The G7 leaders are committed to addressing the climate crisis and accelerating the global clean energy transition to reach net zero emissions by 2050 at the latest. They reaffirmed their commitment to the Paris Agreement and acknowledged that public and private investment in the industries of the future will be necessary. Further cooperation is necessary to fill the investment gap for the clean energy transition to lower the cost of the energy transition worldwide.
The leaders also acknowledged that their trade policies will play a major role in achieving their common goals and that these must be based on their commitment to strengthening the rules-based, fair, equitable, and transparent multilateral trading system with the World Trade Organization (WTO) at its core. The G7 is working to comprehensively reform and strengthen the multilateral trading system so that it can effectively respond to the most pressing issues of our time including sustainable development and the clean energy transition.
In driving a clean energy economy of the future, the G7 leaders emphasized that they will cooperate in an open and transparent manner reflecting their joint commitment not to act at each other’s expense. They committed to upholding their views as the cornerstone of a just transition to a clean energy economy that achieves sustainable growth and high-quality jobs. They also acknowledged the role clean energy technologies play in achieving these goals and committed to research and further collaboration in this area.
The G7 leaders’ joint efforts to lead the transition to a clean energy economy will be based on their collective commitments to engage in policies that effectively incentivize partners to achieve an ambitious clean transition of their economies, lift workers, support marginalized communities, protect the environment, and uphold and strengthen the rules-based multilateral system. The action plan seeks to deepen their cooperation with and support for partners around the world to ensure that the transition to the clean energy economies of the future reduces poverty and advances shared prosperity.
The leaders recognize that trade and trade policies are important tools to tackle climate change and can be drivers of sustainable growth. Based on this recognition, they will pursue trade policies that drive decarbonisation and emissions reduction, by spurring markets to account for embedded emissions in traded goods. They welcome the work of the WTO in this area and recognize that their climate policies may take different approaches including carbon pricing mechanisms, regulations, and incentives.
The G7 also recognizes vulnerabilities in their supply chains, highlighted by the Covid-19 pandemic and the energy crisis. They aim to increase total investment in the clean energy manufacturing supply chain and accelerate the development and deployment of relevant technology. They put emphasis on scaling up investments globally into the manufacturing and installation of clean energy technologies and diversifying clean energy supply chains.
The G7 leaders commit to establishing new partnerships with low- and middle-income countries (LMICs) that will play critical roles in building secure, resilient, affordable, and sustainable clean energy supply chains for local and global energy transitions. They will utilize the G7 Partnership for Global Infrastructure and Investment (PGII) to catalyze public and private finance towards quality climate and energy security investments that will support LMICs to fully benefit from the diversification of supply chains, reduce high-risk dependencies, and to meet their own clean energy transition goals.