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Keeping Global Warming to well below 2°C

Keeping Global Warming to well below 2°C

The word “climate” makes most of us look up to the sky – however, the IPCC’s new special report on climate change and land should make us all look under our feet. This is how Anna Krzywoszynska, Research Fellow and Associate Director of the Institute for Sustainable Food, University of Sheffield introduced her article published on The Conversation of last week before adding that ‘Land, the report shows, is intimately linked to the climate. Changes in land use result in changes to the climate and vice versa. In other words, what we do to our soils, we do to our climate – and ourselves.’ So, keeping Global Warming to well below 2°C is the hurdle that all humans need to get over in order to achieve the Paris Agreement requirements.

How? Here is Trade Arabia’s.

Keeping Global Warming to well below 2°C
Land is under pressure from humans and climate
change, but it is part of the solution, says IPCC

Land a critical resource to cut emissions: IPCC

Land is already under growing human pressure and climate change is adding to these pressures. At the same time, keeping global warming to well below 2C can be achieved only by reducing greenhouse gas emissions from all sectors including land and food, the Intergovernmental Panel on Climate Change (IPCC) said in its latest report.

“Governments challenged the IPCC to take the first ever comprehensive look at the whole land-climate system. We did this through many contributions from experts and governments worldwide. This is the first time in IPCC report history that a majority of authors – 53 per cent – are from developing countries,” said Hoesung Lee, chair of the IPCC.

This report shows that better land management can contribute to tackling climate change, but is not the only solution. Reducing greenhouse gas emissions from all sectors is essential if global warming is to be kept to well below 2C, if not 1.5C.

In 2015, governments backed the Paris Agreement goal of strengthening the global response to climate change by holding the increase in the global average temperature to well below 2C above pre-industrial levels and to pursue efforts to limit the increase to 1.5C.

Land must remain productive to maintain food security as the population increases and the negative impacts of climate change on vegetation increase. This means there are limits to the contribution of land to addressing climate change, for instance through the cultivation of energy crops and afforestation. It also takes time for trees and soils to store carbon effectively.

Bioenergy needs to be carefully managed to avoid risks to food security, biodiversity and land degradation. Desirable outcomes will depend on locally appropriate policies and governance systems.

Climate Change and Land finds that the world is best placed to tackle climate change when there is an overall focus on sustainability. “Land plays an important role in the climate system,” said Jim Skea, Co-Chair of IPCC Working Group III.

“Agriculture, forestry and other types of land use account for 23 per cent of human greenhouse gas emissions. At the same time natural land processes absorb carbon dioxide equivalent to almost a third of carbon dioxide emissions from fossil fuels and industry,” he said.

The report shows how managing land resources sustainably can help address climate change, said Hans-Otto Pörtner, co-chair of IPCC Working Group II.

“Land already in use could feed the world in a changing climate and provide biomass for renewable energy, but early, far-reaching action across several areas is required. Also for the conservation and restoration of ecosystems and biodiversity,” he added.

Desertification and land degradation

When land is degraded, it becomes less productive, restricting what can be grown and reducing the soil’s ability to absorb carbon. This exacerbates climate change, while climate change, in turn, exacerbates land degradation in many different ways.

“The choices we make about sustainable land management can help reduce and in some cases reverse these adverse impacts,” said Kiyoto Tanabe, co-chair of the Task Force on National Greenhouse Gas Inventories.

“In a future with more intensive rainfall the risk of soil erosion on croplands increases, and sustainable land management is a way to protect communities from the detrimental impacts of this soil erosion and landslides. However there are limits to what can be done, so in other cases degradation might be irreversible,” he said.

Roughly 500 million people live in areas that experience desertification. Drylands and areas that experience desertification are also more vulnerable to climate change and extreme events including drought, heatwaves, and dust storms, with an increasing global population providing further pressure.

The report sets out options to tackle land degradation and prevent or adapt to further climate change. It also examines potential impacts from different levels of global warming. “New knowledge shows an increase in risks from dryland water scarcity, fire damage, permafrost degradation and food system instability, even for global warming of around 1.5C,” said Valérie Masson-Delmotte, co-chair of IPCC Working Group I.

“Very high risks related to permafrost degradation and food system instability are identified at 2°C of global warming,” she said.

– TradeArabia News Service

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Aramco Takes a Beating by S. Jack Heffernan

Aramco Takes a Beating by S. Jack Heffernan

Lots are happening as far as fossil fuels are concerned, whether in the MENA region or elsewhere. For instance, Aramco Takes a Beating by S. Jack Heffernan, PhD was published on LiveTradingNews of August 12, 2019.

It is yet another piece of information from the trading world ups and downs that seem to demonstrate the ephemeral character of all hydrocarbons related businesses. In effect, Aramco Takes a Beating, as an article clearly shows how traders apart from their daily routines visualise their emotional involvement.

Aramco Takes a Beating by S. Jack Heffernan

Saudi state-owned energy giant Aramco said Monday its first-half net income for 2019 had slipped to $46.9 billion, a first such disclosure for the secretive company ahead of its debut earnings call.

“The company’s net income was $46.9 billion for the first half (of) 2019, compared to $53.0 billion for the same period last year,” the company said in a statement.

The fall in income, owing to lower oil prices, comes amid renewed speculation the company was preparing for its much-delayed overseas stock listing.

“Despite lower oil prices during the first half of 2019, we continued to deliver solid earnings and strong free cash flow,” Aramco CEO Amin Nasser was quoted as saying in the statement.

It is the first time the company has published half-year financial results and comes after Aramco opened its secretive accounts for the first time in April as it prepares to raise funds from investors.

It made no mention of the planned initial public offering in Monday’s statement.

Crown Prince Mohammed bin Salman has previously said the IPO — dubbed as potentially the world’s biggest stock sale — would take place in late 2020 or early 2021.

Saudi Arabia plans to sell up to five per cent of the world’s largest energy firm and hopes to raise up to $100 billion.

The planned IPO forms the cornerstone of a reform programme envisaged by Prince Mohammed to wean the Saudi economy off its reliance on oil.

Saudi Arabia has not announced where the listing will be held, but London, New York and Hong Kong have all vied for a slice of the much-touted IPO.

View all posts by S. Jack Heffernan, PhD

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S. Jack Heffernan Ph.D is CEO at HEFFX.

S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several startups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen startups in Mining, Shipping, Technology and Financial Services.1

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Growing pull towards entrepreneurship in the UAE

Growing pull towards entrepreneurship in the UAE

Gulf Business and Middle East Affairs of August 10, 2019, informed that a Growing pull towards entrepreneurship in the UAE is and remains as strong as it could be despite all regional turpitudes and other hydrocarbons related market volatilities.

A recent survey suggests that almost seven out of 10 employees want to start their own companies despite concerns over procuring finances.

The pull of self-employment is as strong as ever in the region, according to a recent report by Middle East jobs site Bayt.com and global research firm YouGov.

In Bayt.com’s survey, Entrepreneurship in the Middle East and North Africa 2019, in the UAE some 69 per cent of respondents said they want to quit their current job and be their own boss instead. 54 per cent cited freedom over their work-life balance as the reason behind their thinking, while 42 per cent of them said they aimed to find personal fulfilment.

What’s more, some 73 per cent admitted that they are currently thinking of starting a business, while only 7 per cent say they have never thought of starting their own business.

Looking at the wider MENA region, for those who had already made the leap into entrepreneurship, 33 per cent said they left their previous jobs in order to increase their income, while 27 per cent said they wanted to do something they loved, and 25 per cent said they had a great business idea or concept.

The most appealing industries for prospective entrepreneurs were found to be IT / internet / e-commerce (10 per cent), commerce / trade / retail (9 per cent), consumer goods / FMCG (8 per cent), and real estate/ construction/ property development (8 per cent).

The report was published shortly after recruitment firm Robert Walters shared their own new research, which showed 73 per cent of professionals in the Middle East have left a job because they disliked the company’s culture. Some 82 per cent said they have previously worked for a company where they disliked the company culture. Both statistics suggest a further reason the number of would-be entrepreneurs is so high.

Bayt.com’s report also shows that the main concern of respondents while setting up their own business would be procuring finances to start (61 per cent), and the uncertainty of profit or income (41 per cent).

These concerns haven’t stopped increased numbers of people opening businesses – at least in Dubai, where the number of new business licenses in the first four months of 2019 grew by 35 per cent compared to the same period in 2018. The emirate’s Department of Economic Development issued 9,489 new licenses between January and April.

Start-ups and SMEs have long been the backbone of GCC economies, with SMEs making up around 98 per cent of business in the UAE, contributing approximately 53 per cent of gross domestic product (GFP). Under the country’s Vision 2021 plans, the government is seeking to increase this contribution to 60 per cent by 2021.

Earlier this year, as part of the UAE’s bid to improve ease of doing business, the Federal Authority for Identity and Citizenship started issuing five-year residency visas to entrepreneurs – a move that drew more than 6,000 applications. It’s one of a series of moves that aim to improve opportunities for the wider SME community.

Another is Dubai’s recent package of initiatives by the emirate’s Department of Finance, announced in March. These initiatives include paying the dues of SMEs that supply services and goods to government agencies sooner, reducing the value of primary insurance for SMEs, cutting ‘performance insurance’ rates, calling for 5 per cent of government capital projects to be allocated to SMEs, and seeing projects worth Dhs1bn allocated to public-private partnerships.

Saudi Arabia has also striven to lay more accommodating foundations for entrepreneurs, such as 2018’s launch of an entrepreneur license that allows new companies to benefit from a range of SME services and incentives. At April’s World Economic Forum, the kingdom’s energy minister Khalid Al Falih told delegates that Saudi’s start-up scene is “moving faster than anyone can imagine” and will create hundreds of thousands of jobs in the coming years.

“I predict that by 2030, companies that we don’t know today will be among the top 20 or 30 companies in Saudi Arabia. They will be driven by innovation, they will be driven by young people, they will be driven by women,” he added.

Backed by public sector support, those 69 per cent of people cited by Bayt.com’s survey are surely in as strong a position as ever to realize success should they take the step into the world of entrepreneurship.

Turkey starts filling huge Tigris river dam

Turkey starts filling huge Tigris river dam

Reuters’ ENVIRONMENT reported on August 2, 2019, that Turkey starts filling huge Tigris river dam, activists say in an article by Ali Kucukgocmen.

ISTANBUL (Reuters) – Turkey has started filling a huge hydroelectric dam on the Tigris river, a lawmaker and activists said, despite protests that it will displace thousands of people and risks creating water shortages downstream in Iraq.

FILE PHOTO: A general view of the ancient town of Hasankeyf by the Tigris river, which will be significantly submerged by the Ilisu dam being constructed, in southeastern Turkey, June 1, 2019. REUTERS/Umit Bektas

Citing satellite images, they said that water was starting to build up behind the Ilisu dam, a project that has been decades in the making and which aims to generate 1,200 megawatts of electricity for southeast Turkey.

Turkish officials have not commented on work at the dam. Turkey’s State Hydraulic Works (DSI), which oversees dam projects, referred questions to the Presidency, and the Agriculture and Forestry Ministry was not available to comment.

However, President Tayyip Erdogan said earlier this year that Turkey would start filling the Ilisu dam in June, a year after it briefly held backwater before backing down following complaints from Iraq about reduced water flows in mid-summer.

The dam, which first gained Turkish government approval in 1997, is a key part of Turkey’s Southeastern Anatolia Project, designed to improve its poorest and least developed region.

FILE PHOTO: The Tigris river flows through the ancient town of Hasankeyf, which will be significantly submerged by the Ilisu dam being constructed, in southeastern Turkey, August 26, 2018. REUTERS/Sertac Kayar

Iraq says the dam will create water shortages by reducing flows in one of two rivers which the country depends on for much of its supplies. Around 70% of Iraq’s water supplies flow from neighboring countries, especially via the Tigris and Euphrates rivers which run through Turkey.

Satellite images from the past two weeks show the dam has started holding water, said Necdet Ipekyuz, a lawmaker from Turkey’s pro-Kurdish Peoples’ Democratic Party (HDP). He said a road in the area has already been submerged.

“They are taking steps slowly to decrease the reactions to water being held. That is why they are not informing the public,” he said, adding that several HDP lawmakers tried to visit the dam in July but were prevented by police.

Environmental campaigners have unsuccessfully challenged the dam project at the European Court of Human Rights on the grounds it would damage the country’s cultural heritage.

SUBMERGED TOWN

The rising waters of the dam are also expected to eventually submerge the 12,000-year-old town of Hasankeyf. Residents are being moved from the ancient town to a “New Hasankeyf” nearby, while historic artefacts have also been transported out of the area.

A group of NGOs, lawmakers and labor unions shared satellite images of the dam showing the increase in water levels between July 19-29.

“The current situation is strengthening the idea that the valves have been closed permanently,” the group, known as Hasankeyf Coordination, said in a statement.

“Because the dam lake is growing every day, the people who live in these areas are worried. They cannot know when the water will reach their residential or agricultural areas.”

The Iraqi government said in a statement that Turkish and Iraqi officials had discussed the water resources of the two rivers in Baghdad on Wednesday to see how they could “serve the interests of both countries”.

Turkey proposed setting up a joint research center in Baghdad for water management and to work together on some agriculture plantations in Iraq, as well as projects for development of drinking water infrastructure. FILE PHOTO: The Tigris river flows through the ancient town of Hasankeyf, which will be significantly submerged by the Ilisu dam being constructed, in southeastern Turkey, August 26, 2018. REUTERS/Sertac Kayar

The European Court of Human Rights in February dismissed the case brought by environmental campaigners to block the dam project, saying heritage protection is the responsibility of Turkish authorities and it had no jurisdiction.

The government needs to make an announcement, even if the dam were being filled for a trial run, said HDP’s Ipekyuz. “They are trying to tie a belt around the Tigris river’s neck and suffocate it,” he said.

Additional reporting by John Davison and Ahmed Aboulenein in Baghdad; Editing by Dominic Evans and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

Funding for Climate Action in the MENA region

Funding for Climate Action in the MENA region

Green for Growth Fund (GGF) attracts EUR 4 million in new catalytic funding for climate action in the MENA region.

Climate Action in the Middle East North Africa (CAMENA) invests EUR 4 million in the GGF to attract private capital for helping the region fight climate change; together with EUR 5 million EIB investment, the contribution further strengthens GGF’s capacity for financing and promoting green energy measures.

The Green for Growth Fund (GGF), an impact investment fund advised by Finance in Motion, has attracted EUR 4 million in dedicated funding from the initiative Climate Action in the Middle East North Africa (CAMENA). Combined with EUR 5 million in support from the European Investment Bank (EIB) through the Luxembourg-EIB Climate Finance Platform in 2018, the GGF has increased its capacity to leverage further private investments for green lending in the region.

Created with the support of the U.K. Department for International Development, CAMENA is managed by the EIB as an initiative to help countries in the Southern Mediterranean fight climate change by funding targeted climate initiatives and vehicles, like the GGF. The EIB is also supporting the GGF’s efforts to drive climate action by providing additional funding through the Luxembourg-EIB Climate Finance Platform. The investments will be used to strengthen the GGF’s “C-shares”, a special risk-absorbing layer that enables the fund to attract private capital – which is crucial for channelling higher volumes of investment to achieve maximum impact.

The GGF has seen remarkable growth in its MENA investment portfolio, which increased by over 50% in volume in 2018 to cross the EUR 133 million mark. The GGF leverages public and private capital to fund pioneering green energy initiatives such as the Phoenix 50MW sub-project of the Benban Solar Park in Egypt, the largest solar farm in the world.

“Mobilising private finance for climate action projects in the MENA region is a key priority for the EU Bank.  That is why I am very pleased that we have finalised this investment in the Green for Growth Fund. We believe this support is an important signal of confidence in the fund’s potential. We expect that our commitment, which is strengthening the special risk absorbing a layer of the fund, will attract additional finance from the private sector to support transformative green energy projects in the region” said Barbara Boos, head of the Infrastructure Funds and Climate Action division of the EIB. 

“As a co-initiator of the GGF, EIB has been instrumental in supporting green energy initiatives in the MENA region through their trust funds. We value partners like the EIB, whose contributions absorb market risks so as to attract additional private investments, thus helping to make green finance mainstream,” said GGF Chairman Olaf Zymelka. “These kinds of initiatives enable funds like the GGF to become a testament to the power public capital can wield in engaging private capital,” he added.

Lloyd Stevens, Director at GGF advisor Finance in Motion, added: “The MENA region is highly susceptible to climate change on account of its water scarcity, high dependence on climate-sensitive agriculture, and concentration of population and economic activity in urban coastal zones. Therefore, we consider it crucial for the GGF to have a positive environmental impact in the region by promoting energy and resource efficiency, and the development of renewable energy sources.”
Distributed by APO Group on behalf of European Investment Bank (EIB).
Media files

European Investment Bank (EIB)
Economic uncertainties within the GCC countries

Economic uncertainties within the GCC countries

Travel AND Tour World published on Monday, July 29, 2019, this article elaborating on the current tourism together with other types of related business activities in the Gulf region. Dubai with its impressive urban development, artificial islands and other coastline attractions has been for a time spearheading the regional shopping and business tourism. The recent economic uncertainties within the GCC countries as well as through the political movements of the US, the EU and all other heavyweights vested interests of the world economy seem to be behind this story.

Tourism slowdown in Dubai’s Jumeirah cuts 500 jobs

Economic uncertainties within the GCC countries

Due to a slowdown in the emirate’s tourism industry, Jumeirah Group has cut hundreds of jobs and according to people familiar with the industry, it weighs on the operator of Dubai’s sail-shaped Burj Al Arab hotel.

As per sources hundreds of jobs were slashed recently by the operators of Burj Al Arab along with 24 hotels worldwide.

As the information was private the government-owned luxury hotel chain, which manages 24 properties in eight countries, recently shed about 500 jobs.

Jumeriah has more than 13,500 employees according to its website and most of the cuts were support roles.

The tourism sector is stalled causing Dubai’s hotels to struggle and the occupancy level was found to be the lowest during the second quarter since 2009.

The average daily rates and revenue available per room fell to 2003 levels as stated by STR, a global hotel data provider.

There has been an oversupply due to new opening ahead of the 2020 World Expo.

The geopolitical tensions, relatively low oil prices, the ongoing real estate and the retail slump has caused Dubai-based companies and real estate developer and banks to cut down their staffs.

New measures have been introduced by the Dubai government to stimulate the economy by lowering business fees and providing long-term visas.