The G7 – an organisation consisting of seven of the world’s largest ‘advanced’ economies – have reaffirmed their goal of reducing reliance on fossil fuels. Following last year’s COP26 conference, countries around the world have been investing great amounts of time and efforts in the hope of reaching a sustainable future, as soon as possible.
And with energy levels and prices becoming increasingly volatile, it is up to these leaders to find ways of helping countries, businesses and individuals, while also reducing harmful emissions. Which is why the G7 leaders have come together to establish a realistic and achievable goal.
So, what does the fossil fuel pledge consist of, and how could it impact our depleting climate?
What is the G7 fossil fuel pledge?
Made up of the UK, Canada, Japan, France, Italy, Germany and the US, the G7 came together in May 2022 to set the end of year deadline for ending taxpayer funding for overseas oil, gas and coal projects.
The leaders recently congregated in the Bavarian Alps to discuss the increasing role of gas projects, which has been a major consequence of Russia’s invasion of Ukraine. They plan on reversing commitments to halt the financing of overseas fossil fuels by the end of the year.
Ministers took this time to discuss many different climate issues, and find ways to solve them as best they can. Such as agreeing to decarbonise electricity sectors as much as possible by 2035, phase out coal-based power plants and prioritise the need for financial support for vulnerable countries.
How could this have an impact on climate change?
Making the switch away from fossil fuels could provide clean energy projects with an extra £26 billion. However, investment is currently three to six times lower than the level needed by 2030 to hit the target of warming temperatures at 2°C. Meaning governments must identify a clear strategy when it comes to investing in renewable energy infrastructure.
With the energy market being even more heavily impacted by Russia’s recent invasion of Ukraine, the ministers also agreed on pledges to address national security concerns. This will be ensured by boosting clean energy strategies and reducing their reliance on Russian gas supplies.
What are the loopholes?
However, while the G7 meeting may hold a lot of promise, commentators were quick to find loopholes within the supposed progress. During the three days ministers spent discussing and haggling deals, they decided to allow public investment in new international fossil fuel projects under certain conditions. This is specifically apparent in countries that are looking to break free from Russian energy in the current climate.
The official 39-page statement also vaguely exempts whole countries from ending investments in overseas fossil fuel projects. Explaining that, “in limited circumstances clearly defined by each country consistent with a 1.5°C warming limit.”
Where does Monarch come in?
Reaching a green future as quickly as possible is vital for the both public health, and the welfare of the planet. It is essential that we all play our part; from country leaders to business owners.
At Monarch, our goal is to build a holistic sustainable strategy for your organisation that integrates efficiency across your energy and utility portfolios. We strive to find the greenest, most efficient and cost-effective solutions for your energy, water and waste.
We work with several housing associations, educational organisations, corporates, and property management companies to reduce their utility costs – and optimise their energy and carbon management. Helping them to stay compliant and ahead of the curve, as the UK transitions to a net zero economy.
If you are interested in building a greener future for your business, contact us at Monarch today.