The G7 climate and energy ministers pledged to accelerate the transition to cleaner renewable energy, stressing the importance of reducing carbon emissions from coal and achieving a predominantly decarbonized power sector by 2035. However, they did not agree on a timeline to completely phase out coal-fired power plants, as some countries like Japan, the US, and the EU opposed this.
The communiqué reaffirmed the G7’s commitment to accelerating the clean energy transition to net-zero greenhouse gas emissions by 2050, cutting down on fossil fuels like coal and expanding solar and offshore wind. It also supported Japan’s policy emphasizing clean coal technology, hydrogen, and nuclear energy for energy security. The G7 countries, responsible for 40% of global economic activity and a quarter of carbon dioxide emissions, face challenges in balancing climate action with development needs.
Also read: New York Offshore Wind Projects: The Role of GE Wind Turbines.
Background on G7’s Climate Commitments
The G7’s Evolving Climate Commitments
The G7 (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) has made increasingly stringent commitments to end unabated coal power generation:
- In 2021, they agreed to end public finance for unabated coal power by the end of that year.
- In 2022, they committed to phase out unabated coal-fired power generation and fully or predominantly decarbonize their power sectors no later than 2035.
- In 2023, they pledged to end the construction of new coal power plants domestically and work with others to achieve this globally.
Over the years, the G7 countries have made various other climate commitments:
- In 2015, they agreed to phase out fossil fuel subsidies by 2025.
- In 2016, they reaffirmed their commitment to the Paris Agreement on climate change.
- In 2018, they committed to increasing their climate ambition and strengthening their national climate action plans.
- In 2019, they pledged to achieve a goal of net zero greenhouse gas emissions by 2050.
Challenges and Priorities
Despite these commitments, the G7’s climate agenda has faced challenges and competing priorities, such as the Greek debt crisis and the conflict in Ukraine. Nonetheless, climate action remains a key focus, as the G7 countries have a responsibility to cut emissions and transition to a low-carbon economy to achieve the Paris Agreement’s 1.5°C goal.
| G7 Climate Commitments | Target |
|---|---|
| Increase solar capacity | Over 1 terawatt (TW) by 2030 |
| Increase offshore wind capacity | 150 gigawatts (GW) by 2030 |
| Decarbonized power sector | By 2035 |
| Electrified new passenger car sales | 100% by 2035 |
While the G7 has made significant climate commitments, more action is needed, such as redirecting fossil fuel subsidies towards renewable energy and promoting low-carbon innovation. The G7 countries’ collective leadership and influence on the global climate agenda is crucial, as they represent a significant share of global GDP and historical emissions.
Key Details of the Agreement
G7 Commitment to Decarbonize Power Sector
The G7 nations reaffirmed their commitment to achieving a fully or predominantly decarbonized power sector by 2035. While the G6 countries (Canada, France, Germany, Italy, the UK, and the US) pushed for a more ambitious “fully decarbonized” target, Japan advocated for a “predominantly decarbonized” goal, citing energy security concerns.
Renewable Energy Targets
To accelerate the clean energy transition, the G7 set specific targets for increasing offshore wind capacity to 150 GW and solar photovoltaic (PV) capacity to over 1 TW by 2030. These ambitious targets demonstrate the G7’s growing confidence in deploying renewable energy sources at a large scale.
Phasing Out Unabated Coal
The G7 committed to working with other countries to end new unabated coal projects globally. This could involve financial support, technical assistance, and cooperation on Just Energy Transition Partnerships to facilitate the phase-out of coal-fired power plants without carbon capture technologies.
G7 Coal Phase-Out Timeline
- Current Status: In 2023, the G7 nations collectively generated 16% of their electricity from coal, down from 29% in 2015.
- Japan had the highest share of coal in its electricity generation at 32%, followed by Germany at 27%.
- The US was in line with the G7 average at 16%.
- Other G7 members have mostly phased out coal, with France at 0.4%, the UK at 1.4%, Canada at 5%, and Italy at 5.3%.
- Agreement: The G7 nations have agreed to shut down coal plants by 2035, marking a significant step towards the goal of fully or predominantly decarbonizing their power sectors by that year.
- Transition to Natural Gas: The G7 countries generated 34% of their electricity from natural gas in 2023, up from 29% in 2015. The agreement acknowledges that investments in natural gas “can be appropriate” to address the energy crisis, provided they are consistent with climate objectives.
Challenges and Nuances
- Japan’s Stance: Japan faced criticism from environmental groups for its push to keep the door open for continued investments in natural gas. Additionally, Japan resisted accelerated coal phase-out timelines, leading to nuanced language in the agreement to accommodate differences in energy strategies among G7 members.
- Limited Impact: The commitments made by countries to phase out unabated coal in power generation cover only 4.1% of global coal-fired generation and 1.3% of global energy-related CO2 emissions, falling short of the International Energy Agency’s (IEA) Net Zero Emissions by 2050 Scenario.
- Implementation Challenges: Key challenges include insufficient time for consultation and implementation, lack of support for affected workers and communities, ensuring security of electricity supply, and difficulties in mobilizing investment in clean electricity and necessary infrastructure.
- Emerging Economies: Emerging market and developing economies, where the bulk of existing coal assets are located, face challenges such as rapid growth in electricity demand, lower levels of financial development, and higher state ownership of coal plants.
- Employment Implications: The transition away from coal has implications for employment, with a projected 30% reduction in coal-related jobs by 2030 compared to 2019, and limited scope to replace lost coal jobs on a one-to-one basis with opportunities in clean energy.
Despite these challenges, the G7’s commitment to phase out coal and transition to clean energy sources is a significant step towards addressing climate change and achieving the goals of the Paris Agreement.
Implications and Impact
Global Momentum for Coal Phase-Out
The G7’s commitments have laid the foundation for progress at the UN Climate Change Conference COP28, where there was a historic consensus to ‘transition away from fossil fuels in energy systems’ and ‘accelerate efforts towards the phase-down of unabated coal power’. This global momentum is driving real-world progress:
- The use of coal in power generation peaked worldwide in 2023.
- In the OECD and EU, three-quarters of coal-fired electricity generation capacity is now on track to close by 2030.
Growing Alliance for Coal Phase-Out
The Powering Past Coal Alliance (PPCA) has grown to over 180 members, counting almost one-third of the world’s governments and 35 out of 43 of the OECD and EU governments. This alliance aims to accelerate the transition away from unabated coal power generation and promote cleaner energy alternatives.
Supporting Developing Countries
Progress is also being made to support developing countries’ transition from coal power, with initiatives like the Just Energy Transition Partnerships (JETPs) in Indonesia, Senegal, South Africa, and Vietnam. These partnerships provide financial and technical assistance to facilitate a just transition away from coal while addressing energy security and economic development needs.
Opportunities for Ambitious Climate Action
The upcoming Nationally Determined Contributions (NDCs) and Long-term Strategies (LTSs) in 2025 provide critical opportunities for countries to set out their actions to phase out unabated coal power by 2035. These national climate plans will be crucial in translating the G7’s commitments into concrete policies and measures.
| Initiative | Description |
|---|---|
| Powering Past Coal Alliance (PPCA) | A global alliance of governments, businesses, and organizations committed to phasing out unabated coal power generation. |
| Just Energy Transition Partnerships (JETPs) | Partnerships between developed and developing countries to support the transition away from coal while addressing energy security and economic development needs. |
| Nationally Determined Contributions (NDCs) | National climate plans submitted by countries under the Paris Agreement, outlining their efforts to reduce greenhouse gas emissions and adapt to climate change. |
| Long-term Strategies (LTSs) | Long-term strategies submitted by countries under the Paris Agreement, outlining their plans to achieve net-zero emissions and climate resilience. |
Ensuring a Just Transition
Ensuring affordability and a just transition for affected workers and communities is crucial as the world transitions away from coal. This includes providing retraining and alternative employment opportunities, as well as addressing the socio-economic impacts on coal-dependent regions.
Challenges and Criticisms
Energy Security Concerns
While the G7 nations have committed to phasing out coal and transitioning to clean energy sources, some countries, particularly Japan, have raised concerns about energy security. Japan has advocated for a “predominantly decarbonized” power sector by 2035 rather than a fully decarbonized one, citing the need for a diverse energy mix that includes nuclear power and hydrogen to ensure a stable energy supply.
Limited Impact on Global Emissions
Critics argue that the G7’s commitments to phase out unabated coal power generation will have a limited impact on global emissions. The countries covered by the agreement account for only 4.1% of global coal-fired power generation and 1.3% of global energy-related CO2 emissions. Achieving significant reductions in global emissions will require broader participation from major coal-consuming nations outside the G7, such as China, India, and other developing economies.
Implementation Challenges
- Insufficient Consultation and Preparation: Some stakeholders have criticized the G7 for setting ambitious targets without adequate consultation and preparation time. This could lead to challenges in implementing the necessary policies and infrastructure changes, potentially undermining the transition’s effectiveness.
- Ensuring Electricity Supply: Phasing out coal-fired power plants raises concerns about ensuring a reliable and affordable electricity supply, particularly during the transition period. Careful planning and investment in alternative energy sources and grid infrastructure will be crucial to avoid disruptions.
- Mobilizing Investment: Transitioning to clean energy sources will require significant investment in renewable energy technologies, energy storage solutions, and transmission infrastructure. Mobilizing the necessary capital and attracting private investment could be a challenge, particularly in countries with limited financial resources.
Employment and Economic Impacts
The transition away from coal is expected to have significant implications for employment and local economies. According to the International Energy Agency (IEA), coal-related jobs are projected to decline by 30% by 2030 compared to 2019 levels. Ensuring a just transition for affected workers and communities, including retraining and alternative employment opportunities, will be a critical challenge.
Emerging Economies’ Challenges
Emerging market and developing economies, where the bulk of existing coal assets are located, face unique challenges in transitioning away from coal. These include rapid growth in electricity demand, lower levels of financial development, and higher state ownership of coal plants. Addressing these challenges will require tailored approaches and international support to ensure a just and equitable transition.
Role of Renewable Energy and Clean Technologies
Accelerating Renewable Energy Deployment
To achieve the ambitious goal of decarbonizing their power sectors by 2035, the G7 nations have set specific targets for expanding renewable energy sources:
- Offshore Wind Capacity: The G7 aims to increase offshore wind capacity to 150 gigawatts (GW) by 2030.
- Solar Photovoltaic (PV) Capacity: The target is to achieve over 1 terawatt (TW) of solar PV capacity by 2030.
These targets demonstrate the G7’s commitment to rapidly scaling up renewable energy generation, which will be crucial in replacing coal-fired power plants and reducing greenhouse gas emissions.
Enabling Technologies and Infrastructure
Transitioning to a coal-free landscape will require the deployment of various enabling technologies and infrastructure:
- Energy Storage Systems: Integrating large-scale renewable energy sources into the grid necessitates energy storage solutions, such as battery storage and pumped hydro storage, to balance intermittent supply and demand.
- Smart Grid Technologies: Advanced metering infrastructure, grid automation, and demand response systems will be essential for managing the complexities of a decentralized, renewable-based power system.
- Transmission and Distribution Upgrades: Modernizing and expanding the transmission and distribution networks will be crucial to accommodate the integration of renewable energy sources and facilitate the efficient transfer of electricity across regions.
Clean Energy Innovation
Achieving a coal-free landscape by 2035 will also require continued innovation and advancements in clean energy technologies:
- Next-Generation Renewable Technologies: Research and development efforts are underway to improve the efficiency, cost-effectiveness, and scalability of renewable energy technologies, such as advanced solar cells, offshore floating wind turbines, and marine energy systems.
- Carbon Capture, Utilization, and Storage (CCUS): While the G7 aims to phase out unabated coal power, CCUS technologies could play a role in mitigating emissions from hard-to-abate sectors, such as heavy industry and certain power generation applications.
- Green Hydrogen: Producing hydrogen from renewable sources could provide a clean energy carrier for various applications, including energy storage, transportation, and industrial processes.
Enabling Policies and Financing
To facilitate the widespread adoption of renewable energy and clean technologies, supportive policies and financing mechanisms will be essential:
- Renewable Energy Incentives: Policies such as feed-in tariffs, tax credits, and renewable portfolio standards can incentivize investment in renewable energy projects and accelerate their deployment.
- Carbon Pricing and Emissions Trading: Putting a price on carbon emissions through carbon taxes or emissions trading systems can make renewable energy more cost-competitive and drive investment towards low-carbon technologies.
- Green Finance: Mobilizing public and private financing for renewable energy projects, clean technology research and development, and infrastructure upgrades will be crucial in facilitating the energy transition.
The G7’s commitment to a coal-free landscape by 2035 presents both challenges and opportunities for the accelerated deployment of renewable energy and clean technologies. Achieving this ambitious goal will require concerted efforts, innovative solutions, and supportive policies from all G7 nations.
Conclusion
The G7’s commitment to phase out coal power generation and achieve a predominantly decarbonized power sector by 2035 marks a significant milestone in the global effort to combat climate change. By setting ambitious targets for renewable energy deployment, particularly in offshore wind and solar photovoltaic capacity, the G7 nations are paving the way for a transition to a cleaner, more sustainable energy future.
While challenges exist, including energy security concerns, implementation hurdles, and the need for broader international participation, the G7’s leadership in this endeavor is crucial. Supportive policies, financing mechanisms, and continued innovation in clean technologies will be instrumental in facilitating this transition and ensuring a just transition for affected workers and communities. The coal-free landscape envisioned by the G7 represents a critical step towards achieving the goals of the Paris Agreement and mitigating the impacts of climate change.
