ust a few short weeks ago, during the G7 Ministers’ Meeting on Energy, Climate and Environment, officials from several of the world’s most powerful countries came together to track their progress in reducing greenhouse gas emissions and expanding clean energy resources. While the tone around this high–level gathering was overwhelmingly positive, capped off by a collective pledge to end the use of unabated coal power plants in G7 countries between 2030 and 2035, there remained a key issue that undermined the group’s position as leaders of the global energy transition.
Despite the individual successes of G7 members and other developed economies, global carbon dioxide emissions from energy rose yet again to a new high in 2023. Meanwhile, nearly 75% of the energy consumed in 2024 was derived from fossil fuels, meaning that renewables and clean energy sources still represent a small percentage of our current energy mix. These figures underscore the fundamental reality of the energy transition: It is a collective effort, and so far, the nations leading our international system have been unable, or unwilling, to include all actors in this vital process.
In the last 5 years, the United States and the European Union have undoubtedly made significant strides in decarbonizing their domestic energy systems, with key policies such as the Inflation Reduction Act and the Green Deal driving unprecedented investments in renewable energy infrastructure and emission–reducing solutions. With the aim of transforming the challenges of decarbonization into opportunities to grow new domestic industries, these initiatives have enabled the U.S. and the EU to stay on-track with their laudable environmental goals. However, they remain too inward-looking, and are limited in their ability to affect change on a global scale.
Of course, prioritizing economic development and decarbonization within one’s borders is understandable, as these countries have a primary responsibility to their citizens to ensure a stable and sustainable transition. However, the United States and the European Union also have a responsibility to the entire international community, both as historically the largest emitters of greenhouse gasses and as leaders of an economic system that has produced such massive disparities in wealth and resources.
While the United States and European Union have been able to leverage their well–established economies to steer away from carbon–intensive sectors, many developing countries are currently industrializing, with key domestic industries still heavily reliant on traditional energy resources. In fact, part of the reason advanced economies have succeeded in reducing their emissions is that global manufacturing has largely moved to emerging markets who now account for two–thirds of global emissions.
Meanwhile, these same countries are facing rapid urbanization and burgeoning populations, which require reliable and affordable energy sources to support wide scale electrification and economic development. Unlike members of the G7, these nations must therefore simultaneously address other pressing UN development goals, including poverty alleviation, education, and equal energy access—in Asia and Africa, approximately 800 million individuals live without access to electricity, while nearly 3 billion lack clean cooking fuel.
Within this context, the U.S. and EU’s approach to the energy transition seems destined to do little more than buy time, as avoiding the global climate crisis clearly requires a more holistic and collective effort, not a strict focus on reducing domestic emissions. Moreover, expecting developing countries to follow the example set by the G7 and swiftly phase out the resources which sustain their entire populations and economies is unlikely to bear any fruit, both in the short and medium-term.
Instead, what is needed is for the world’s most powerful to assume true leadership of an equitable energy transition, which recognizes and accounts for the realities of each stakeholder and, in turn, secures their commitment to reduce emissions.
COP28 represented a first step in the right direction, as the conference led to operationalization of the historic Loss and Damage Fund, a financial assistance program aimed at providing support to nations most vulnerable and impacted by the effects of climate change. Amongst the initial countries to announce contributions to the fund were most of the G7, including Germany ($100 million), the UK ($50.6 million equivalent), the United States ($17.5 million), Japan ($10 million),and other European contributions of ($145 million equivalent). In addition, the critically important Green Climate Fund, which accelerates transformative climate solutions in developing countries using flexible financing solutions, received a boost to its second replenishment, with six countries pledging new funding at COP28.
These initiatives place a key emphasis on ownership, enabling developing nations to utilize the much–needed financing for decarbonization projects and technologies that best fit their economic and energy realities. Carbon capture, utilization, and storage (CCUS) has emerged as one such technology, requiring minimal adjustments to existing oil and gas infrastructure while yielding substantial reductions in emissions. According to the IEA, increased accessibility of CCUS for developing countries could help account for nearly 15% of the emissions reduction needed to hit net zero by 2070.
Although G7 countries are well on their way to leading domestic energy transitions and creating profitable green industries, the urgency of the climate crisis necessitates a far bolder effort to drive down emissions across borders and economic divides. For the United States and European Union to assume leadership of a truly committed international system, they will need to unite stakeholders with vastly different priorities and capabilities. Seizing opportunities to align on the specific needs of each country will be integral to this effort, and there will be no shortage of such opportunities this year.
Gastech 2024, hosted in Houston from Sept. 17-20 2024, will gather energy ministers and industry executives for critical discussion about the future of the natural gas and LNG industry, as well as the emergence of groundbreaking climate technologies—both of which are critical to the long-term energy plans of many developing countries. Just a few months later, COP29 will convene world leaders in Azerbaijan to reaffirm their commitment to an equitable and just transition. With such key dates in sight, I should hope the next G7 Ministers’ meeting produces a more ambitious outcome.
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The grave responsibility of leading global climate progress
May 17, 2024
The world’s most powerful must assume true leadership of an equitable energy transition, which recognizes and accounts for the realities of each stakeholder and, in turn, secures their commitment to reduce emissions, writes Amb. Thomas Matussek.
J
ust a few short weeks ago, during the G7 Ministers’ Meeting on Energy, Climate and Environment, officials from several of the world’s most powerful countries came together to track their progress in reducing greenhouse gas emissions and expanding clean energy resources. While the tone around this high–level gathering was overwhelmingly positive, capped off by a collective pledge to end the use of unabated coal power plants in G7 countries between 2030 and 2035, there remained a key issue that undermined the group’s position as leaders of the global energy transition.
Despite the individual successes of G7 members and other developed economies, global carbon dioxide emissions from energy rose yet again to a new high in 2023. Meanwhile, nearly 75% of the energy consumed in 2024 was derived from fossil fuels, meaning that renewables and clean energy sources still represent a small percentage of our current energy mix. These figures underscore the fundamental reality of the energy transition: It is a collective effort, and so far, the nations leading our international system have been unable, or unwilling, to include all actors in this vital process.
In the last 5 years, the United States and the European Union have undoubtedly made significant strides in decarbonizing their domestic energy systems, with key policies such as the Inflation Reduction Act and the Green Deal driving unprecedented investments in renewable energy infrastructure and emission–reducing solutions. With the aim of transforming the challenges of decarbonization into opportunities to grow new domestic industries, these initiatives have enabled the U.S. and the EU to stay on-track with their laudable environmental goals. However, they remain too inward-looking, and are limited in their ability to affect change on a global scale.
Of course, prioritizing economic development and decarbonization within one’s borders is understandable, as these countries have a primary responsibility to their citizens to ensure a stable and sustainable transition. However, the United States and the European Union also have a responsibility to the entire international community, both as historically the largest emitters of greenhouse gasses and as leaders of an economic system that has produced such massive disparities in wealth and resources.
While the United States and European Union have been able to leverage their well–established economies to steer away from carbon–intensive sectors, many developing countries are currently industrializing, with key domestic industries still heavily reliant on traditional energy resources. In fact, part of the reason advanced economies have succeeded in reducing their emissions is that global manufacturing has largely moved to emerging markets who now account for two–thirds of global emissions.
Meanwhile, these same countries are facing rapid urbanization and burgeoning populations, which require reliable and affordable energy sources to support wide scale electrification and economic development. Unlike members of the G7, these nations must therefore simultaneously address other pressing UN development goals, including poverty alleviation, education, and equal energy access—in Asia and Africa, approximately 800 million individuals live without access to electricity, while nearly 3 billion lack clean cooking fuel.
Within this context, the U.S. and EU’s approach to the energy transition seems destined to do little more than buy time, as avoiding the global climate crisis clearly requires a more holistic and collective effort, not a strict focus on reducing domestic emissions. Moreover, expecting developing countries to follow the example set by the G7 and swiftly phase out the resources which sustain their entire populations and economies is unlikely to bear any fruit, both in the short and medium-term.
Instead, what is needed is for the world’s most powerful to assume true leadership of an equitable energy transition, which recognizes and accounts for the realities of each stakeholder and, in turn, secures their commitment to reduce emissions.
COP28 represented a first step in the right direction, as the conference led to operationalization of the historic Loss and Damage Fund, a financial assistance program aimed at providing support to nations most vulnerable and impacted by the effects of climate change. Amongst the initial countries to announce contributions to the fund were most of the G7, including Germany ($100 million), the UK ($50.6 million equivalent), the United States ($17.5 million), Japan ($10 million),and other European contributions of ($145 million equivalent). In addition, the critically important Green Climate Fund, which accelerates transformative climate solutions in developing countries using flexible financing solutions, received a boost to its second replenishment, with six countries pledging new funding at COP28.
These initiatives place a key emphasis on ownership, enabling developing nations to utilize the much–needed financing for decarbonization projects and technologies that best fit their economic and energy realities. Carbon capture, utilization, and storage (CCUS) has emerged as one such technology, requiring minimal adjustments to existing oil and gas infrastructure while yielding substantial reductions in emissions. According to the IEA, increased accessibility of CCUS for developing countries could help account for nearly 15% of the emissions reduction needed to hit net zero by 2070.
Although G7 countries are well on their way to leading domestic energy transitions and creating profitable green industries, the urgency of the climate crisis necessitates a far bolder effort to drive down emissions across borders and economic divides. For the United States and European Union to assume leadership of a truly committed international system, they will need to unite stakeholders with vastly different priorities and capabilities. Seizing opportunities to align on the specific needs of each country will be integral to this effort, and there will be no shortage of such opportunities this year.
Gastech 2024, hosted in Houston from Sept. 17-20 2024, will gather energy ministers and industry executives for critical discussion about the future of the natural gas and LNG industry, as well as the emergence of groundbreaking climate technologies—both of which are critical to the long-term energy plans of many developing countries. Just a few months later, COP29 will convene world leaders in Azerbaijan to reaffirm their commitment to an equitable and just transition. With such key dates in sight, I should hope the next G7 Ministers’ meeting produces a more ambitious outcome.
