Why in news?

G7 sets renewables target, however, no timeline for fossil fuel phase out.

What are the key proposals of the meeting?

• Energy transition - G7 collectively decided to increase offshore wind capacity by 150 gigawatts and add solar capacity of over 1 terawatt.
• Fossils fuels - To ‘accelerate the phase out of’ unabated fossil fuels but failed to share a timeline for the phase out, including for unabated domestic coal.
• To ‘fully or predominantly’ decarbonise power sector by 2035.
• To eliminate inefficient fossil fuel subsidies by 2025 or sooner.
• Critical minerals - To resolve vulnerabilities and diversify the source of these critical minerals.
• Climate finance - Committed to work on the decisions agreed upon at COP27 to establish new funding arrangements, including a fund to assist developing countries.
• To accelerate efforts for financing adaptation.
• Carbon markets - ‘Principles of High-Integrity Carbon Markets’ have been proposed to ensure high-integrity carbon markets.
• Industrial decarbonisation - Recognised the risk of carbon leakage, where companies simply move their operations to countries with less stringent climate policies.
• Pledge to end new plastic pollution by 2040.

Why the meeting is not constructive?

• Fossil Fuels – While G7 ministers recognised the need to scale up renewable energy, their commitment to phase out of fossil fuels is frivolous and full of loopholes.
• Rich countries – They are shirking their responsibility to provide adequate finance to help poorer nations adapt to and recover from the losses and damages caused by climate disasters.
• The energy-transition ambition is not equally shared among the members.
• Japan – It has been an outlier because of its reluctance to phase out fossil fuels and instead rely on carbon capture and the use of hydrogen in promoting low-carbon technologies.
• Canada – While Canada pushed for stronger language on coal phase-out, the statement on fossil fuels was watered down due to Japan’s opposition.
• Overall, the commitments made on energy transitions, with targets being set for solar and wind capacity additions are more than what was initially expected.
• However, this may not be enough to keep the 1.5 degrees Celsius target achievable.

What are the challenges in phasing out fossil fuels?

• The past commitments to energy transition were not achieved.
• No timeline to eliminate the phase out of fossil fuels.
• Lack of consensus in deciding the alternate energy.
• Loopholes in policy measures to phase out fossil fuels.
• The energy-transition ambition is not equally shared among the members.
• Geopolitical concerns for critical mineral extraction from poor countries.
• Lack of comprehensive action plan on carbon leakage.
• Low-carbon technologies and renewable hydrogen were not given due importance.

References

1. Down To Earth│G7’s Meetings
2. The Indian Express │G7 Climate and Environment Ministers’ meet concludes