G7: It’s time to transition from fossil fuels to clean energy
As they meet in Hiroshima, G7 governments have a unique opportunity to course-correct toward a safer, healthier and more prosperous future.
The science is clear. To protect people, businesses and economies from the worst impacts of climate change, G7 leaders must lead boldly to accelerate the just transition away from fossil fuels, and toward a clean energy system. It is the only way to achieve a 1.5°C future.
Bold leadership from G7 governments can send clear signals to business on the speed and direction of travel, remove barriers to uptake, and unleash private sector investment into renewables, electrification and energy efficiency. The right government policies can ensure that the transition away from fossil fuels is equitable and supports communities and workforces around the world.
Business urges governments to commit at the G7 Summit to a rapid and just transition away from fossil fuels in line with a 1.5°C pathway and toward a clean energy system led by energy efficiency, electrification and the deployment of renewable energy.
Including the phase out of domestic coal-fired power generation by 2030 at the latest, along with supporting phase out in other OECD and non-OECD economies by 2030 and 2040, respectively.
Rapidly scale up renewables
Rapidly scale up reneweable energy power generation, access and infrastructure. This should include streamlining permitting processes to facilitate the roll-out of new renewable energy projects and improving grid and charging infrastructure.
Commit to 100% sales of ZEVs by 2035
Commit to 100% sales of zero emission vehicles (ZEVs) for new light duty vehicles by 2035.
Act to eliminate fossil fuel subsidies by 2025
Communicate this year the national action plans that demonstrate delivery of the 2016 G7 commitment to eliminate fossil fuel subsidies by 2025. This should include plans to repurpose spending toward energy efficiency, renewable energy and other measures to support a people-centered and equitable clean energy transition.
Tackling climate change is vital for delivering sustainable economic growth over the long-term. Prioritizing cleaner sources of energy helps achieve this. For businesses, switching to renewable energy can provide better price stability, improve business performance and significantly reduce greenhouse gas emissions. We are playing our part and in Japan, Nestlé will transition to 100% purchased renewable electricity in all factories by the end 2023 as part of our global net zero roadmap.
President and CEO, Nestlé Japan Ltd.
Transforming our global energy system to run entirely on renewable energy is the strongest lever we have for combatting climate change. There must be an immediate focus on electrifying as many sectors as possible through renewables – followed by scaling the solutions to tackle the hard-to-electrify sectors.
Senior Vice President, Global Stakeholder Relations, Ørsted
We encourage G7 governments to support the deployment of all the technologies that are already available now to accelerate energy efficiency through digitization, electrification and clean energy... We have to act immediately. It’s no longer a question of destination, but of speed and scale.
Chief Strategy and Sustainability Officer, Schneider Electric
As G7 leaders prepare to meet in Japan, it’s critical that they’re able to demonstrate how they will deliver on their commitment to eliminate fossil fuel subsidies by 2025, phase out domestic coal-fired power generation by 2030, and fully decarbonize power systems by 2035. At BT Group, we’re already using 100% renewable electricity and we’re working hard to reduce our own emissions. To help us go even further, we and the companies in our value chain need greater access to renewables across all G7 nations and beyond.
Sustainability Director, BT Group
Alongside the We Mean Business Coalition, Volvo Cars calls on G7 leaders ahead of their series of meetings in Japan to accelerate the transition to a clean energy system, as well as commit to 100% sales of zero-emission tailpipe vehicles by 2035. In addition, we call on them to end fossil fuel subsidies, decarbonise national power systems by 2035 and phase out domestic coal plants by 2030. These important steps will not only help increase industrial competitiveness, but are also urgently needed in this critical decade for humanity and our planet.
President & CEO, Volvo Cars
People and economies will benefit
Transitioning to a global clean energy system led by renewables, electrification and energy efficiency is an effective way for G7 governments to boost energy security, industrial competitiveness, economic growth and public health.
Ending our global reliance on fossil fuels will reduce our exposure to unmanageable risks such as extreme weather, war, rising inflation and human suffering. It is smart risk management and sound economics.
Climate change already costs billions today and is expected to reduce global GDP by as much as 14%, or $23 trillion, by 2050.
Clean energy investments could boost global GDP by 4% by 2030.
The Inflation Reduction Act’s climate change and clean energy investments could bring up to $278 billion in electricity cost savings and 9 million jobs over the next decade.
In a net-zero-by-2050 economic scenario, there are 2.2 million fewer premature deaths per year by 2030, a 40% reduction from today.
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The solutions are already available
Many of the clean energy solutions we need to transition away from fossil fuels are already available, reaching tipping points of mass adoption and declining in cost. Renewables are more cost-effective, reliable and secure.
Further investment in fossil fuels, including LNG, undermines energy security, economic health and decarbonization goals.
The price of lithium-ion batteries has fallen by 90% over the last 10 years. Electric vehicles (EVs) are increasingly cost-competitive with internal combustion vehicles.
More than one-sixth of global gas demand is for heating in buildings. Heat pumps reduce reliance on fossil fuels in buildings and light-industry, and they save consumers money and protect them from price shocks. Unsubsidized heat pumps are already cost-competitive with gas boilers in the U.S., Canada, Japan, Italy and China.
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With the right policy, business can go faster
Businesses are working to decarbonize their operations and supply chains. They are switching to 100% renewable electricity and EVs, helping suppliers decarbonize, and increasing demand for zero-carbon materials and products across industry, buildings and transport.
The right G7 policies and investments can help businesses transition to clean energy faster. Clear targets, timelines and policies will give business the clarity and confidence to act.
More than 10,000 companieswith a combined $38 trillion market cap are taking action on climate change through the We Mean Business Coalition partners initiatives, such as the Science Based Targets initiative, SME Climate Hub, RE100, EV100 and EP100.
Almost 400 companies are working toward reaching 100% renewable electricity by 2050 at the latest, and increasing global demand, through RE100.
To date, EP100 companies have collectively saved almost $1.2 billion USD and 1,100 TWh, which is equal to the annual electricity consumption of Brazil and Canada combined.