The Group of Seven have decided to begin phasing out financing for coal projects as well as subsidies for the fossil fuel sector, in an effort to further align with global climate targets.
According to a statement seen by Bloomberg, the world’s seven largest economies have agreed to halt international financing for coal projects by the end of 2021, while cutting back on subsidies slated for the fossil fuel industry by 2025. The statement was endorsed on Friday by G-7 environmental and climate ministers, in an effort to coincide their government policies with meeting global temperature targets of 1.5°C.
As per the agreement, international financing for the energy producing sector will aligned with the global goal of reaching net zero greenhouse gas emissions before 2050. In addition, the G-7 members will also commit to “deep emission reductions in 2020s.”
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The latest G-7 pledge is expected to be a diplomatic achievement for the UK, which is hosting the summit and subsequent climate discussions later this year. In the past, the G-7 members have attempted to curtail inefficient fossil fuel subsidies, but were unable to come to a consensus on a variety of crucial details.
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