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COP28: World-leading economists set out next steps to reform intl climate finance


A two-day meeting of world leading economists and finance leaders convened by the COP28 Presidency has delivered consensus on the key next steps needed to establish a new framework for international climate finance and to drive progress at COP28 and beyond to COP29 and COP30.
World-leading economists from the Independent High-Level Expert Group (IHLEG) met with figures from leading global institutions, including the World Bank, IMF, ECF and IFC, the COP28 and COP27 Presidencies and UN Climate Change High-Level Champions for two days of talks in Abu Dhabi from August 15-16.
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Those assembled agreed that they will come to COP28 with recommendations on a new framework for international climate finance, as well as a definitive roadmap on how to implement the recommendations, the Emirates News Agency (WAM) reported.
Particular areas of focus for the new framework will include addressing debt distress in vulnerable countries, and the role of the private sector in delivering increased finance. Here, the group recognised that although private finance flows are growing, they need to grow much faster to meet the $2.4 trillion total investment estimated to be needed annually by 2030 to address climate change in emerging markets and developing economies.

The roadmap will be designed to guide all institutions – UN agencies, the IMF, WB, regional MDBs, national governments and the private sector – around short and long-term plans to achieve the Paris Agreement. Agreement on the roadmap at COP28 will allow leaders across the public, private, and third sectors to drive forward a clear plan of action on international climate finance.
All those in the meetings were unanimous in their agreement that finance is fundamental to enabling the delivery of solutions to enable the transition to a net-zero, climate-resilient future. They also agreed that the primary focus of their work would be to rapidly increase international climate finance between now and the end of the decade to support emerging markets and developing economies mitigation and adaptation initiatives.
Dr. Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology and COP-28 President-Designate, opened the meetings with a clear call to action for those attending to deliver “a detailed action-oriented framework and tangible recommendations that lead to real results.”
Following the meeting, he commented, “For too long, climate finance has divided the international community and held back progress in tackling climate change and supporting countries most impacted by it. But climate finance is the issue that lies at the core of the COP28 agenda because finance is how we transform goals into reality.
“The time for action is right now. I would like to thank everyone who attended the IHLEG meetings, and for their focus and determination in developing a new framework for climate finance. This new framework needs to be comprehensive. It needs to cover both adaptation and mitigation. And it needs to unlock a supercharged stream of private capital. All forms of finance must be made more available, more accessible, and more affordable. MDBs must be adequately capitalized and provide much more concessional finance to lower risk and bring more private capital to the table. And we need to explore innovative new mechanisms for managing currency risk. I am confident that the assembled experts who have devoted their time to this effort, will find solutions to unlock climate finance.”
Lord Nicholas Stern, co-chair of the IHLEG, said, “These meetings have proved to be very fruitful, in large measure due to the leadership of Dr Sultan and the support from his team. We are all in no doubt of the urgency of the challenges, of the scale of the problems that we must tackle, and of the global action necessary to rise to these challenges. This is a moment where all stakeholders must step up, including the MDBs, their shareholders, and the private sector. We will continue to work with the COP28 Presidency to drive forward in the weeks ahead.”
Dr. Vera Songwe, co-chair of the IHLEG, also noted, “Over the last few months every corner of the world has been hit by a climate event. We must act fast, collectively and at scale to turn these climate disruptions into a growth opportunity for people and planet. The IHLEG group, the COP28 president and all the esteemed colleagues gathered here agree that raising the US$2.4 trillion will not be sufficient if we do not accelerate implementation. I look forward to a COP28 that will deliver impact.”
Kristalina Georgieva, Managing Director of the International Monetary and also in attendance, stated, “The IMF is committed to ensuring climate policy support and finance are reaching those most in need, and I am thankful to the leadership of COP28 for convening this important meeting today. We look forward to partnering with all stakeholders in the lead up to COP28 and working to drive stronger partnerships between the public and private sector for climate success.”
The IHLEG meetings in Abu Dhabi were attended by a host of cross-sector senior leaders and actors in international climate finance including Sheikha Shamma, President and Chief Executive Officer, UAE Independent Climate Change Accelerators (UICCA); Larry Summers, economist and former US Treasury Secretary; Mark Carney, economist and former governor of the Bank of England; Todd Stern, United States' chief negotiator at the 2015 Paris Climate Agreement; NK Singh, prominent Indian economist, academician, and policymaker; Tubiana Laurence, CEO of the European Climate Foundation (ECF); Makhtar Diop, managing director of the International Finance Corporation; Rachel Kyte, 14th dean of The Fletcher School at Tufts University; Mark Gallogly, investor and climate change activist; Rania Al-Mashat, Minister of International Cooperation, Egypt; Mahmoud Mohieldin, Climate Champion, COP27; Nigel Topping, UN Climate Change High-Level Champion at COP26; Alain Ebobissé, CEO, Africa50; Harry Boyd-Carpenter, Managing Director Green Economy and Climate Action, EBRD; and Hamad Sayah Al Mazrouei, CEO, ADGM Registration Authority.
The IHLEG develops and presents policy options and recommendations to enable the public and private investment necessary for delivery of the ambitions of the Paris Climate Agreement. Its ultimate goal is to advance a holistic financial framework for resource mobilisation to deliver an equitable and efficient climate finance system, as set out in the Paris Agreement and Glasgow Pact and start its implementation.
The COP28 UAE Presidency has named ‘fixing climate finance’ one of its four priority action pillars for COP28, alongside fast-tracking the energy transition, ensuring full inclusivity, addressing lives and livelihoods.
Enabling the energy transition in Emerging Markets and Developing Economies, as well as supporting countries most impacted by climate change, is fundamental to the COP28 Presidency’s ambition.
Alongside its work with IHLEG, it is working with the G20 High Level expert group on international climate finance and with Germany and Canada to progress the delivery of the S$100-billion commitment. The COP28 presidency is also seeking to make substantial progress on the doubling of adaptation finance by 2025, deliver a strong replenishment of the Green Climate Fund and see agreement on the funding arrangements for loss and damage at COP28.

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Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

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AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

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Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

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