Today G7 climate, environment and energy ministers released a joint communique that falls short of carrying forward the ambition of the COP28 agreement to transition away from fossil fuels.
G7 countries represent 27% of global oil and gas production, and are responsible for nearly 48% of CO2 from new oil and gas production.
Oil Change International data shows between 2020 and 2022, the G7 provided USD $25.7 billion a year in international public finance for fossil fuels, compared to USD $10.3 billion for clean energy. Today’s communique reaffirmed the G7’s agreement to end this finance, but with no clear timeline.
This year’s G7 negotiations are at a historic time for climate politics. It is the first opportunity to reflect the landmark agreement from COP28 to phase out fossil fuels, and the last time the group of countries will meet before agreeing to a new climate finance goal and submitting updated climate plans to 2035. This is the last chance for this group of rich countries to align their plans with the agreed 1.5°C limit.
In response, Romain Ioualalen, Oil Change International Global Policy Campaign Manager, said:
“This was the first opportunity for the G7 to show they were taking the COP28 agreement seriously. They have failed.
“The G7 are falling far short of what’s needed to implement the COP28 agreement to phase out fossil fuels. They are not just delaying taking climate action – they are actively blocking a fair, fast, full, and funded phase out of fossil fuels. These leaders cannot say they’re committed to a livable climate, while slow walking coal phase out, endorsing expansion of fossil gas, failing to pledge new climate finance.
“While the G7 focuses on coal, it conveniently omits to stress that limiting warming to 1.5°C means they also need to end fossil fuel expansion at home, going fastest in phasing out existing production. They must end the billions of dollars in taxpayer finance still flowing to fossil fuel projects abroad and fund the buildout of affordable renewable energy on fair terms. If their oil and gas expansion plans are allowed to proceed, it would lock in climate chaos and an unlivable future.
Makiko Arima, Senior Finance Campaigner at Oil Change International said:
“At a time when we need to phase out fossil fuels, Japan is driving gas expansion across Asia and globally. Last month, Japan approved over $2.7 billion dollars in financing for new gas projects in Vietnam, Australia and Mexico, breaking its G7 promise to end public finance for overseas fossil fuel projects. Japan is especially active in promoting gas in Asia through the Asia Zero Emissions Community initiative, which is just greenwashing designed to benefit Japanese corporate interests. Committing to phase out coal is a step in the right direction, but the phase out must include technologies like co-firing ammonia at coal plants that prolong the use of coal, as well as other fossil fuels like gas to ensure it is 1.5 degree-aligned.”
