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.
Advertisement
“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.
Please use Chrome browser for a more accessible video player
Residents flee Greek island engulfed in flames
Please use Chrome browser for a more accessible video player
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.
Please use Chrome browser for a more accessible video player
Floodwater surges through Chinese subway
Please use Chrome browser for a more accessible video player
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”.
Please use Chrome browser for a more accessible video player
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.”
Arjun Sethi, the co-CEO of major crypto exchange Kraken, criticized the United Kingdom’s crypto regulations, which he believes hinder services for their customers.
In an interview with the Financial Times, Sethi said that “in the UK today, if you go to any crypto website, including Kraken’s, you see the equivalent to a cigarette box.” He suggested that the disclaimers have a significant impact on customer experience.
Sethi suggested that disclosures slow users down and that, because of the importance of speed in crypto trading, “it’s worse for customers.” He concluded that “disclosures are important […] but if there are 14 steps, it’s worse.”
The UK Financial Conduct Authority’s (FCA) updated financial promotion regime came into force in October 2023. It introduced a “cooling-off” period for first-time crypto investors and requires firms to assess whether users have sufficient knowledge and experience before trading.
Sethi said that the rules may prompt customers to avoid investing in crypto altogether, potentially leading to missed potential gains. The FCA defended the rules, noting that “some consumers may make an informed decision that investing in crypto is not right for them — that is our rules working as intended.”
Example of disclaimer from the Kraken website. Source: Kraken
Despite frustrations with the FCA, the UK appears to be moving toward a broader alignment with the United States on digital-asset oversight.
Lisa Cameron, a former United Kingdom Member of Parliament and founder of the UK-US Crypto Alliance, said she believes a joint “sandbox” between the UK and the US is in development to align their crypto markets.
She came to this conclusion after discussion with US Senators and regulators and expects the sandbox’s purpose to be to “iron out some of this in terms of passporting” for crypto licenses between the UK and the US.
On Monday, the Bank of England published a consultation paper proposing a regulatory framework for stablecoins. The new legislation is focused on sterling-denominated “systemic stablecoins” widely used in payments, similar to the US’s GENIUS Act.
A crypto collaboration between the UK and the US is not a new phenomenon. September reports noted that treasury authorities in the US and UK created a transatlantic task force to explore “short-to-medium term collaboration on digital assets.” Also in September, UK Chancellor Rachel Reeves and US Treasury Secretary Scott Bessent discussed how the two nations could strengthen their coordination on crypto.
September also saw UK trade groups urge the UK government to include blockchain technology in a technology collaboration with the US program known as “Tech Bridge.” A joint letter by the organization warned that “excluding digital assets from the UK-US Tech Bridge would be a missed opportunity,” and that it “risks leaving Britain on the sidelines.”
Japan’s first domestic stablecoin issuer said digital asset companies may soon become significant players in the country’s sovereign debt market, potentially reshaping monetary policy.
JPYC, the Tokyo-based company behind Japan’s first yen-pegged stablecoin, said issuers may evolve into major buyers of Japanese government bonds (JGBs) as their reserves increase.
In comments reported by Reuters, JPYC founder and CEO Noritaka Okabe said stablecoin reserves could fill the gap left by the Bank of Japan (BOJ) as it slows its bond purchases.
The Tokyo-based startup started issuing its yen-backed token, also dubbed JPYC, on Oct. 27, under the country’s revised Payment Services Act, its first legal framework for stablecoins. The company has issued about $930,000 worth of tokens to date and aims to reach a circulation of $66 billion within the next three years.
The token is backed by a combination of bank deposits and JGBs and is fully convertible to yen. It’s also designed to move seamlessly across blockchain rails.
Stablecoin issuers as new bond buyers
Okabe said JPYC plans to invest 80% of its issuance proceeds in JGBs and keep the remaining 20% in bank savings, initially focusing on short-term securities. He added that the company may consider longer-term JGBs in the future as demand grows and the yields remain attractive.
This type of allocation could give stablecoin issuers a significant role in Japan’s debt market, where the BOJ still holds about half of the $7 trillion JGB market. As the central bank slows bond purchases, new buyers need to absorb the issuance.
Because of this, Okabe floated the idea that stablecoin reserves could naturally fill part of the vacuum, linking blockchain adoption to fiscal financing.
“The volumes of JGBs stablecoin issuers buy will be swayed by the balance of supply and demand for stablecoins,” he said, noting that this trend “will happen around the world” and that Japan will not be an exception.
Okabe’s comments came as stablecoins continue to see adoption in Japan’s traditional finance sector.
On Friday, the Financial Services Agency (FSA), the country’s financial regulator, endorsed a yen-pegged stablecoin project led by Japan’s biggest financial institutions.
The FSA announced the “Payment Innovation Project,” an initiative that involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The regulator said that the companies will begin issuing payment stablecoins this month.
As the crypto industry matures, pragmatism and common sense are slowly creeping into the idealistic, messy business of blockchain tech.
For years, crypto founders have declared that they’re reinventing the financial system. And although the focus has been on big ideas and innovative financial engineering, many crypto products and services remain off-limits to regulated organizations.
As banks, OTC desks, and institutional investors enter the space, they find the basic infrastructure of serious finance either missing, or lacking in the compliance tools that allow them to fully participate.
Telegram and X may be the preferred communication channels of the crypto native, but institutions need more than disposable messages, constant phishing attempts, and managing countless channels with eminently hackable addresses. JPMorgan was fined $200 million by regulators in 2021 for using these platforms and personal accounts, while scammers have become proficient at using them for thefts.
Crypto communications platforms are unfit for compliance
The Tie, a provider of institutional-class digital asset data, has set about solving the issue of secure crypto communication, integrating with systems such as Global Relay that are already used for back office compliance between financial players.
“We’ve been so busy addressing the huge pain points in the system that we sometimes forget about the basics,” said Josh Frank, CEO of The Tie. “Institutions don’t get to opt in to compliance, they don’t get to hope that the person they’re talking to in a Telegram chat is actually the person they say they are. They have rules, they have a duty to preserve, and existing comms channels in crypto were never built with those requirements in mind.”
According to Frank, the new messaging solution, Bridge, addresses all the needs of institutions looking to be part of the digital asset economy.
“There’s nothing wrong with WhatsApp or Telegram for most users so long as they’re careful, but for institutions we had to build a communication platform that doesn’t suck at compliance.”
Melvin Deng, CEO of QCP in Singapore, told Cointelegraph that “Every regulated institution operates under clear obligations – to know who they’re dealing with, to preserve records, and to ensure that communications are both compliant and auditable. In crypto, those basics have long been missing. A platform like Bridge restores that integrity. It brings the standards of institutional finance into a digital-native environment, where identity verification and compliant record-keeping aren’t afterthoughts but defaults.”
Starting with email domain verification, strict Know Your Business (KYB) rules and verified identities to eliminate bad actors, Bridge is designed to open up B2B messaging for industry participants across the globe.
Frank notes that managing teams across multiple communication channels has proven a huge headache for compliant organizations. “You have 50 channels to each of your counterparties,” he says, “And each one of those has to be depopulated and repopulated every time someone leaves your business. Every one is a potential liability, so we’ve built a solution that allows for centralized team management, including bulk reassignment of old team members’ channels including their history, straight to new members.”
An audit log for all blockchain transactions
Included in that history is automatic auditing of transactions between counterparties. “The platform maintains a complete log of transactions, and includes verified and timestamped notifications of completion, confirmations of arrival – the whole process is designed for compliance,” says Frank. “And that persists immutably at the organization level, so that individual users’ events feed directly into a main dataset tracking all transactions.”
He also notes that Bridge allows for privacy-focused access to The Tie’s data platform directly within the app, allowing users to search for contextual information using AI. “Imagine you’re traveling to Singapore for Token2049. You can ask Bridge to load custodians, OTC desks, and prime brokers based in Singapore that have raised money in the last two years, and have at least $10M in total funding. Then you can message those parties directly within the app.”
“You can also use the AI to access real-time market sentiment, or to discover developer statistics – essentially all of our institutional-grade data is available.”
Bridge launches in early 2026 as both a web and desktop app, as well as native iOS and Android apps, and Frank claims The Tie will offer the service at just $5 per month, per user.
“It’s designed to be a no-brainer,” he says. “If you operate in crypto, you need this, so the goal isn’t to put up more hurdles. It’s simply to make the space safer, welcome new participants, and keep building the tools that make this the backbone of tomorrow’s global financial system.”