US national security bodies will be integrating climate change effects into their planning, the White House said. Getty Images / AFP
US national security bodies will be integrating climate change effects into their planning, the White House said. Getty Images / AFP
US national security bodies will be integrating climate change effects into their planning, the White House said. Getty Images / AFP
US national security bodies will be integrating climate change effects into their planning, the White House said. Getty Images / AFP

US intelligence services see security threat in climate change


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US intelligence services said on Thursday for the first time that climate change poses wide-ranging threats to national security and stability around the world.

More extreme weather “will increasingly exacerbate a number of risks to US national security interests, from physical impacts that could cascade into security challenges, to how countries respond to the climate challenge,” the White House said in a summary of the intelligence reports.

The prediction was made in the first official assessment by the Office of the Director of National Intelligence, which oversees the sprawling US intelligence apparatus.

The document “represents the consensus view of all 18" elements in the intelligence community, the White House said.

The agencies said that climate change is driving “increased geopolitical tension as countries argue over who should be doing more”, cross-border “flashpoints” as countries respond to climate change impact by trying to secure their own interests and fallout from climate on national stability in some countries.

On a practical level, US national security bodies will be integrating climate change effects into their planning, the White House said.

The Pentagon, for example, will consider climate change “at every level, which will be essential to train, fight and win in an increasingly complex environment".

Migration, a politically sensitive issue on the US southern border, will also be seen partly through the lens of climate change, the White House said.

  • Around $3.5 trillion is required between now and 2050 to meet targets for a 'sustainable path', according to the International Energy Agency. AP Photo
    Around $3.5 trillion is required between now and 2050 to meet targets for a 'sustainable path', according to the International Energy Agency. AP Photo
  • The makeshift Suweida camp for internally displaced people in Yemen’s Marib province. The effects of climate change have exacerbated the displacement of local populations during the country’s war. AFP
    The makeshift Suweida camp for internally displaced people in Yemen’s Marib province. The effects of climate change have exacerbated the displacement of local populations during the country’s war. AFP
  • A firefighter monitors a controlled burn, near Jolon, California.Frequent wildfires are an indication of climate change further getting out of control, say environmentalists. Bloomberg
    A firefighter monitors a controlled burn, near Jolon, California.Frequent wildfires are an indication of climate change further getting out of control, say environmentalists. Bloomberg
  • Wildfire burns through the Angeles National Forest in Los Angeles County, north of Azusa, California. AFP
    Wildfire burns through the Angeles National Forest in Los Angeles County, north of Azusa, California. AFP
  • Steam rises from a steel mill in Duisburg, Germany. Some countries are using the coronavirus pandemic to wind back climate change commitments, say environmentalists. Getty Images
    Steam rises from a steel mill in Duisburg, Germany. Some countries are using the coronavirus pandemic to wind back climate change commitments, say environmentalists. Getty Images
  • A deforested area close to Sinop, Mato Grosso State, Brazil. Deforestation in Brazil's Amazon rainforest rose by almost 22 percent from August 2020 to July 2021, compared with the same period the year before, reaching a 15-year high. AFP
    A deforested area close to Sinop, Mato Grosso State, Brazil. Deforestation in Brazil's Amazon rainforest rose by almost 22 percent from August 2020 to July 2021, compared with the same period the year before, reaching a 15-year high. AFP

“This assessment marks the first time the US government is officially recognising and reporting on this linkage.”

The report was issued right before the Cop26 climate summit in Glasgow, Scotland, which President Joe Biden will be attending.

“With more than 85 per cent of global emissions coming from beyond US borders, we alone cannot solve this challenge. We need the rest of the world to accelerate their progress,” a senior US official, who asked not to be identified, told reporters.

“It is definitely a security issue and a national security issue.”

A separate government report issued later on Thursday characterised climate-related risk as “an emerging threat to financial stability of the United States,” the Financial Stability Oversight Council reported.

Recommendations included directives for regulators to require additional climate disclosures of companies and other regulated entities and consider mandates for them to undertake “scenario analysis” on climate outcomes.

“This report puts climate change squarely at the forefront of the agenda,” Treasury Secretary Janet Yellen said at a meeting of the council, which was set up after the 2008 financial crisis.

Ms Yellen described the report as a “critical first step” as she called for immediate action, saying “the longer we wait to address the underlying causes of climate change, the greater the risk".

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When: July 7-29

UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland

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MATCH INFO

Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid

When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid

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

EU Russia

The EU imports 90 per cent  of the natural gas used to generate electricity, heat homes and supply industry, with Russia supplying almost 40 per cent of EU gas and a quarter of its oil. 

Updated: October 21, 2021, 11:09 PM