Energy and climate ministers of the G7 group commit to electricity sector decarbonisation and eliminating fossil fuel subsidies.
On 26–27 May 2022, the Group of Seven (G7) ministers of advanced economies met at Germany’s G7 Climate, Energy, and Environment Ministerial press conference. The countries that constitute the G7 include Italy, Japan, Canada, France, Germany the United Kingdom (UK) and the United States (U.S.). In addition, the European Union (EU) is a ‘non-enumerated member’.
After the two-day meeting in Berlin, the G7 ministers issued an official bulletin (communiqué) setting out the steps needed to tackle “the triple global crisis of climate change, biodiversity loss, and pollution”.
The G7 ministers acknowledged the International Energy Agency’s (IEA’s) recent landmark report concerning the policy implementation required for lowering CO2 emissions generated by heavy industries in G7 countries and beyond. The IEA is an international energy forum that works with countries from across the globe to secure a stable, sustainable energy future for all of humanity. The ministers took the opportunity to reaffirm commitments made in light of the historic Paris Agreement and expand upon previously devised Nationally Determined Contributions (NDCs) to advance their net-zero goals and speed up the green energy transition.
Russia’s war of aggression on Ukraine has caused severe social and economical problems, which have spurred the need for improved supply chain resiliency for food, energy, and critical enabling technologies such as semiconductor chips.
We welcome the timely 10-Point Plans put forward by the International Energy Agency. We acknowledge that the European Commission has published its REPower EU Plan to phase out dependency on Russian fossil fuels as soon as possible.
The IEA’s 10-Point Plan to Cut Oil Use proposes ten actions for reducing oil demand and provides recommendations for stabilising demand in the long term. The IEA’s 10-Point Plan concerning the import of Russian gas is another step towards reducing the EU’s reliance on Russian fuel imports whilst enhancing the resilience of the EU gas network.
Supporting the green energy transition
Before the ministerial conference, an open letter signed by 126 businesses and 27 business networks, was sent to Commission President Ursula von der Leyen. Industry leaders detailed their support of the EU’s 10-Point Plan initiatives and urged the EU to continue along its path toward reducing emissions to meet the Paris Agreement’s 1.5°C target.
At the core of the current energy security and price crises sits an overdependence on volatile, imported fossil gas, oil and coal. It is time for all of us to take the necessary steps to strengthen Europe’s energy security and resilience by accelerating the green transition.
Within the letter, business leaders provided a set of recommendations for consideration:
- To accelerate measures to reduce energy consumption.
- To accelerate the transition from fossil-fuel based to renewable energy-powered electrification.
- To ensure an inclusive and fair transition process.
The letter came ahead of a comprehensive policy package, the REPowerEU, which promises to reduce Russian fossil fuel reliance and accelerate the green transition.
In an open letter brought forward by the We Mean Business Coalition, more than 7,000 businesses jointly called on the G7 to up their game concerning fossil-fuel phase out and clean power generation. The Coalition comprises non-profit organisations (BSR, CDP, Ceres, CLG Europe, Climate Group, The B Team and WBCSD) that work with businesses to take action on climate change.
The letter provided recommendations, urging the G7 ministers to:
- Strengthen their Nationally Determined Contributions (NDC)Commit to fully decarbonising power systems by 2030
- Phase out domestic coal-fired power generation by 2030
- Aim to achieve 70% of renewable power generation by 2030
- Commit to 100% sales of zero emissions vehicles (ZEVs) by 2035.
Other recommendations include increasing public spending for energy efficiency and outlining national action plans in 2022 to eliminate all fossil fuel subsidies by 2025.
G7 response
The G7 ministers announced their commitment to stepping up the implementation of Nature-based Solutions (NbS), saying that they will integrate them into the deployment of NDCs and other sustainable development strategies. According to the International Union for Conservation of Nature (IUCN), NbS are actions that serve to protect, sustainably manage, and restore natural and modified ecosystems. These actions address socio-environmental challenges such as human health and biodiversity loss.
The G7 ministers also committed to achieving predominantly decarbonised electricity sectors by 2035. The ministers endeavour to eventually phase-out coal power generation.
In addition, the ministers reaffirmed their commitment to eliminate inefficient fossil fuel subsidies by 2025 and urged other countries to push forward in their progress ahead of COP27.
