Despite the ruling, there is only a slim chance for immediate change in a fossil fuel-friendly state where Republicans dominate the statehouse. AFP
Despite the ruling, there is only a slim chance for immediate change in a fossil fuel-friendly state where Republicans dominate the statehouse. AFP
Despite the ruling, there is only a slim chance for immediate change in a fossil fuel-friendly state where Republicans dominate the statehouse. AFP
Despite the ruling, there is only a slim chance for immediate change in a fossil fuel-friendly state where Republicans dominate the statehouse. AFP

Montana youth climate activists gain historic win in court


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In a landmark climate trial on Monday, a Montana court ruled in favour of a group of young people who accused the western US state of violating their right to a clean environment.

District Court Judge Kathy Seeley said a state law preventing agencies from considering the impacts of greenhouse gases when issuing permits for fossil fuel development was unconstitutional.

Ms Seeley wrote in her more than 100-page ruling that “Montana’s emissions and climate change have been proven to be a substantial factor in causing climate impacts to Montana’s environment and harm and injury” to young people, AP reported.

“Plaintiffs have a fundamental constitutional right to a clean and healthful environment, which includes climate as part of the environmental life-support system,” Ms Seeley wrote.

However, it is up to the state legislature to determine how to bring policies into compliance.

That leaves slim chances for immediate change in a fossil fuel-friendly state where Republicans dominate the statehouse.

The case, Held v Montana, brought by plaintiffs ranging in age from five to 22, has been closely watched because it could bolster similar litigation that has been filed across the country.

The case was the first involving a constitutional claim against a state and also represented a rare instance in which climate experts were questioned on the witness box, AFP reported.

At the heart of the case was a provision within the fossil fuel friendly state's constitution that says: “The state and each person shall maintain and improve a clean and healthful environment in Montana for present and future generations.”

The youths said they had been harmed by the “dangerous impacts of fossil fuels and the climate crisis”, with children “uniquely vulnerable” to its worsening effects.

Lawyers from legal non-profit Our Children’s Trust spearhead the cases, and lauded the “sweeping” victory in Montana, Bloomberg reported.

“Today, for the first time in US history, a court ruled on the merits of a case that the government violated the constitutional rights of children through laws and actions that promote fossil fuels, ignore climate change and disproportionately imperil young people,” the organisation's legal counsel Julia Olson said in a statement.

RESULTS

Bantamweight: Victor Nunes (BRA) beat Azizbek Satibaldiev (KYG). Round 1 KO

Featherweight: Izzeddin Farhan (JOR) beat Ozodbek Azimov (UZB). Round 1 rear naked choke

Middleweight: Zaakir Badat (RSA) beat Ercin Sirin (TUR). Round 1 triangle choke

Featherweight: Ali Alqaisi (JOR) beat Furkatbek Yokubov (UZB). Round 1 TKO

Featherweight: Abu Muslim Alikhanov (RUS) beat Atabek Abdimitalipov (KYG). Unanimous decision

Catchweight 74kg: Mirafzal Akhtamov (UZB) beat Marcos Costa (BRA). Split decision

Welterweight: Andre Fialho (POR) beat Sang Hoon-yu (KOR). Round 1 TKO

Lightweight: John Mitchell (IRE) beat Arbi Emiev (RUS). Round 2 RSC (deep cuts)

Middleweight: Gianni Melillo (ITA) beat Mohammed Karaki (LEB)

Welterweight: Handesson Ferreira (BRA) beat Amiran Gogoladze (GEO). Unanimous decision

Flyweight (Female): Carolina Jimenez (VEN) beat Lucrezia Ria (ITA), Round 1 rear naked choke

Welterweight: Daniel Skibinski (POL) beat Acoidan Duque (ESP). Round 3 TKO

Lightweight: Martun Mezhlumyan (ARM) beat Attila Korkmaz (TUR). Unanimous decision

Bantamweight: Ray Borg (USA) beat Jesse Arnett (CAN). Unanimous decision

Indika
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: August 14, 2023, 6:52 PM