The Group of Seven (G7) recently published the Climate, Energy and Environment Ministers’ Meeting Communiqué following the G7 Ministers’ Meeting on Climate, Energy and Environment held last week in Turin, Italy. This marked the first meeting of G7 climate, energy and environment ministers (the Ministers) since COP28 last November and included renewed commitments on strengthening energy security, greenhouse gas (GHG) emission reduction, limiting global temperature increases to 1.5°C, and the imperative of transitioning to cleaner energy sources for economic growth and climate resilience. We view the Ministers’ renewed dedication to energy transition as the meeting’s most significant outcome, although it is important to note that countries heavily reliant on coal maintain some degree of flexibility.
This bulletin briefly highlights key commitments made by the Ministers.
Carbon Markets. Key carbon market commitments include:
- work jointly towards delivering robust outcomes from the Work Programme on Article 6 at COP29 in Baku, Azerbaijan later this year;
- explore innovative options for carbon markets and carbon pricing to contribute to mobilizing public and private contributions to climate finance; and
- enhance demand and robust certification standards for carbon dioxide removals.
Energy. Key energy commitments include:
- phase out existing unabated coal power generation in energy systems during the first half of 2030s or in a timeline consistent with keeping a limit of 1.5°C temperature rise within reach, in line with national net-zero pathways;
- setting a global target of reaching 1,500 GW of energy storage in the electricity sector by 2030, six times more than in 2022;
- reduce demand for and use of fossil fuels, including by rapidly scaling-up clean technologies in power generation, transportation and other end users; and
- phase out inefficient fossil fuel subsidies, with all countries committing to a progress report in 2025, when Canada will have the Presidency of the G7 (read our earlier bulletin on Canada’s inefficient fossil fuel Assessment Framework here).
GHG Emission Reductions. Key GHG emission reduction commitments include:
- adopt policy measures to drive demand for low and near zero-emission materials, such as low and near zero-emission steel, cement, concrete, chemicals, aluminium, glass and renewable and low-carbon fuels;
- advance projects to significantly scale-up carbon management and strive for best practice in CCUS projects including ensuring the vast majority of emissions are captured;
- pursue collective effort towards a 75% reduction in global methane emissions from fossil fuels, including by reducing methane emissions intensity of oil and gas operations by 2030;
- accelerate methane measures in line with the global reduction level of at least 35% in methane emissions by 2035;
- reaffirm the commitment to the implementation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) with an emphasis on the program’s environmental integrity; and
- urgent global action through the International Maritime Organization to accelerate the uptake of zero or near-zero GHG emission technologies, fuels and/or energy sources to represent at least 5% – while striving for 10% – of the energy used by international shipping by 2030.
Electric Vehicles. Key electric vehicle and infrastructure commitments include:
- accelerate fleet turnover in a Paris-aligned trajectory through economic policy measures to support consumers and companies; and
- promote public charging infrastructure growth including sectorial regulatory measures and public financial supports.
Critical Minerals. Key critical minerals commitments include:
- accelerate the implementation of the International Energy Agency’s voluntary Critical Minerals Security Programme;
- promote strong environmental, social, and governance (ESG) best practices, standards, and incentives to improve supply chain security, sustainability, and responsible sourcing;
- support social, economic, and environmental sustainability through incorporating climate and environmental risk reduction in critical minerals value chains through the protection of the rights of Indigenous Peoples set out in the United Nations Declaration on the Rights of Indigenous Peoples; and
- engage with the private finance sector, including pension funds, investment banks, and development banks, to promote and increase investment into sustainable critical mineral projects across the value chain.
Nature. Key nature and biodiversity commitments include:
- produce an ambitious and inclusive global agreement to end plastic pollution by the end of 2024;
- pursue the swift, full, and effective implementation of the Kunming-Montréal Global Biodiversity Framework (the Framework; read our earlier bulletin on the Framework here) and to the achievement of each of its goals and targets;
- advance the implementation of the global effort to halt and reverse deforestation and forest degradation by 2030;
- align all relevant fiscal and financial flows with the Framework and call on other countries and financial institutions, in particular MDBs and, where appropriate IFIs, to do the same;
- measure biodiversity and its links to the economy through environmental-economic accounting frameworks such the Recommendations of the Taskforce on Nature-related Financial Disclosure (TNFD); and
- stimulate innovative schemes, such as payment for ecosystem services, green bonds, biodiversity offsets and credits, and benefit-sharing mechanisms, with environmental and social safeguards.
Next G7 Meeting. The G7 Italian Presidency will next host the Leaders’ Summit, from June 13 to 15, in Apulia, Italy, when leaders are expected to continue the focus on energy issues, including linkages to climate and the environment.
For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.
Special thanks to Anuja Purohit for her assistance in preparing this bulletin.
