G-7 agrees to accelerate phase-out of unabated fossil fuels, but no timeline to exit coal

SAPPORO – The Group of Seven (G-7) nations have agreed to hasten the phase-out of unabated fossil fuels but fell short of sealing a deal on a timeline to exit coal, French Minister for Energy Transition Agnes Pannier-Runacher said on Saturday. 

Ms Pannier-Runacher spoke on the sidelines of a meeting of G-7 energy and environment ministers in the northern Japanese city of Sapporo that runs till Sunday.

“For the first time ever, the G-7 says that we must accelerate the phasing out of all unabated fossil fuels,” she told reporters. “The G-7 also says that there should be no more new coal-fired power plants.”

Security, already tight around the event, was given greater immediacy after an explosion disrupted an outdoor speech by Prime Minister Fumio Kishida in the western part of Japan.

Mr Kishida was unharmed, and police subdued a man at the scene.

A person familiar with the discussions told Reuters that the G-7 ministers decided to endorse a goal to “drastically increase electricity generated by renewable energies”.

The ministers also appeared to be considering numerical targets for increasing solar power capacity to at least 1 terawatt and offshore wind power capacity to 150 gigawatts by 2030, Reuters reported.

Ms Pannier-Runacher said the ministers could not come to agreement on a specific date to exit coal, although they agreed there should be no new coal-fired power plants.

The failure to agree on a timeline to exit coal may weaken resolve ahead of a critical United Nations climate summit in Dubai later in 2023 – COP 28 – where nearly 200 nations will be pressed to phase out the fossil fuel.

The Sapporo event has also put focus on the need to help emerging countries reduce emissions, including through financing.

“We, the G-7, need to not only reduce our own emissions, but also take concrete actions to achieve emission reductions globally,” Minister of Economy, Trade and Industry Yasutoshi Nishimura said in opening remarks for the environment and energy meeting, adding that this included countries in the Global South.

Mr Nishimura said the ministers would like to discuss ways of financing the reduction of carbon in industries such as chemicals, shipping and steel.

The ministers in Sapporo are due to discuss the growing importance of critical minerals for the clean energy transition and the need to prevent economic and security risks caused by vulnerable supply chains and monopolisation, among other topics, the latest draft communique seen by Reuters showed.

The issue of emissions in emerging markets has long been a focus for developed countries.

However, the world’s richest countries need to do more to help emerging nations reduce carbon, said Mr Alden Meyer, a senior associate at E3G, a climate change think-tank.

“There is a responsibility for the G-7 and other developed countries to provide finance, and to mobilise private finance as well, to help the decarbonisation of the developing countries,” Mr Meyer told a briefing ahead of the start of the G-7 meeting.

There needs to be “much stronger leadership” from G-7 countries in leveraging financial and technology resources to help developing countries reduce emissions, Mr Meyer said. REUTERS, BLOOMBERG