Commitments by the EU, the US, China and others to cut greenhouse gas emissions address only one element of a global climate deal. Financing from developed countries is also required to help developing countries to limit their emissions and adapt to climate change without the poor becoming even worse off. Both public and private investment flows from developed countries will be critical to the development and deployment of renewable energy, carbon capture and storage, and other green technologies in fast-growing, developing countries.
Last month's Copenhagen Accord promised ?70bn (Dh370bn) to developing countries for mitigation and adaptation efforts. But the Accord does not specify whether this sum will be new money or redirected official development assistance (ODA). Given their experience with shortfalls in promised ODA and the disappearing donor problem, developing countries do not trust the rich countries to pay later what they promise now. Rich countries are suspicious that the funds they send will not be used effectively for mitigation. To break this impasse, a new institution - a global climate finance registry - should be established to monitor that promised funds are delivered to developing countries and that the latter are really reducing emissions.
The underlying reality is that significant new funding (in excess of that promised in Copenhagen) is needed to limit warming to 2°C. An estimated ?55-?80bn in international financing is needed annually by 2020 to curb emissions in developing countries. Additional monies for adaptation will also be required. Most of this will come from public sources, including bilateral ODA, domestic emissions allowance auctions, the World Bank and other multilateral programmes, and international marine and aviation levies. But private finance must supply the balance, which could be up to ?30bn annually.
This will largely be generated through international carbon markets. Emissions reductions in developing countries that are achieved through projects financed in part by private capital will generate offsets that are sold to regulated sources in developed countries under the cap-and-trade system. But how do we value and count private finance, and who should get credit for sending it? A similar accounting system is also needed for public finance.
At the Copenhagen conference, Mexico and Norway proposed a comprehensive multilateral fund that would disperse public funds raised from rich nations through a global contribution formula. But a huge global fund is politically infeasible and would likely be too rigid and bureaucratised, stifling innovation and experimentation.
It is only by engaging the private sector through market instruments that cost and environmentally effective development and application of new technologies can be achieved. Climate finance will necessarily be provided through a wide variety of public and private sources and mechanisms.
Ensuring that funding commitments from developed countries are credible requires an institution that can verify financial transfers and emission-reduction undertakings. What is needed is a global climate finance registry.
The registry would not disburse or spend funds or regulate carbon markets. Rather, it would first register climate finance commitments by developed countries to finance mitigation, adaptation, and technology transfer in developing countries from both public and private sources. Second, based on reports from participating countries, the registry would account for the funds actually delivered by developed countries and spent in developing countries. Third, it would apply methodologies for tracking emissions reductions actually achieved by public and private mitigation funding.
By providing a transparent overall accounting for climate finance commitments and expenditures, the registry would enable countries to judge the efforts of others, hold both donor and recipient nations accountable, and promote compliance with international commitments. It would also enable the global community to track the total amount of international finance being spent for climate mitigation and estimate the emissions reductions achieved as a result. This will send needed signals to private industry about states' commitment to carbon pricing and future public finance flows.
Developing and operating a global finance registry should be the responsibility of an international body. The details of this registry and its governance cannot be resolved in a matter of weeks or months. But in the short-term, the international climate negotiations must agree on a comprehensive framework and set of principles for both public and private climate finance and a climate finance registry. Such agreement is essential to winning trust and participation from developing nations, in providing avenues to engage both investors and sponsors of technologies in the private sector, and to ensure that there will be sufficient resources to curb and adapt to climate change.
Richard B Stewart and Benedict Kingsbury are professors at NYU School of Law, where Bryce Rudyk is a research fellow. They are the editors of Climate Finance: Regulatory and Funding Strategies for Climate Change and Global Development
The%20Sandman
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Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.
Based: Riyadh
Offices: UAE, Vietnam and Germany
Founded: September, 2020
Number of employees: 70
Sector: FinTech, online payment solutions
Funding to date: $116m in two funding rounds
Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices
How to get there
Emirates (www.emirates.com) flies directly to Hanoi, Vietnam, with fares starting from around Dh2,725 return, while Etihad (www.etihad.com) fares cost about Dh2,213 return with a stop. Chuong is 25 kilometres south of Hanoi.
Zayed Sustainability Prize
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
LA LIGA FIXTURES
Saturday (All UAE kick-off times)
Valencia v Atletico Madrid (midnight)
Mallorca v Alaves (4pm)
Barcelona v Getafe (7pm)
Villarreal v Levante (9.30pm)
Sunday
Granada v Real Volladolid (midnight)
Sevilla v Espanyol (3pm)
Leganes v Real Betis (5pm)
Eibar v Real Sociedad (7pm)
Athletic Bilbao v Osasuna (9.30pm)
Monday
Real Madrid v Celta Vigo (midnight)
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
Heather, the Totality
Matthew Weiner,
Canongate
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
THE%C2%A0SPECS
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More on Quran memorisation:
UAE currency: the story behind the money in your pockets
COMPANY%20PROFILE
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Company%20Profile
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The National's picks
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
8.50pm: Calandogan
9.30pm: Forever Young
GIANT REVIEW
Starring: Amir El-Masry, Pierce Brosnan
Director: Athale
Rating: 4/5
Why seagrass matters
- Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
- Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
- Biodiversity: Support species like sea turtles, dugongs, and seabirds
- Coastal protection: Reduce erosion and improve water quality
