The development ministers of the G7 countries met on a two-day meeting in Berlin to discuss the global crisis of Russia’s Ukraine invasion with an emphasis on energy security. The G7 ministers succeeded on agreeing to largely stop electricity generation with fossil fuels by 2035.
For the first time, G7 announced to end financing for international coal-fired power projects by the end of the year. Few exceptions include projects approved for national security and geostrategic interests. The financing ban, however, does not apply to what nations do at home.
G7 nations also agreed they need to speed up previous plans of phasing out coal plants by 2035.
The joint communique they consent to states they “further commit to a goal of achieving predominantly decarbonized electricity sectors by 2035,” which included “concrete and timely steps towards the goal of an eventual phase-out of domestic unabated coal power generation.”
They will raise their ambitions with regard to renewable energy as a source to replace coal power generation.
Another first is G7 acknowledging that fossil fuel subsidies are incompatible with the goals of the 2015 Paris Agreement on climate change. They plan to replace Russian natural gas from the grid almost entirely with renewable energy. Further details have not been stated.
Additionally, G7 pledged to increase climate finance for developing countries by 2025. Rich countries committed again to generate at least $100 billion each year in climate financing to help poorer countries deal with the effects of climate change and boost clean energy generation. They have yet to remain true to that promise.
In another first, they also committed to securing a highly decarbonized transport sector by 2030 by increasing the use of zero-emission vehicles and pledged to decarbonize industry – particularly within the steel and cement sector. Ministers said they would also boost cooperation on green hydrogen projects.
“The G-7 committing to end public finance for fossil fuels and shift it to clean is a massive win… We now need concrete action, not just words,” said Bronwen Tucker, public finance campaign co-manager at Oil Change International.