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The Guardian view on the UAE quitting Opec: whatever importers pay, the price of fossil fuels is too high | Editorial
The world must accelerate the shift to renewables, regardless of the economic effects of Abu Dhabi’s decisionOpec appears to be the latest casualty of the Iran war. On Tuesday, the United Arab Emirates announced that it was leaving the oil cartel after 60 years. The loss of a critical member is a blow to the group and its de facto leader, Saudi Arabia, in the midst of the biggest supply crisis in history.This is a geopolitical decision, not merely an economic one. The UAE has built itself into an increasingly interventionist and unilaterally minded power, not only challenging Riyadh’s dominance but undermining its more cautious approach to regional affairs. The rift has become increasingly public and bitter – with Saudi Arabia bombing what it called a UAE-linked arms shipment in Yemen in December. Abu Dhabi, as the main target of Iranian strikes among the Gulf countries, is also enraged by what it sees as a feeble regional response to the current conflict, and has been privately pushing for counterattacks. Continue reading...
Rachel Reeves’s plan to mandate how pension funds invest was always a mistake | Nils Pratley
You can understand the motivation – more UK investment by UK funds means faster UK growth – but fiduciary duty trumps allA simple principle lies at the heart of pension investment: the pension manager must invest in the best interest of the client. UK ministers have often wished UK funds would show more home bias by channelling more pensioners’ cash towards domestic assets in the interests of economic growth, but the fundamental rule of the game has always been understood. You don’t mess with the fiduciary duty.Thus, when Rachel Reeves a year ago unveiled her Mansion House accord – a pledge by 17 of the biggest providers to earmark a slice of workplace pensions for UK private assets – it was made clear the arrangement was voluntary. What’s more, as the signatories emphasised, the commitment was “subject to fiduciary duty and the consumer duty” and “dependent on implementation by the government and regulators of critical enablers”. Continue reading...
