G7 puts focus on push for global fossil fuel phase-out deal

A commitment by rich countries to accelerate the phase-out of fossil fuels has been welcomed as a possible step towards a global agreement for all countries to do the same.

However, the announcement by the Group of Seven (G7) has been criticized for not linking the promise to firm action.

G7 climate ministers agreed for the first time on Sunday to accelerate the phase-out of fossil fuel consumption that causes climate change, although they have not set a firm date for this.

In a joint statement at their meeting in Sapporo, Japan, ministers agreed “to accelerate the phase-out of unabated fossil fuels to achieve net zero in energy systems by 2050”.

“This is an important step forward after the failure of COP27 on this issue late last year,” said French Energy Transition Minister Agnès Pannier-Runacher.

During the COP27 climate summit of the United Nations last year, countries could not agree on an agreement on phasing out energy from fossil fuels. India’s proposal to do so received support from more than 80 governments, but was opposed by the oil and gas rich countries.

Some, including the 27-nation European Union, hope to revive the idea before this year’s UN climate summit, which begins in Dubai on November 30.

While not legally binding, the idea behind a global deal to phase out fossil fuels would be to create a powerful “north star” to guide future climate negotiations, government policies, and investments in clean energy and industries.

“If you could get a consensus decision that this is the direction of travel, that would be huge,” said Alden Meyer, a senior contributor at climate think tank E3G.

But Meyer, who has attended the UN climate negotiations since they began in 1991, warned of significant hurdles to meeting the pledge.

It took more than two decades of UN climate negotiations for countries to even mention fossil fuels in a statement at the summit – which was in 2021 – amid opposition from fossil fuel producing countries and industries.

Financial gap

Insufficient financial support from rich countries to help developing countries transition to clean energy could also weaken the influence of the G7 to get other countries on board with a commitment to eventually phase out oil and gas.

Rich countries have still failed to deliver on their pledge to provide $100 billion a year by 2020 to help poorer countries cut emissions and cope with climate change. That amount falls far short of their actual needs, but has come to symbolize the failure of rich countries to deliver promised climate funds.

Meyer said a meeting of G7 leaders next month could provide an opportunity to support their call for a fossil fuel phase-out with strong commitments to financially help developing countries transition.

“That could go a long way in smearing a political agreement on a managed transition away from fossil fuels,” he said.

The need to back the fossil fuel phase-out pledge with cash was reiterated by Gillian Nelson, policy director at the non-profit We Mean Business Coalition, which works with businesses and investors on climate action.

Nelson said G7 governments spend about $33 billion a year on fossil fuel subsidies that could be redirected to free up private money for clean energy.

“The most efficient way to ensure a smooth and just transition to a clean energy system is to redirect these subsidies now,” she said.

Stepping stones

Meetings that could be used to boost a fossil fuel commitment ahead of COP28 include a summit in June hosted by France aimed at scaling up funding for developing countries, and a G20 leaders meeting in September hosted by India – author of the proposal at last year’s climate conference. top to phase out fossil fuels.

Egyptian Foreign Minister Sameh Shoukry, who chaired last year’s UN climate summit, has said consultations will continue ahead of COP28 on whether or not to call for a phase-out of fossil fuels.

“I think there is a general recognition of the importance of reducing dependence on fossil fuels,” Shoukry said last month after a meeting of ministers in Copenhagen that included incoming United States COP28 top president Sultan Al-Jaber. Arab Emirates attended.

Pushing through a deal on phasing out fossil fuels would depend on political support from the UAE – including among other oil and gas-producing countries such as Saudi Arabia, which opposed the proposal at last year’s summit, said Luca Bergamaschi , co-founder of Italian Climate think tank ECCO.

But Bergamaschi said broad support is unlikely to be garnered without the G7 — as the most developed economies need to provide a map for developing countries to reach the goal by providing financial support and scaling up clean energy.

“Where the G7 should show a lot more leadership is how you are going to do that in practice,” he said.