BERLIN - Indonesia is set to join a new climate club established by the Group of Seven nations, German Chancellor Olaf Scholz said.

The addition of South-east Asia’s biggest economy would add heft to the club, which Mr Scholz pushed to create in 2023 in a bid to coordinate global rules on climate matters and avoid trade disputes over green tariffs. 

Indonesia is set to receive several billion euros in the coming years from rich nations and private investors to accelerate its shift away from fossil fuels, Mr Scholz said, in a speech on Sunday that opened the Hannover Messe trade fair, with Indonesian President Joko Widodo in attendance.

Mr Scholz is looking to build support for an ambitious climate agenda in Germany, which plans to rapidly build out renewable energy production while phasing out nuclear power plants and ending its reliance on Russian natural gas.

The German chancellor is also attempting to prod other nations to speed up their climate agendas, while creating more opportunities for European companies to benefit from the global energy transformation.

He called on European leaders to accelerate trade talks with countries including Indonesia, India and Mexico.

Mr Scholz suggested that Europe offer countries with raw materials such as rare earths and copper better deals that would allow them to capture more value from the processing of the materials. BLOOMBERG