Global Courant 2023-04-16 08:26:58
SAPPORO, Japan – Leaders of the world’s most developed economies reached an agreement to accelerate the phase-out of unabated fossil fuels, but failed to agree on a deadline for exiting coal and left the door open for new investment in natural gas.
The Group of Seven (G-7) said it would “accelerate the phase-out of unabated fossil fuels to achieve net zero in energy systems by 2050,” according to a draft communiqué viewed by Bloomberg on April 16.
The group’s energy and environment ministers are meeting this weekend in the northern Japanese city of Sapporo and are expected to issue an official statement on Sunday, though language around fossil fuels is believed to have been finalized, people familiar with the matter said.
The G-7 have declared themselves leaders in the global decarbonisation mission and the communiqué sends an important political signal that will set the tone for energy and climate talks for the rest of the year.
Failing to agree on a timeline to move away from coal could weaken resolve ahead of a critical UN climate summit in Dubai later this year – COP28 – where nearly 200 countries will be pressured to cut the fossil fuel to be phased out gradually.
“Investments in the gas sector may be appropriate to address potential market shortfalls” caused by Russia’s invasion of Ukraine if they are “implemented in a manner consistent with our climate goals and without creating lock-in effects,” he said. the G-7 in a statement. the draft communiqué seen by Bloomberg.
The document is not the final version and changes may still be made.
In previous drafts, Japan had called for support for upstream investment in LNG and natural gas.
French Energy Minister Agnes Pannier-Runacher told reporters on the sidelines of the meeting on Saturday that a compromise had been reached which “implicitly means we cannot invest in the exploration of new gas capacity.”
The meeting in Sapporo is a prelude to the annual G-7 summit for world leaders, which Japanese Prime Minister Fumio Kishida will hold in Hiroshima next month. BLOOMBERG
