The physical projects built and employed in the fight against climate change should be showcased at Cop28 in November, the head of the World Energy Council, Angela Wilkinson, told The National.
Positive achievements rather than verbal promises should get centre stage, she said.
The first global stocktake by the UN aimed at assessing the collective progress of the Paris Agreement in limiting world temperature rise to 1.5 degrees is predicted to show missed targets when it is unveiled as part of Cop 28 in Dubai in November.
Dr Wilkinson believes disappointment arising from the global stocktake can be mitigated by emphasising the very real progress that's being made towards decarbonisation and the energy transition.
She also views Cop28 as an opportunity for fewer discussions about what could or should happen in the struggle against rising global temperatures and more showcasing of the action that's currently being taken in countries around the world.
“The bad news is we’re off-track,” said Dr Wilkinson. “The question is ‘how do you sweeten a bitter pill?’
“You do that by trying to show that there’s more action available than you think. And I think that should be less about people coming and promising what they’re going to do and (more about) showcasing what’s really going on.
“Let’s showcase all the action. Let’s connect it to the talk-talk at the top. There’s lots of walk-walk from the bottom up and sideways on going on.
“Let’s showcase the fact that we’re not all starting from zero and we’re not painting on a blank canvas.
“There’s a lot of potential.”
Even though the climate targets will likely be overshot by 2030, Dr Wilkinson says that's no reason to bring about an immediate and complete end to the use of fossil fuels but warned that energy transition can only be achieved collaboratively.
“A hundred years ago, it was all about the specification – you could design and engineers would deliver it. Now we’ve got engineers, financiers, activists, householders and consumers all in the mix, and it’s very hard to know whose perspective is the best. In fact, there’s none.
“So, it’s the world’s biggest, complex co-ordination challenge, but we’re still organised on the basis of 19th century problems and mindsets.
'Not fit for purpose'
Dr Wilkinson added that the world's current energy system is not fit for purpose, because it doesn't deliver what it's supposed to and does deliver what it shouldn't.
“The majority of the world’s population lacks sufficient access to reliable, clean and affordable energy resources and the energy system itself is producing a by-product which is actually creating a whole host of other problems, the climate change emergency being one of those, which is not good for the future of humanity,” she told The National.
“If we had a fit-for-purpose system, it wouldn’t be doing either of those things.”
Experts have outlined many different pathways to the energy transition, each involving a mix that suits the specific needs and capabilities of the countries or regions involved, from solar to fusion and from wind power to sustainable fuels and small-scale nuclear reactors.
“These days we have this word – transition,” Dr Wilkinson told The National.
“This word transition is often interpreted by people to mean one thing that’s unique and that’s never happened before and a specific destination. It’s not – transition is the evolutionary process of humanity over time.
“We’re in the middle of an unprecedented challenge, which is ‘how do we do a global energy transition which provides enough energy to 10 billion people without destroying the planet?’
"You can’t solve that by saying ‘I know the answer, everybody follow me’. There’s no silver or green bullet solution and we live in a multipolar geopolitical world.
“This all requires a different way of coming together at the table; it requires a different way of working on problems together and defining them.”
More from Rashmee Roshan Lall
The bio
Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.
Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.
Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.
Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.
MATCH INFO
Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai
UAE currency: the story behind the money in your pockets
UAE%20v%20West%20Indies
%3Cp%3EFirst%20ODI%20-%20Sunday%2C%20June%204%20%0D%3Cbr%3ESecond%20ODI%20-%20Tuesday%2C%20June%206%20%0D%3Cbr%3EThird%20ODI%20-%20Friday%2C%20June%209%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3EMatches%20at%20Sharjah%20Cricket%20Stadium.%20All%20games%20start%20at%204.30pm%0D%3Cbr%3E%0D%3Cbr%3E%3Cstrong%3EUAE%20squad%3C%2Fstrong%3E%0D%3Cbr%3EMuhammad%20Waseem%20(captain)%2C%20Aayan%20Khan%2C%20Adithya%20Shetty%2C%20Ali%20Naseer%2C%20Ansh%20Tandon%2C%20Aryansh%20Sharma%2C%20Asif%20Khan%2C%20Basil%20Hameed%2C%20Ethan%20D%E2%80%99Souza%2C%20Fahad%20Nawaz%2C%20Jonathan%20Figy%2C%20Junaid%20Siddique%2C%20Karthik%20Meiyappan%2C%20Lovepreet%20Singh%2C%20Matiullah%2C%20Mohammed%20Faraazuddin%2C%20Muhammad%20Jawadullah%2C%20Rameez%20Shahzad%2C%20Rohan%20Mustafa%2C%20Sanchit%20Sharma%2C%20Vriitya%20Aravind%2C%20Zahoor%20Khan%0D%3C%2Fp%3E%0A
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.”
UAE currency: the story behind the money in your pockets
THE%20SPECS
%3Cp%3EEngine%3A%203-litre%20V6%20turbo%20(standard%20model%2C%20E-hybrid)%3B%204-litre%20V8%20biturbo%20(S)%0D%3Cbr%3EPower%3A%20350hp%20(standard)%3B%20463hp%20(E-hybrid)%3B%20467hp%20(S)%0D%3Cbr%3ETorque%3A%20500Nm%20(standard)%3B%20650Nm%20(E-hybrid)%3B%20600Nm%20(S)%0D%0D%3Cbr%3EPrice%3A%20From%20Dh368%2C500%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
