G7 must lead rapid and just transition away from fossil fuels for economic stabilityMichelle Scrimgeour, CEO at Legal & General Investment Management
The companies we work with need access to renewable power across our value chains. By scaling up clean energy this decade, the G7 leaders can help us achieve our global climate goals faster and stimulate even greater action. We urge them to steer us towards a clean global energy system and prioritising how we focus on increasing energy efficiency and renewable energy.
Ahead of next week’s G7 Summit we shared our response to the FT article in the below letter:
17th June 2022
Letter to FT editor
Re: Germany fires up coal plants to avert gas shortage as Russia cuts supply
The war in Ukraine has exposed the vulnerability of our societies to the dependence on fossil fuels.
Meanwhile, on climate, the science is clear: we need rapid reductions in greenhouse gas emissions and if we act now, we have solutions across sectors to at least halve emissions by 2030.
Decisions taken in the next few weeks will determine our future energy security and the state of the climate that generations will inherit.
Along with 1000+ companies through the We Mean Business Coalition, we urge the G7 to lead a rapid and just transition away from fossil fuels to create a more stable global economy where companies and the people we employ and serve, can thrive.
Climate plans from all nations must therefore be aligned with limiting global temperature rise to 1.5ºC.
The challenges we face from climate change are global and yet also threaten each nation’s security. That’s why action at home is essential alongside international cooperation and unprecedented collaboration between public and private sectors and financial support both within and beyond the G7.
To achieve our climate goals, we urge the G7 to fully decarbonize their nations’ power systems by 2035.
Companies like ours need widespread access to renewable power. By significantly increasing deployment of clean energy this decade, the G7 can help us achieve our global climate goals faster and stimulate even greater action.
The G7 heads of state can steer us towards a clean global energy system by eliminating fossil fuel subsidies by 2025 and redirecting those funds towards increasing energy efficiency and renewable energy. Leaders can also give clarity to business on the future of transport across the G7 by ruling that from 2035, all new light duty vehicles sold are zero emissions and by delivering supporting infrastructure.
These policies will clearly signal to companies the need to transform our business models and scale up our own investments in the clean energy transition.
We stand ready to wholeheartedly support and work with political leaders committed to delivering a clean energy transition that is just, people-centred and supported by coherent public spending and investment decisions.
Michelle Scrimgeour, COP26 Business Leader Co-Chair and CEO of Legal & General Investment Management