G7 Disappoints With Fossil Fuel 'loophole'

Leaders of the Group of Seven rich nations on Tuesday watered down a key pledge on ending fossil fuel financing abroad, as the need to tackle global warming clashed with fears over energy shortages

Elmau Castle, Germany, (APP - UrduPoint / Pakistan Point News - 28th Jun, 2022 ) :Leaders of the Group of Seven rich nations on Tuesday watered down a key pledge on ending fossil fuel financing abroad, as the need to tackle global warming clashed with fears over energy shortages.

The G7 countries -- Britain, Canada, France, Germany, Italy, Japan and the United States -- ended a summit in the Bavarian Alps by reaffirming their goal to reduce reliance on dirty fossil fuels and speed up the green energy transition.

But after three days of haggling, they also agreed to allow public investment in new international fossil fuel projects under certain conditions, as countries scramble to break free from Russian oil, coal and gas following the Russia-Ukraine war.

German Chancellor and summit host Olaf Scholz "promised a crucial boost for international climate action and he didn't deliver," said Friederike Roder, vice president at the non-profit group Global Citizen.

An alliance of civil society organisations including Oil Change International also issued a scathing verdict, condemning the "loopholes" on gas that made it into the final communique.

The text reiterates that G7 nations will still halt new public investments in overseas fossil fuel projects by the end of 2022.

But given the "exceptional circumstances" of the Ukraine war, "publicly supported investment in the gas sector can be appropriate as a temporary response".

Observers said Germany and Italy, heavily reliant on Russian energy, had pushed hard for the amended text.

Like other European countries, they are racing to stockpile gas before winter and diversify suppliers as they brace for Russia to turn off the energy taps altogether after it recently slowed deliveries.