A climate change watchdog says the UK's 'position as a global leader on climate' has come under renewed scrutiny. PA
A climate change watchdog says the UK's 'position as a global leader on climate' has come under renewed scrutiny. PA
A climate change watchdog says the UK's 'position as a global leader on climate' has come under renewed scrutiny. PA
A climate change watchdog says the UK's 'position as a global leader on climate' has come under renewed scrutiny. PA

UK’s climate watchdog says net-zero target would be derailed by Sunak's policy shift


Neil Murphy
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Prime Minister Rishi Sunak's recent policy changes could derail the UK's net-zero plans and threaten its position as a leader on climate change, an independent watchdog said.

Mr Sunak announced last month that a ban on the sale of new petrol and diesel cars would be delayed from 2030 to 2035, in a move that angered many climate campaigners.

He also lowered the proportion of households that will be required to replace their gas boilers with a low-carbon alternative. And he scrapped a plan to make landlords improve the energy efficiency of their properties.

The Commission on Climate Change, the government's own watchdog, said the policy shift would have a negative impact on household finances and would make it more difficult to reach the UK's stated target of zero emissions by 2050.

"We remain concerned about the likelihood of achieving the UK's future targets, especially the substantial policy gap to the UK's 2030 goal," said Piers Forster, a professor of climate physics and the commission's chair.

"Around a fifth of the required emissions reductions to 2030 are covered by plans that we assess as insufficient," he added.

"Recent policy announcements were not accompanied by estimates of their effect on future emissions, nor evidence to back the government's assurance that the UK's targets will still be met."

Mr Forster urged Mr Sunak's government to adopt "greater transparency in updating its analysis at the time of major announcements".

He also urged the government to "restate strong British leadership on climate change" in the period leading up to Cop28.

“Our position as a global leader on climate has come under renewed scrutiny following the Prime Minister’s speech", he said.

In its analysis of Mr Sunak's announcements, the commission warned that renters would have to pay more for energy in their less efficient houses. Drivers who move to electric cars later rather than sooner will face higher costs through their vehicle's lifetime, it added.

UK emissions are supposed to fall by 68 per cent compared with 1990 levels by the end of the decade.

The 2030 target is seen as a critical step towards becoming net-zero by 2050 and stopping global temperatures climbing by more than 1.5 degrees Celsius above pre-industrial levels.

The Commission welcomed announcements on a deal to electrify steel production at the Port Talbot plant in Wales and the Zero Emission Vehicle mandate specifying that only 20 per cent of vehicles produced between 2030 and 2035 will be able to burn petrol or diesel at all.

A government representative said it was confident of reaching the net zero target and that it was taking a fairer and more pragmatic approach to reaching the goal that would save households money.

"The UK remains a global leader on climate – cutting emissions faster than any other G7 country – so we are confident that we will meet our future carbon commitments," the representative said.

Abu Dhabi traffic facts

Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road

The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.

Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.

The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.

The highest levels of traffic were found on Sunday, November 10.

Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019

 

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.”

Friday's schedule in Madrid

Men's quarter-finals

Novak Djokivic (1) v Marin Cilic (9) from 2pm UAE time

Roger Federer (4) v Dominic Thiem (5) from 7pm

Stefanos Tsitsipas (8) v Alexander Zverev (3) from 9.30pm

Stan Wawrinka v Rafael Nadal (2) from 11.30pm

Women's semi-finals

Belinda Bencic v Simona Halep (3) from 4.30pm

Sloane Stephens (8) v Kiki Bertens (7) from 10pm

How to get exposure to gold

Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.

A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.

Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.

Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.

London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long

However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.

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Number of tracks: 11

Rating: 4/5

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4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
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The biog

Favourite films: Casablanca and Lawrence of Arabia

Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins

Favourite dish: Grilled fish

Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

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Director: Goran Hugo Olsson

Rating: 5/5

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Updated: October 13, 2023, 12:27 PM