While the fanfare of the G7, with shake-hands and selfies, is slowly settling down, a report prior to the Summit warned that it is the last opportunity for G7 to deliver on fossil fuel promises before updating climate plans. That was the last time these governments met before submitting enhanced climate plans under the Paris Agreement.
Data published by Oil Change International revealed that 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.
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.
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.
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.
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