Delegates at UN climate talks in Dubai agree to ‘transition away’ from planet-warming fossil fuels

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COP28 President Sultan Al-Jaber gaveled approval of the central document without asking for comments, within minutes of opening Wednesday’ session. (AFP)
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Discussions during the 14 days of talks in Dubai revolved around how far to go and whether to make a historic call to wind down oil, gas and coal, the main culprits in the planet’s rapid warming. (Reuters)
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Updated 13 December 2023
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Delegates at UN climate talks in Dubai agree to ‘transition away’ from planet-warming fossil fuels

  • COP28 President Sultan Al-Jaber: ‘We have language on fossil fuel in our final agreement for the first time ever’

DUBAI: United Nations climate negotiators directed the world on Wednesday to transition away from planet-warming fossil fuels in a move the talks chief called historic, despite critics’ worries about loopholes.

Within minutes of opening Wednesday’s session, COP28 President Sultan Al-Jaber gaveled approval of the central document — the global stocktake that says how off-track the world is on climate and how it will get back on track — without asking for comments. Delegates stood and hugged each other.

“It is a plan that is led by the science,’’ Al-Jaber said. “It is an enhanced, balanced, but make no mistake, a historic package to accelerate climate action. It is the UAE consensus.”

“We have language on fossil fuel in our final agreement for the first time ever,” said Al-Jaber, who’s also CEO of the UAE’s oil company.

United Nations Climate Secretary Simon Stiell told delegates their efforts were “needed to signal a hard stop to humanity’s core climate problem: fossil fuels and that planet-burning pollution. Whilst we didn’t turn the page on the fossil fuel era in Dubai, this outcome is the beginning of the end.”

 

 

Stiell cautioned people that what they adopted was a “climate action lifeline, not a finish line.”

The new deal had been floated early Wednesday and was stronger than a draft proposed days earlier, but had loopholes that upset critics. Analysts and delegates wondered if there was going to be a floor fight over details, but Al-Jaber acted quickly, not giving critics a chance to even clear their throats.

Several minutes later, Samoa’s lead delegate Anne Rasmussen, on behalf of small island nations, complained that they weren’t even in the room when Al-Jaber said the deal was done. She said that “the course correction that is needed has not been secured,” with the deal representing business-as-usual instead of exponential emissions-cutting efforts. She said the deal could “potentially take us backward rather than forward.”

When Rasmussen finished, delegates whooped, applauded and stood, as Al-Jaber frowned and then eventually joined the standing ovation that stretched longer than his plaudits. Marshall Islands delegates hugged and cried.

The European Union’s delegation, which stood with small island nations in fighting for stronger language to rid the world of fossil fuels, instead celebrated the agreement as historic.

“I am in awe of the spirit of cooperation that has brought everybody together,” United States Special Envoy John Kerry said. He said it shows that multilateralism can still work despite what the globe sees with wars in Ukraine and the Middle East. “This document sends very strong messages to the world.”

 

 

The deal also includes a call for tripling the use of renewable energy and doubling energy efficiency. Earlier in the talks, the conference adopted a special fund for poor nations hurt by climate change and nations put nearly $800 million in the fund.

“Many, many people here would have liked clearer language” on getting rid of fossil fuels, Kerry said. But he said it’s a compromise.

United Nations Secretary-General Antonio Guterres said in a statement that “for the first time, the outcome recognizes the need to transition away from fossil fuels.”

“The era of fossil fuels must end – and it must end with justice and equity,” he said.

The deal doesn’t go so far as to seek a “phase-out” of fossil fuels, which more than 100 nations, like small island states and European nations, had pleaded for. Instead, it calls for “transitioning away from fossil fuels in energy systems, in a just, orderly and equitable manner, accelerating action in this critical decade.”

The deal says that the transition would be done in a way that gets the world to net zero greenhouse gas emissions in 2050 and follows the dictates of climate science. It projects a world peaking its ever-growing carbon pollution by the year 2025 to reach its agreed-upon threshold, but gives wiggle room to individual nations like China to peak later.

Intensive sessions with all sorts of delegates went well into the small hours of Wednesday morning after the conference presidency’s initial document angered many countries by avoiding decisive calls for action on curbing warming. Then, the United Arab Emirates-led presidency presented delegates from nearly 200 nations a new central document — called the global stocktake — just after sunrise.

It was the third version presented in about two weeks and the word “oil” does not appear anywhere in the 21-page document, but “fossil fuels” appears twice.

“This is the first time in 28 years that countries are forced to deal with fossil fuels,” Center for Biological Diversity energy justice director Jean Su said. “So that is a general win. But the actual details in this are severely flawed.”

“The problem with the text is that it still includes cavernous loopholes that allow the United States and other fossil fuel producing countries to keep going on their expansion of fossil fuels,” Su said. “There’s a pretty deadly, fatal flaw in the text, which allows for transitional fuels to continue” which is a code word for natural gas that also emits carbon pollution.


SFD, AfDB sign deal to finance development initiatives in Africa 

Updated 21 min 46 sec ago
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SFD, AfDB sign deal to finance development initiatives in Africa 

RIYADH: Developing African countries are poised to receive a funding boost for growth initiatives following a deal with the Saudi Fund for Development, aiming to foster sustainable progress. 

The memorandum of understanding, signed with the African Development Bank Group, aims to promote mutual objectives and activities for sustainable international development between the two parties, the Saudi Press Agency reported. 

This initiative aligns with SFD’s objective to enhance both social and economic growth by creating diverse opportunities.  

Moreover, the newly signed agreement aims to facilitate the exchange of knowledge and experiences while advocating for optimal co-financing strategies. It will also support the attainment of sustainable development goals and optimize the impact of these initiatives. 

Additionally, the MoU also aims to enhance collaboration in pursuit of shared goals that promote the expansion of crucial opportunities in diverse beneficiary African nations, ultimately contributing to global prosperity for the most impoverished and least developed communities. 


Saudi Central Bank and BIS co-host meeting on reserve management in Riyadh

Updated 29 min 12 sec ago
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Saudi Central Bank and BIS co-host meeting on reserve management in Riyadh

RIYADH: The evolving global landscape presents new challenges and opportunities for central bank reserve managers, the governor of Saudi Arabia’s apex financial institution explained at a high-level meeting.

Speaking at an event in Riyadh which was attended by the Bank for International Settlements, Ayman Al-Sayari set out his view on the complexities of the current macro-financial environment.

The two-day gathering, which began on April 28, brought together reserve managers and experts from central banks in the Middle East and North Africa region, as well as participants from other apex financial institutions, to discuss the latest trends in managing foreign exchange reserves. 

The event served as a platform for participants to exchange insights, perspectives and expertise on the most critical aspects of reserve management through a series of panel discussions and keynote speeches.

In March, SAMA’s monthly statistics bulletin revealed that foreign assets of Saudi Arabia’s commercial banks surged by 22 percent in February, reaching a total of SR347.63 billion ($92.7 billion) compared to the same month of the previous year.

This rise reflects a significant expansion in the commercial institutions’ international holdings and investments. 

The central bank added that its net foreign assets reached SR1.55 trillion in February. 

Central banks’ foreign holdings are primarily for reserve management and monetary policy purposes, while commercial banks’ foreign assets are for business operations, customer services, and investment activities.

The report added that Saudi Arabia’s total reserve holdings amounted to SR1.62 trillion, representing a five percent decline compared to the same month of 2023.


DIFC records $2.6bn in gross written premiums, highest figure in its 20-year history 

Updated 49 min 51 sec ago
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DIFC records $2.6bn in gross written premiums, highest figure in its 20-year history 

RIYADH: Dubai International Financial Centre recorded its highest gross written premiums in its 20-year history, amounting to $2.6 billion in 2023, marking a 23 percent increase from the previous year. 

DIFC, a global financial center in the Middle East, Africa, and South Asia region, connects the fast-growing markets of the region with global economies and offers dining, retail, and living amenities, according to its website. 

The center also recorded a 20 percent increase in the registration of insurance and reinsurance firms, including the first move of a Guernsey-based captive. 

The Emirates News Agency reported that DIFC “has consolidated its position as the principal hub for the (re)insurance industry,” adding  that DIFC’s appeal for managing general agents, representing 43 percent of new registrations, is a major factor shaping its insurance landscape.

This is credited to the center’s well-established regulatory framework, facilitating partnerships with cedants and brokers. 

The influx of global insurers, reinsurers, and brokers, as well as captives, MGAs, and other industry stakeholders into DIFC, is driven by several factors. These include buoyant oil prices and increased infrastructure spending, as well as a focus on sustainable projects and low insurance penetration in the region. 

Among the notable entities to join DIFC’s insurance sector in the past year are Alif Limited, Arc Insurance and Reinsurance Limited, and Barents Risk Management Limited. Joining them are BharatRe Global Ltd. and many more, it added. 

Arif Amiri, CEO of DIFC Authority, emphasized the center’s role as a global industry hub, hosting over 120 registered insurers, reinsurers, captives, MGAs, and related entities. 

The significance of DIFC’s stature in the insurance domain is further underscored by its co-hosting of the Dubai World Insurance Congress, featuring discussions on key themes reshaping the industry’s future, including innovation, capital attraction, and talent development. 

In 2023, a survey conducted at DWIC revealed an 87 percent confidence in the Middle East, Africa, and Southern Asia market’s strategic opportunities. Property, health, energy, cyber, and liability lines of business were identified as holding the most potential. The survey also highlighted an 85 percent confidence rate in renewals and client retention. 

Over two decades, DIFC has fostered the growth of the insurance and reinsurance industry, attracting talent and expertise to access key markets in the Middle East, Asia, and Africa.  

The center hosts major insurance brokers, five of which are top ranked by the specialized insurance credit rating agency, AM Best. This has contributed to a significant 61 percent increase in brokered premiums compared to 2022, surpassing the $2 billion mark and solidifying DIFC’s position as a global market for insurance and reinsurance placements. 


Dubai Real Estate Brokers Program attracts 25 strategic partnerships

Updated 29 April 2024
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Dubai Real Estate Brokers Program attracts 25 strategic partnerships

RIYADH: Dubai’s property market is set to grow, with the Real Estate Brokers Program securing 25 partnerships with brokerage companies and developers in the private sector. 

According to a press statement, the first phase of the program, launched in mid-March and headed by the Dubai Land Department, also received over 1,000 registrations from Emirati citizens. 

Dubai Real Estate Brokers Program aims to increase the proportion of citizen brokers from 5 percent to 15 percent over the next three years to enhance the participation of young citizens in the Emirate’s developmental initiatives across various key sectors. 

“This reflects the early positive impact of the program, showcasing citizens’ aspirations and eagerness to engage as real estate brokers and acknowledging the pivotal role of Dubai’s real estate sector locally and globally,” said Marwan bin Ghalita, acting director general of Dubai Land Department. 

The initiative also aligns with Dubai Social Agenda 33, which seeks to triple the number of Emiratis working in the private sector.

Ghalita added that the program will help young talents in the nation enhance their productivity, therefore contributing to Dubai’s economic growth. 

“Dubai consistently offers outstanding examples of collaboration and synergy between the private and public sectors,” said Ghalita. 

He added: “With the program’s enrollment exceeding 1,000 citizens and real estate companies continuing to join the strategic alliance within a short period, we are diligently working toward achieving all the ambitious goals of the Dubai Real Estate Brokers Programme. In particular, Emirati real estate brokers will increase from 5 percent to 15 percent over the next three years.” 

The program also encompasses additional initiatives, including Emirati real estate broker licensing, encouraging property developers to allocate a portion of their sales to local agents, and empowering citizens in the property sector. 

Under the partnership with the private sector, citizen participants will receive various support packages to enhance the competitive edge of UAE people and enable them to take up roles in the real estate sector. 

The press statement added that efforts would also be made to allocate 10 percent to 15 percent of the development company’s sales to be marketed by Emirati real estate brokers, therefore contributing to the empowerment of national citizens by offering them employment opportunities in the property market. 


Dubai ruler approves new $35bn airport terminal

Updated 29 April 2024
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Dubai ruler approves new $35bn airport terminal

CAIRO: Dubai’s ruler Sheikh Mohammed bin Rashid Al-Maktoum approved a new passenger terminal in Al Maktoum International airport worth 128 billion dirhams ($34.85 billion), he said on Sunday in a post on X.

The Al Maktoum International Airport will be the largest in the world with a capacity of up to 260 million passengers, and five times the size of Dubai International Airport, he added, saying that all operations at Dubai airport would be transferred to Al Maktoum in the coming years.

The Al Maktoum airport will also include 400 terminal gates and five runways, he said.

The airport will be the new home of flagship carrier Emirates and its sister low-cost airline Flydubai along with all airline partners connecting the world to and from Dubai, Dubai state-owned airline Emirates chairman Sheikh Ahmed bin Saeed Al-Maktoum said.

The move “further solidifies Dubai’s position as a leading aviation hub on the world stage,” the CEO of Dubai Airports, Paul Griffiths, was quoted as saying by the Dubai Media Office.