Group of Seven (G7) Summit to phase out fossil fuels

Group of Seven (G7) Summit to phase out fossil fuels

Why in news?

G7 sets renewables target, however, no timeline for fossil fuel phase out.

What are the key proposals of the meeting?

• Energy transition – G7 collectively decided to increase offshore wind capacity by 150 gigawatts and add solar capacity of over 1 terawatt.
• Fossils fuels – To ‘accelerate the phase out of’ unabated fossil fuels but failed to share a timeline for the phase out, including for unabated domestic coal.
• To ‘fully or predominantly’ decarbonize power sector by 2035.
• To eliminate inefficient fossil fuel subsidies by 2025 or sooner.
• Critical minerals – To resolve vulnerabilities and diversify the source of these critical minerals.
• Climate finance – Committed to work on the decisions agreed upon at COP27 to establish new funding arrangements, including a fund to assist developing countries.
• To accelerate efforts for financing adaptation.
• Carbon markets – ‘Principles of High-Integrity Carbon Markets’ have been proposed to ensure high-integrity carbon markets.
• Industrial decarbonisation – Recognised the risk of carbon leakage, where companies simply move their operations to countries with less stringent climate policies.
• Pledge to end new plastic pollution by 2040.

Why the meeting is not constructive?

• Fossil Fuels – While G7 ministers recognised the need to scale up renewable energy, their commitment to phase out of fossil fuels is frivolous and full of loopholes.
• Rich countries – They are shirking their responsibility to provide adequate finance to help poorer nations adapt to and recover from the losses and damages caused by climate disasters.
• The energy-transition ambition is not equally shared among the members.
• Japan – It has been an outlier because of its reluctance to phase out fossil fuels and instead rely on carbon capture and the use of hydrogen in promoting low-carbon technologies.
• Canada – While Canada pushed for stronger language on coal phase-out, the statement on fossil fuels was watered down due to Japan’s opposition.
• Overall, the commitments made on energy transitions, with targets being set for solar and wind capacity additions are more than what was initially expected.
• However, this may not be enough to keep the 1.5 degrees Celsius target achievable.

What are the challenges in phasing out fossil fuels?

• The past commitments to energy transition were not achieved.
• No timeline to eliminate the phase out of fossil fuels.
• Lack of consensus in deciding the alternate energy.
• Loopholes in policy measures to phase out fossil fuels.
• The energy-transition ambition is not equally shared among the members.
• Geopolitical concerns for critical mineral extraction from poor countries.
• Lack of comprehensive action plan on carbon leakage.
• Low-carbon technologies and renewable hydrogen were not given due importance.