FOR IMMEDIATE RELEASE
Contact:
Nicole Rodel, Oil Change International – nicole@priceofoil.org
Last opportunity for G7 to deliver on fossil fuel promises before updating climate plans
G7 countries have a responsibility to lead on the implementation of the COP28 decision to transition away from fossil fuels by ending domestic fossil fuel expansion and international public finance for fossil fuel projects.
G7 countries account for 27% of current global oil, gas, and coal production
U.S., UK, and Canada could be responsible for nearly half (48%) of the carbon-dioxide (CO2) pollution from new oil and gas extraction projects planned between 2023 and 2050 – equivalent to the lifetime emissions of nearly 600 coal plants
New figures show the G7 provided USD $25.7 billion each year in international public finance for fossil fuels, compared to USD $10.3 billion for clean energy.
Only 1% of the G7’s clean energy finance went to low-income countries. 88% of G7 clean energy financial support to low- and lower-middle-income countries was delivered as loans, which risks exacerbating the worst and most widespread debt crisis in history.
4 June 2024 – Data published today by Oil Change International shows G7 countries are continuing to overwhelmingly prop up fossil fuels at home and abroad, despite agreeing to phase them out at COP28. G7 countries are massively expanding fossil fuel production at home and investing billions in more fossil fuel infrastructure abroad.
G7 nations – Canada, France, Germany, Italy, Japan, the United States, and the United Kingdom – will gather for the upcoming Leaders’ Summit in Italy from 13 – 15 June, at a historic time for climate politics. This will be the last time these governments meet before submitting enhanced climate plans under the Paris Agreement.
At home, G7 countries have both the capacity and the responsibility to lead in phasing out fossil fuels. However, not only are G7 countries among the world’s biggest extractors of fossil fuels, they also have large expansion plans that sabotage any hope of achieving the climate goals they have repeatedly committed to.
Italy, which holds the G7 presidency this year, recently committed to doubling its production of natural gas, when it should be among the nations phasing out fossil fuel production fastest.
The U.S. is both the largest oil and gas producer globally and has the biggest oil and gas expansion plans by far, despite President Biden’s climate promises.
To uphold the COP28 decision, G7 countries must quickly phase out all existing production, and immediately end fossil fuel expansion at home. Continued oil and gas expansion would lock in climate chaos and an unlivable future.
Abroad, G7 members continue to provide billions of dollars in taxpayer finance for international fossil fuel projects, despite repeatedly promising to end financial support for these projects. Last year, the G7 even misleadingly claimed it had ended such financing. However, as of May 15, 2024, OCI has tracked at least $8.5 billion in public support for fossil fuel projects abroad from the G7 since the end of 2022, with Japan and the United States providing the majority of this financing.
The G7’s financing of fossil fuels still dwarfs its financial support for renewable energy, using public money to enable high-risk fossil fuel projects worldwide, while delaying the transition to renewables.
Oil Change International’s recommendations for G7 leaders at the upcoming summit and beyond include:
Strengthen fossil fuel phase-out language and targets agreed at the 2023 G7 Hiroshima Summit and at COP28
Demonstrate robust implementation of the COP28 UAE consensus to transition away from fossil fuels
Acknowledge reductions in future fossil fuel demand and the impact this will have on export-dependent producer countries
Prioritize support for the clean energy transition with a clear clean energy finance offer, that dramatically scales up clean energy finance where it is most needed, on fair terms
Reiterate and strengthen the G7 2022 commitment to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022.”
Adam McGibbon, Public Finance Strategist at Oil Change International, said:
“The G7 are not just delaying taking climate action – they are actively blocking a fair, fast, full, and funded phase out of fossil fuels with massive expansion plans at home, and backing fossil fuel projects abroad with billions in public money.
“This summit is a critical moment for G7 nations to demonstrate true leadership. We’re calling on G7 leaders to acknowledge that fossil fuel expansion is incompatible with the 1.5C limit, and to commit to submitting enhanced climate plans under the Paris Agreement that will deliver a science-aligned fossil fuel phaseout and support for an equitable transition to clean energy.
“There is no shortage of public money to make the COP28 decision on fossil fuels a reality – it is just poorly distributed to the most harmful parts of our economies that are driving the climate crisis and extreme inequalities. G7 countries must make good on their promise to stop funding fossil fuels, and pay their fair share for people-centered renewables on fair terms.
“The G7 are among the world’s most powerful and wealthiest nations. They have a responsibility to lead the way both at home and abroad. Anything less is hypocrisy and gross negligence, and risks endangering the implementation of the COP28 decision to transition away from fossil fuels.”
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Download the briefing: Walk The Talk: Time for the G7 to make the COP28 Fossil Fuel Pledge a Reality
Recommendations for the 2024 G7 Summit:
At home:
Strengthen fossil fuel phase-out language and targets agreed at the 2023 G7 Hiroshima Summit and at COP28: Countries must agree to no new oil and gas projects, as recognized by the International Energy Agency Net Zero Roadmap, and must, by the end of this year, commit to align oil and gas production with the objective of limiting warming to 1.5°C.
Demonstrate robust implementation of the UAE consensus: The G7 must commit to whole-economy national transition plans by 2025, which communicate how the G7 will deliver an orderly phase-out of oil, gas, and coal within 1.5°C-aligned timeframes, and agree to include these reduction goals in their 2035 Nationally Determined Contributions (NDCs). This must include fixing the inadequate coal phase-out deadline agreed in the Climate and Energy Ministerial communiqué by agreeing to a complete coal phase-out by 2030 and adding a commitment to phase out fossil gas by 2035. Leaders must also recognize that energy security will be dramatically improved through the rollout of renewable energy, not through continued reliance on oil, gas, and coal.
Acknowledge reductions in future fossil fuel demand and the impact this will have on export-dependent producer countries: The G7 communiqué should build upon the International Energy Agency’s ministerial communiqué by recognizing that in a 1.5°C-compatible scenario, which includes net zero emissions by 2050, declines in fossil fuel demand are sufficiently steep that no new oil and gas projects are required beyond those that are already operational. The G7 text must recognize the impact this will have on oil- and gas-dependent producers, particularly low- and middle-income countries, and commit to delivering enhanced cooperation and support to facilitate managed and just transitions for these nations.
Abroad:
Prioritize support for the clean energy transition: The final G7 communiqué must make a clear international clean energy finance offer. The G7 must dramatically scale up clean energy finance where it is most needed, on fair terms. Clean energy finance must not further burden low- and lower-middle-income countries with debt. Clean finance must also be implemented with safeguards and standards to ensure all projects uphold and protect human rights, including Indigenous Peoples’ right to free, prior, and informed consent.
Reiterate and strengthen the 2022 commitment to “end new direct public support for the international unabated fossil fuel energy sector by the end of 2022.” Last year, the G7 language falsely stated that the G7 “ended new direct public support for the international unabated fossil-fuel energy sector in 2022.” However, G7 fossil finance continues. It is therefore critical that this commitment is reiterated and strengthened through removing outdated caveats that allow continued investment in upstream gas or LNG infrastructure, under the guise of energy security. In addition, countries must expand their international fossil fuel exclusion policies to cover their domestic public finance for fossil fuels.
