G7 aims for mostly decarbonised electricity by 2035

G7 countries have committed to reaching "predominantly decarbonised electricity sectors" by 2035, taking further steps towards what it called an eventual phase-out of domestic unabated coal power generation.

The group's report, published today following a meeting of climate, energy and environment ministers, gave no concrete detail on a full phase-out of coal-fired power generation, and German vice-chancellor and energy minister Robert Habeck noted countries held different stances on the issue.

"Step by step we progress," he said. "Phasing out of coal is a common goal."

The report's wording left some flexibility and emphasised the G7 "reaffirm the importance of national energy security, affordability and resilience." Russia's invasion of Ukraine in February led several member countries to sharply reduce their reliance on Russian fossil fuels.

Security of energy supply is a live issue, and the report echoed a G7 statement in March in noting Opec's "key role" in international energy markets. It also stressed the importance of increased LNG deliveries to Europe and acknowledged "investment in this sector is necessary in response to the current crisis, in a manner consistent with our climate objectives and without creating lock-in effects."

"We need short-term efforts to replace Russian gas… we've been quite successful but we have to careful not to be too successful," Habeck said, adding he did not want gas consumption to continue for the next 30-40 years.

Members plan to accelerate the transition to renewable energy while "keeping energy security and affordability at the core of our action," they said. They highlighted the need for energy efficiency, and launched a hydrogen action pact to drive development of low-carbon hydrogen and other power-to-X chains, domestically and globally. This will involve "strong financial commitments" and the creation of common standards for hydrogen.

The group reiterated plans to decarbonise industry, transport, and reach net zero emissions in the shipping and aviation sectors by 2050. It pointed to the IEA's net zero scenario, which suggested G7 economies invest at minimum $1.3 trillion in renewable energy, including tripling investment in clean power and electricity networks between 2021-30.

G7 members also committed to end new direct international public financing for unabated fossil fuels by the end of this year, except in "limited circumstances", and reiterated it would stop "inefficient fossil fuel subsidies" by 2025.

"We cannot support this behaviour by granting subsidies… it's absolutely absurd," Habeck said.

Climate financing pledges

The G7 said it is "collectively committed" to the pledge made by developed countries to mobilise $100bn/yr in climate finance to non-developed countries and expressed "deep regret… this goal has not yet been fully delivered." It said it is confident this will be met in 2023.

It noted "with concern the scale of private finance currently still supporting non-Paris aligned activities especially in the fossil fuel sector," and said the public sector must ensure "appropriate regulatory frameworks, policies and fiscal and economic levers" to ensure sustainable investment. The group will collectively at least double climate finance for adaptation to developing countries from 2019 levels by 2025.

It urged all countries, particularly major emitters, to revisit targets for 2030 in their nationally determined contributions (NDCs) by the end of the year to ensure they are in alignment with Paris Agreement goals. All G7 members have committed to achieving net zero greenhouse gas emissions by 2050 at the latest. And members will work to implement the Global Methane Pledge, made at the UN Cop 26 climate summit, including working with the oil and gas sector to reduce flaring.

Biodiversity on the agenda

The G7 statement also touched on biodiversity, saying it will push for adoption of the Post-2020 Global Biodiversity Framework at the UN biodiversity Cop 15 summit, scheduled for the third quarter of this year.

Additonally, they aim to put in place measures to ensure the sustainability of supply chains and will collaborate to ensure the security of "critical mineral supply chains" — noting several minerals and rare earths are crucial for renewable energy technologies. Germany and the US signed an agreement during the ministerial to expand their co-operation on environmental issues, including climate protection and air pollution.

By Georgia Gratton