G7 missed opportunity on climate action and investment ‘frustrating’
Andrew Prag, Managing Director of Policy
In response to the G7 final communique, business climate action non-profit We Mean Business Coalition labels the outcome ‘frustrating’ and suggests the Group of world leaders missed an opportunity to lead at a pivotal time for global politics and in the face of raging climate change.
Andrew Prag, Managing Director of Policy, We Mean Business Coalition said: “This is a frustrating outcome. Faced with electoral uncertainty in many G7 countries, leaders chose to stick to lines reached by their energy and finance ministers earlier this year. But the fact is, decisive leadership on climate action and transitioning away from fossil fuels is a route to making economies more energy secure, more competitive and creating new sources of growth and jobs. This is a missed opportunity even at a time of uncertain politics.”
Topline analysis
G7 leaders have reaffirmed the progress made by their energy and climate ministers but have failed to assert their global leadership in tackling climate change and intention to get ahead in the race to competitive clean economies.
Positives from the communique
The renewed commitment for 1.5C aligned NDCs is welcome – noting that no timeline is provided, and reiterating that it is urgent for G7 leaders to now actually deliver on NDCs which are not only sufficiently ambitious but also send a clear signal that they will lead to strong and clear policy.
Renewal of the Dubai commitment to transition away from fossil fuels this decade is also welcome, including reiterating language from the energy ministerial about making “intense efforts to reduce demand for and use of fossil fuels”.
Strongly welcome the new energy storage goal especially for its importance in delivering on the Dubai commitments of tripling renewables and doubling energy efficiency. But lacking firm national commitments to deliver.
Welcome the Leaders recognition of the importance of mobilising finance for nature as well as climate change specifically, including reiterating previous commitment to increase nature financing by 2025. Regret the lack of concrete measures and proposals to demonstrate leadership in delivering on these commitments.
Welcome the leaders specifically calling out the importance of high-quality carbon markets to drive investment and foster innovation
Tentatively welcome the restatement of the objective to see elimination of inefficient fossil fuel subsidies by 2025, but business now expects to see urgent and clear action on this in the coming months given how soon that deadline is. Business sees great opportunities to reallocate FFS funds to clean energy and energy efficiency support.
Disappointments from the communique
Absence of any commitments on the supply side of fossil fuels is disappointing, and the message is further muddied by the commitment to allow investment in LNG for energy security purposes. No bringing forward of the coal phase-out date of “the first half of 2030s”.