Urgent action is needed to address climate change or the world will soon face “catastrophe”, the UK’s COP26 chief has warned.
With just 85 days until the climate conference in Glasgow, minister Alok Sharma told the Observer that failing to act would have “catastrophic” consequences.
“I don’t think there’s any other word for it,” said Mr Sharma, who is president of November’s talks.
“You’re seeing on a daily basis what is happening across the world. Last year was the hottest on record, the last decade the hottest decade on record.”
Mr Sharma’s comments come just days before the Intergovernmental Panel on Climate Change (IPCC), the world’s leading authority on climate science, publishes a report showing how close humanity is to the brink of a potentially irreversible disaster.
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“This is going to be the starkest warning yet that human behaviour is alarmingly accelerating global warming and this is why COP26 has to be the moment we get this right,” he said.
“We can’t afford to wait two years, five years, 10 years – this is the moment.
More on Cop26
“I don’t think we’re out of time but I think we’re getting dangerously close to when we might be out of time.
“We will see [from the IPCC] a very, very clear warning that unless we act now, we will, unfortunately, be out of time.”
Image: The UK’s climate minister Alok Sharma says global leaders must get it right at COP26 in November
The consequences of climate change have been evident in recent months, with extreme weather affecting several countries around the world.
Elsewhere, Greenville, a Gold Rush town in California, was flattened by fires – and 25 people died after unprecedented rainfall caused severe flooding in China.
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Residents flee Greek island engulfed in flames
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House swept along river in Germany floods
Mr Sharma said that climate change is about people’s lives and “comes down to the very real human impact this is having across the world”.
“I’ve visited communities that as a result of climate change have literally had to flee their homes and move because of a combination of drought and flooding,” he said.
Mr Sharma is tasked with persuading countries including China, India, Russia, Australia and Brazil to make concrete commitments and policies to cut emissions, while trying to persuade the UK, European Union and other wealthy nations to meet a pledge of £100bn a year in climate finance for the developing world.
He has been travelling to several countries to hold talks with key stakeholders ahead of COP26 in November.
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Floodwater surges through Chinese subway
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Wildfire leaves US town burned to ashes
But earlier this week he was criticised by green campaigners and the Labour Party, after it emerged that he had travelled to 30 countries this year – including seven on the red list – and did not self-isolate upon his return home because of a ministerial exemption.
Labour MP David Lammy said the reports of Mr Sharma flying tens of thousands of miles during a pandemic are “worrying” and demonstrate that “it is one rule for them, another for us”.
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Labour on Sharma travel: ‘One rule for them’
But Mr Sharma has defended his trips, saying that he was “throwing the kitchen sink” at efforts to reach a deal.
“I have every week a large number of virtual meetings, but I can tell you that having in-person meetings with individual ministers is incredibly vital and actually impactful,” he said.
“It makes a vital difference, to build those personal relationships which are going to be incredibly important as we look to build consensus.”
Analysis by Rob Powell, political correspondent
The stakes will be raised again this week when the IPCC lays out the practical impact climate change will have on the world.
But the political and diplomatic challenge for the UK government will be heightened as well, ahead of a crucial few months for Boris Johnson’s green agenda.
November’s COP26 summit is a key moment for the UK to show it can achieve meaningful international commitments on global warming.
Amid recent rumblings that the Glasgow conference could go off half-cock, Alok Sharma will hope his rabble-rousing warning – combined with a stark UN report due on Monday – will begin to focus minds around the world.
There are also domestic climate battle to be fought though.
September will see the government set out how the UK will lead by example and reach net zero by 2050.
That is already causing some political friction with voices within the Conservative Party worried at how much a shift to a greener way of living will cost the taxpayer.
Mr Sharma also told the newspaper that the UK could carry on fossil fuel projects, after criticism over plans to license new oil and gas fields.
Green campaigners have warned that the UK is losing credibility on a world stage after ministers supported the new Cambo oilfield and other North Sea exploration licences were opened earlier this year.
The decisions were made despite warnings from the International Energy Agency, a global energy watchdog, in May that new fossil fuel exploration must cease this year.
But Mr Sharma said new fossil fuel licenses will have climate checks.
He said: “Future [fossil fuel] licences are going to have to adhere to the fact we have committed to go to net-zero by 2050 in legislation. There will be a climate check on any licences.”
Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.
He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”
Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.
“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.
Gensler’s record and industry backlash
Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.
The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.
Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg
Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.
The politicization of crypto
Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.
“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”
He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.
On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”
He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.
Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.
Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.
New figures reveal a 70% year-on-year increase in Cayman Islands foundation company registrations, with more than 1,300 on the books at the end of 2024, and over 400 new registrations already in 2025.
According to a news release from Cayman Finance, many of the world’s largest Web3 projects are now registered in the Cayman Islands, including at least 17 foundation companies with treasuries over $100 million.
Why DAOs are choosing Cayman
The Cayman foundation company has emerged as a preferred tool for DAOs that need to sign contracts, hire contributors, hold IP and interact with regulators, all while shielding tokenholders from personal liability for the DAO’s obligations.
The legal wake‑up call for many communities came in 2024 with Samuels v. Lido DAO, in which a US federal judge found that an unwrapped DAO could be treated as a general partnership under California law, exposing participants to personal liability.
The Cayman foundation company is designed to plug that gap, offering a separate legal personality and the ability to own assets and sign agreements, while giving tokenholders assurance that they are not partners by default.
Rise in Cayman Islands foundation company registrations | Source: Cayman Finance
Add tax neutrality, a legal framework familiar to institutional allocators and an ecosystem of companies that specialize in Web3 treasuries, and it becomes clear why more projects have quietly redomiciled their foundations to Grand Cayman.
Elsewhere, policymakers have made big promises but delivered patchwork. US President Donald Trump has repeatedly pledged to turn the United States into the “crypto capital of the planet,” but at the entity level, only a handful of states explicitly recognize DAOs as legal persons.
Switzerland remains the archetypal onshore Web3 foundation center, with the Crypto Valley region now hosting over 1,700 active blockchain firms, up more than 130% since 2020, with foundations and associations representing a growing share of new structures.
The surge in Web3 foundations coincides with a shift in Cayman’s own regulatory posture — the arrival of the Organisation for Economic Co-operation and Development’s Crypto‑Asset Reporting Framework (CARF), which the Cayman Islands has now implemented via new Tax Information Authority regulations that take effect from Jan. 1, 2026.
CARF will impose due diligence and reporting duties on Cayman “Reporting Crypto‑Asset Service Providers” (entities that exchange crypto for fiat or other crypto, operate trading platforms or provide custodial services), requiring them to collect tax‑residence data from users, track relevant transactions and file annual reports with the Tax Information Authority.
Legal professionals note that CARF reporting under the current interpretation applies to relevant crypto-asset service providers, including exchanges, brokers and dealers, which likely leaves structures that merely hold crypto assets, such as protocol treasuries, investment funds, or passive foundations, off the hook.
“The key question is whether your entity, as a business, provides a service effectuating exchange transactions for or on behalf of customers, including by acting as a counterparty or intermediary or by making available a trading platform.”
In practice, that means many pure treasury or ecosystem‑steward foundations should be able to continue benefitting from Cayman’s legal certainty and tax neutrality without being dragged into full reporting status, so long as they are not in the business of running exchange, brokerage or custody services.
Chancellor Rachel Reeves has suffered another budget blow with a rebellion by rural Labour MPs over inheritance tax on farmers.
Speaking during the final day of the Commons debate on the budget, Labour backbenchers demanded a U-turn on the controversial proposals.
Plans to introduce a 20% tax on farm estates worth more than £1m from April have drawn protesters to London in their tens of thousands, with many fearing huge tax bills that would force small farms to sell up for good.
Image: Farmers have staged numerous protests against the tax in Westminster. Pic: PA
MPs voted on the so-called “family farms tax” just after 8pm on Tuesday, with dozens of Labour MPs appearing to have abstained, and one backbencher – borders MP Markus Campbell-Savours – voting against, alongside Conservative members.
In the vote, the fifth out of seven at the end of the budget debate, Labour’s vote slumped from 371 in the first vote on tax changes, down by 44 votes to 327.
‘Time to stand up for farmers’
The mini-mutiny followed a plea to Labour MPs from the National Farmers Union to abstain.
“To Labour MPs: We ask you to abstain on Budget Resolution 50,” the NFU urged.
“With your help, we can show the government there is still time to get it right on the family farm tax. A policy with such cruel human costs demands change. Now is the time to stand up for the farmers you represent.”
After the vote, NFU president Tom Bradshaw said: “The MPs who have shown their support are the rural representatives of the Labour Party. They represent the working people of the countryside and have spoken up on behalf of their constituents.
“It is vital that the chancellor and prime minister listen to the clear message they have delivered this evening. The next step in the fight against the family farm tax is removing the impact of this unjust and unfair policy on the most vulnerable members of our community.”
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1:54
Farmers defy police ban in budget day protest in Westminster.
The government comfortably won the vote by 327-182, a majority of 145. But the mini-mutiny served notice to the chancellor and Sir Keir Starmer that newly elected Labour MPs from the shires are prepared to rebel.
Speaking in the debate earlier, Mr Campbell-Savours said: “There remain deep concerns about the proposed changes to agricultural property relief (APR).
“Changes which leave many, not least elderly farmers, yet to make arrangements to transfer assets, devastated at the impact on their family farms.”
Samantha Niblett, Labour MP for South Derbyshire abstained after telling MPs: “I do plead with the government to look again at APR inheritance tax.
“Most farmers are not wealthy land barons, they live hand to mouth on tiny, sometimes non-existent profit margins. Many were explicitly advised not to hand over their farm to children, (but) now face enormous, unexpected tax bills.
“We must acknowledge a difficult truth: we have lost the trust of our farmers, and they deserve our utmost respect, our honesty and our unwavering support.”
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2:54
UK ‘criminally’ unprepared to feed itself in crisis, says farmers’ union.
Labour MPs from rural constituencies who did not vote included Tonia Antoniazzi (Gower), Julia Buckley (Shrewsbury), Jonathan Davies (Mid Derbyshire), Maya Ellis (Ribble Valley), and Anna Gelderd (South East Cornwall), Ben Goldsborough (South Norfolk), Alison Hume (Scarborough and Whitby), Terry Jermy (South West Norfolk), Jayne Kirkham (Truro and Falmouth), Noah Law (St Austell and Newquay), Perran Moon, (Camborne and Redruth), Samantha Niblett (South Derbyshire), Jenny Riddell-Carpenter (Suffolk Coastal), Henry Tufnell (Mid and South Pembrokeshire), John Whitby (Derbyshire Dales) and Steve Witherden (Montgomeryshire and Glyndwr).