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Warsaw Climate Change Conference Inconclusively Concludes
Warsaw Climate Change Conference Inconclusively Concludes
Warsaw-"For the third year in a row the (member) countries have found a new way to say absolutely nothing," asserted Oxfam director Winnie Byanyima, as the U.N.’s annual climate change conference limped inconsequentially to its end on Saturday in Warsaw. The 19th Conference of the Parties (COP-19) to the U.N. Framework Convention of Climate Change (UNFCCC) was supposed to set out a roadmap toward completing a global treaty that would bind all countries to some kind of commitments to reduce their greenhouse gas emissions after 2020 at the Paris COP-21 in 2015. No commitments were made and no clear roadmap was adopted at the Warsaw talks.
Citing the “historical responsibility” of rich countries for causing climate change, China, India, Brazil, South Africa and other developing countries want to maintain the original obligation established in the 1992 UNFCCC that only developed countries are required to do anything about man-made climate change. In the agreement reached at Warsaw, the developing countries, including the largest and fourth largest emitters of greenhouse gases—China and India—forced the rich countries to drop their insistence that all countries make “commitments” to address climate change. Instead, countries will now make vague nationally determined “contributions” toward addressing man-made global warming.
The United States and European negotiators in Warsaw had sought an agreement in which each country would use a common transparent framework for calculating its emissions reductions. In the new Warsaw agreement, countries set their own baselines and define their own reduction strategies, thus making comparisons between countries’ efforts far less transparent and harder to calculate.
The developed country negotiators also wanted all countries to put forward their initial commitments no later than the first quarter of 2015. That deadline would make it possible for the initial commitments to be critiqued before the 2015 Paris conference. The goal of the pre-Paris scrutiny would be to see if they were collectively adequate to keep the world on track toward restraining future global temperatures to an increase of no more than two degrees centigrade. Instead, countries will announce their contributions only when they were good and “ready to do so.”
The poor countries also demanded that the rich countries make commitments to establish a new bureaucratic mechanism under the UNFCCC to compensate them for the loss and damage caused by climate change. For their part, the rich countries did not want to create a new international agency that would be empowered to make them legally liable for weather damage anywhere in the world. The Warsaw agreements reached a compromise in which a Warsaw mechanism for loss and damage will be set up under the existing institutions that are supposed to fund projects that help poor countries to adapt to climate change. That decision, however, will be reviewed after three years.
In 2009, at the Copenhagen climate change conference, the rich countries committed to “mobilizing” $100 billion annually by 2020 to help poor countries to cope with climate change. At Warsaw, the poor countries sought to get the rich countries to pledge that they would hand over $70 billion per year by 2016 as an interim measure. The developing countries also wanted to make it clear that the climate change financing should be “mobilized” from public, not private funds. At Warsaw, the rich countries refused to make specific interim financial commitments, although they did agree to file biennial reports outlining what their plans are for funding climate change adaptation for poor countries between now and 2020.
So the Warsaw conference ended with no firm commitments on either greenhouse gas emissions or on finance. The diplomats and the activists will convene to do it all over again next year in Lima, Peru.
Source: Global Treaty
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Westhill Property Consulting London
U.S. millionaires see real estate as the top alternative-asset class to own this year, according to Morgan Stanley. (MS)
About 77 percent of investors with at least $1 million in assets own real estate, according to a survey released today by the New York-based investment bank’s wealth-management unit. Direct ownership of residential and commercial properties was the No. 1 alternative-investment pick for 2014, with a third of millionaire’s surveyed saying they plan to buy this year. Twenty-three percent said they expect to invest in real estate investment trusts, the second-most popular choice.
Wealthy investors are turning to a rebounding real estate market as fixed-income yields remain historically low and equities surge. U.S. commercial-property values rose 8 percent in the 12 months ended Jan. 31, and have jumped 71 percent since hitting their post-recession bottom in 2009, research firm Green Street Advisors Inc. reported today. The S&P/Case-Shiller index of home prices in 20 cities is up 24 percent from its 2012 low.
“After a year where the Standard & Poor’s Index rose 30 percent, some millionaires are moving money out of traditional, long-only strategies to find outperformance, and turning toward alternatives such as real estate and private equity,” said Gary Kaminsky, a vice chairman at Morgan Stanley Wealth Management in New York. “Sophisticated, high-net-worth investors are much more concerned about losses.”
Photographer: Victor J. Blue/Bloomberg
The One57 residential building stands while under construction in New York.
Collectibles ranked as the third-most-popular alternative-investment choice this year, with 20 percent of millionaires saying they planned to buy, followed by private equity at 19 percent and precious metals at 16 percent.
Interest Rates
Wealthy investors see stocks getting expensive and interest rates staying stable or even declining over the next couple of years, Kaminsky said in an interview at a conference for Tiger 21 investors last week in Scottsdale, Arizona. That’s why they are looking more closely at alternatives including real estate for returns and income, he said.
Tiger 21 members, who have at least $10 million in investable assets, increased their average allocation to real estate last year to 21 percent as of the fourth quarter from 19 percent in the first three months of 2013, according to a separate study released by the New York-based group last month.
Will Ade, a Tiger 21 member, said real estate is a particularly attractive investment as stocks show vulnerability in 2014. The S&P 500 has fallen more than 4 percent this year, while developing-country stocks have tumbled on concern that the outlook for economies is worsening.
‘Lame’ Bull
“We had a great bull run last year,” Ade, a 60-year-old geologist, said in an interview today. “I don’t know if the bull is dead, but it certainly is lame right now.”
This year may be the tail-end of attractive investments in property before interest rates rise, said Ade, who has made his money finding oil companies and private investors to fund the drilling of wells. He said he is trying to purchase residential real estate in Miami right now.
“The really good real estate deals are getting harder and harder to find,” Ade said. “Once interest rates start to go up, whether it’s farmland or single-family dwellings there’s going to be huge downward pressure on real estate.”
Foreign Buyers
The Manhattan high-rise condominium buildings One57 and 432 Park Ave., where units have gone under contract for more than $90 million, are evidence of the faith that the very wealthy have in real estate, said Mitchell Roschelle, real estate advisory leader at PricewaterhouseCoopers LLP. Such properties have also attracted international buyers.
Wealthy foreigners have bought high-end U.S. properties for their safety and because they’re denominated in dollars, the world’s reserve currency, he said. This helps domestic millionaires maintain the value of their property investments.
“It creates competition, which drives the price up for everybody,” he said. “The sellers have multiple channels to sell into. That gives you more liquidity.”
Self-storage properties are among commercial real estate investments wealthy individuals are buying, Kaminsky of Morgan Stanley said. Retail shopping centers are seen as less attractive as more consumers shop online through companies such as Amazon.com Inc., he said.
Chilean Fund
Morgan Stanley Wealth Management surveyed 1,004 U.S. investors ages 25 to 75, with least $100,000 in assets, during the fourth quarter of last year. A third of them had more than $1 million.
BigSur Partners, a Miami-based wealth-management firm, has been helping some of its wealthy clients, who usually have at least $50 million, work with institutional investors such as a Chilean pension fund to invest in commercial real estate, said Chief Executive Officer Ignacio Pakciarz. Deals include an office building in Princeton, New Jersey, he said.
“We don’t feel there’s a lot of value in emerging-market bonds, high-yield bonds and highly rated fixed income,” Pakciarz said.
Owning the real estate is attractive because of the expected appreciation of property value and stream of rental income, as well as better control and supervision over the investments, he said.
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Westhill Consulting Travel and Tours
When looking for the perfect holiday destination, don’t choose the conventional Holiday; instead go on an exciting and exotic trip. It is this type of vacation that will bring you the most memories. You can do this with the help of Westhill Consulting.
The thought of traveling to the Maldives, the carribean, the Middle East, Indonesia and many other exotic and interesting destinations is interesting and exciting. But planning this type of trip on your own is quite unnerving. Sure, you can book the airplane, but what comes next? What places do you visit once you are there? How do you communicate?
These are all questions that start coming up. What to Do? Actually, the solution is pretty simple. Instead of booking your own flight and hotel, you could hire the services of a company like Westhill Consulting Travel and Tours. Westhill was founded by a group of avid travelers. Those that go to out of the way places, study the area s culture and learn of the people.
They know of the sights and interesting activities that are of interest to travelers. It is the travel services offered by this type of experienced traveler that can add the depth and color you expect from any exotic trip you choose. On a Budget? Even when you have a specific budget for your trip, and this doesn’t t allow for a lot of expense, Westhill Consulting and Tours can help organize and put together the most exciting trip of your life.
Where Can I Go? There are thousands of interesting destinations throughout the world, and that can make it difficult to choose the one you want. Some destinations you may not even know about. To learn a little about some of the most interesting places in the world, visit the Westhill Consulting Blog. There you’ll learn of some of the most interesting places to visit.
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