We Mean Business Coalition statement on the outcome of the G7 Summit 2023Gillian Nelson, Policy Director, We Mean Business Coalition
Building on what G7 Climate and Energy Ministers agreed in April, at the G7 Summit in Hiroshima, Leaders have backed the phase-out of fossil fuels in line with 1.5ºC trajectories, coupled with a rapid scaling of clean energy. This is good news for companies committed to the global clean energy transition, and needs to now be translated into national policies that inform diplomatic priorities and investments. In this vein, the Clean Energy and Economy Action Plan signals clear intent from the G7 to bolster global collaboration on the clean energy transition, which will help companies and industries decarbonize their supply chains. It is simply smart risk management and sound economics.
The G7 Leaders’ reference to the ‘important role’ of increased LNG deliveries in the context of the war in Ukraine brings inconsistency with the G7 Energy Ministers’ statement last month. This will only delay action, investment and progress toward a global clean energy system that is safer, more stable and healthier for everyone. With further investment in fossil fuels, the Leaders would risk missing out on the rapidly accelerating competitive edge of clean energy, and the wide range of associated benefits for people, businesses and economies.
To keep 1.5ºC within reach, Leaders should heed the counsel of their Energy Ministers, who described an acceleration of the clean energy transition and reduction in gas demand as primary needs. Markets and well-informed businesses know this, and the clean energy transition will continue to accelerate, but governments must cease the mixed messages and put in place clear, consistent domestic policies to support decarbonization across industries and put us on track for limiting global warming to 1.5ºC.