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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.

“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.”

COP26 president Alok Sharma says 'if we do not take this chance to keep 1.5 degrees alive, it will slip from our grasp'.
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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.

In the last month, wildfires have ravaged through southern Europe – forcing thousands from their homes across Greece, Turkey and Italy – and other countries on the continent, notably Germany and Belgium, have experienced devastating flooding.

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.

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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.”

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Kraken co-CEO warns UK rules meant to protect users now punish them: FT

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Kraken co-CEO warns UK rules meant to protect users now punish them: FT

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.”

Kraken, UK Government, Cryptocurrency Exchange, United Kingdom
Example of disclaimer from the Kraken website. Source: Kraken

Related: ClearToken gets FCA nod for crypto settlement platform amid UK rules push

The UK is slowly opening to crypto

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.

Related: British crypto firm KR1 eyes London Stock Exchange as UK warms to industry: FT

UK looks to the US for an example on crypto

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.”

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