Cheers! ‘Climate backtracking’: Germany Pushes for G-7 Reversal on Fossil Fuels in Climate Blow

From Climate Depot

Bloomberg News: “Pledge to end public financing of such fuels came recently.” – Germany is pushing for Group of Seven nations to walk back a commitment that would halt the financing of overseas fossil fuel projects by the end of the year, according to people familiar with the matter. That would be a major reversal on tackling climate change as Russia’s war in Ukraine upends access to energy supplies. … 

A G-7 shift from a commitment initiated last year and firmed up in May would be a u-turn in global efforts to fight climate change. It would make it harder to rally the rest of the world around more stringent targets and direct investments toward cleaner sources of energy. It would also go against International Energy Agency advice that no new oil and gas projects should be developed if the world is to limit global warming to 1.5 degrees Celsius.

By: Admin – Climate Depot

June 25, 2022 1:38 PM

https://www.bloomberg.com/news/articles/2022-06-25/germany-pushes-for-g-7-reversal-on-fossil-fuels-in-climate-blow

By Alberto Nardelli, Chiara Albanese, and Jess Shankleman

Germany is pushing for Group of Seven nations to walk back a commitment that would halt the financing of overseas fossil fuel projects by the end of the year, according to people familiar with the matter. That would be a major reversal on tackling climate change as Russia’s war in Ukraine upends access to energy supplies.

A draft text shared with Bloomberg would see the G-7 “acknowledge that publicly supported investment in the gas sector is necessary as a temporary response to the current energy crisis.”

The caveat in the proposal is that such funding is done “in a manner consistent with our climate objectives and without creating lock-in effects.”

The text remains under debate and could change before G-7 leaders hold their summit in the Bavarian Alps starting Sunday hosted by Chancellor Olaf Scholz. The UK opposes the proposal, two of the people said. A German government spokesman declined to comment.

EU Leaders Brace for Hard Winter as Russia Tightens Gas Grip

A person familiar with the discussions said Italy wasn’t actively opposing the German proposal. Italy, like Germany, is highly dependent on Russian gas. On Friday, speaking during a press conference in Brussels, Prime Minister Mario Draghi said Italy has managed to reduce Russian gas imports from 40% last year to 25% at the moment. This has been possible also by signing new gas deals in countries including Congo, Algeria and Angola.

…

Germany has responded to the cuts by reviving coal plants and providing financing to secure gas supplies, while continuing with plans to phase out nuclear energy. The World Nuclear Association, an industry lobby group, is urging the G-7 to boost access to nuclear technologies.

Germany Warns of Lehman-Like Contagion From Russian Gas Cuts

Italy has said it will monitor the potential need to trigger emergency energy plans. Any such move could also see it boost coal production.

A G-7 shift from a commitment initiated last year and firmed up in May would be a u-turn in global efforts to fight climate change. It would make it harder to rally the rest of the world around more stringent targets and direct investments toward cleaner sources of energy.

It would also go against International Energy Agency advice that no new oil and gas projects should be developed if the world is to limit global warming to 1.5 degrees Celsius. 

…

“Where we saw Chancellor Merkel being the climate chancellor at the last G-7 summit Germany hosted, Scholz could go down in history as the climate backtracking Chancellor, which I think would be a real mark on his record, and we don’t need to do this,” he added.

— With assistance by Michael Nienaber, Isis Almeida, Jenny Leonard, Josh Wingrove, and Brian Platt