first and we appreciate the rest of the world needs to be able to bring themselves along as well,” he said.
“There is a big international discussion going on; that’s one of the things happening at Cop27 in Egypt and we’re supportive of discussions going on.”
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
The five pillars of Islam
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Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
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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