G7 Summit and Climate Crisis

The most important implication of G7 large economies summit and United Nations Climate Change Conference held in Bonn is that everyone is in agreement about creating funds for clean energy transition in the developing countries, reaching Paris Convention goals and limiting global warming to 1.5 C degrees. The most important issue that the richest economies in the world were not in agreement at the G7 summit, however, was the amount of funds and where they would come from...

In this blog post, we will take a look at the main takeaways from G7 summit, how developing countries rely on climate financing and the challenges faced by rich countries.

Significant Takeaways from G7

We can summarize the most significant takeaways from G7 as follows:

1. It is impossible to limit global warming to 1.5 C degrees without reducing the utilization of fossil fuels.
2. Transitioning to green energy from fossil fuels requires a large amount of financial support for developing countries.
3. Other summits were planned for climate financing that would enable global transitioning to sustainable energy from fossil fuels.
4. Although the leaders of G7 group consisting of rich democracies confirmed their commitments to moving away from fossil fuels, they did not provide the details of their action plans.
5. Rich countries’ turning their statements into implementation plans and providing funds for developing countries will determine the success or failure of climate efforts.

Developing Countries Rely on Climate Financing

Developing countries await financial support from developed countries to join the global climate fight and to build their economies on clean energy.

As Adonia Ayebare, the Ugandan negotiator, said to Carbon Brief, "There will be no difference in the perspective of a developing country without funds. This is included in the Paris Convention we signed. We agreed on this, so we should do this.”

The new report of the International Energy Agency (IEA) shows that investments into clean energy technologies are about to exceed $2 trillion. However, the problem is that these investments are concentrated in a few developed countries and China. As IEA indicates by referring to emerging markets and developing economies (EMDE), "Clean energy investments should be doubled across the world and quadrupled in emerging markets, except China, and developing economies by 2030 in order to reach COP 28 goals.’’

Donor Countries Face Challenges in Their Own Countries

Rich countries responsible for investment in transitioning to sustainable energy from fossil fuels and most of the funds are having difficulty in fulfilling their existing commitments. They were only able to fulfil $100 billion climate financing commitments in 2022 with a two-year delay.

And the dire point is that donor countries providing funds focusing on their political elections increases uncertainty. At EU elections, for example, populist parties that oppose the Green Deal’s climate policies gain victories. France’s President Emmanuel Macron and German Chancellor Olof Schultz's parties suffered great losses, and both were stripped from their financial authorities.

As a result, the negotiations which were expected to lay ground for constructive discussions at COP 29 to be organized in November 2024 at Baku ended without showing much beyond the deepening anger between developed and developing countries.

A new approach would be required not only in the negotiations, but also in practice in order to reach the goal. The main issue is trust. These forums aim to build equality in the joint reaction we give to climate crisis. And this means to go beyond talking and really implementing the innovative ways to put funds in motion.

What To Do?

1. Climate Financing

Trillions of dollars are required annually to get rid of global economy’s dependency to fossil fuels by 2030.

2. Reducing Greenhouse Gas Emissions

If there will be a way to limit global temperature increases over 1.5 C degrees from pre-industrial levels - as most of the scientists indicate that this is still possible although they do not believe that it will be realized - greenhouse gas emissions are required to be cut in half by the end of the next decade. Despite the record-breaking increase in renewable energy facilities, the world still utilizes fossil fuels in majority.

3. Geopolitical Justice

The impact of rich countries which cause the majority of the world’s turbulent political atmosphere and climate crisis on the world in poverty should be paid off.

4. Loss and Damage Funds

The impact of climate crisis on the countries in poverty becomes increasingly obvious in the shape of destructive floods, long-lasting droughts and extreme storms. However, discussions on how to help the countries with the cash they need to save and rehabilitate communities impacted by disasters should be restarted. - “Loss and damage funds” should be created.

5. The Responsibility of Fossil Fuel Sector

Only the biggest five private sector oil companies in the world gained an estimated $280 billion profit in the two years following the start of the war in Ukraine in February 2022 and they still earn big amounts despite the decrease in prices. Therefore, either the productions that continue to cause climate crisis should be reduced or the profits of these companies should be used to help countries in poverty which are in the grip of climate chaos.

Climate Crisis and Climate Justice

Climate crisis is an urgent issue that threatens humanity with its impacts such as globally increasing temperatures, extreme weather events and rising sea levels. And climate justice argues that a more just manner is required to deal with the poor and defenseless communities which cause the less load of this crisis but are impacted the most from it. Climate justice requires developed countries to accept their historical responsibilities and to provide the financial and technological support needed by the developing countries to tackle climate change. This is critical to reduce global inequalities and to build a more sustainable future.

G7 big economies summit and the United Nations Climate Change Conference held in Bonn had the potential of being a critical milestone in the fight with global climate crisis. A joint approach was developed to provide support to the transition to clean energy in developing countries and to reach the Paris Convention goals. However, uncertainties regarding the amount and sources of funds were one of the biggest challenges that inhibited progress.

The main takeaways from the summit include the need to reduce fossil fuel utilization, the need of developing countries to financial support for transitioning to green energy and planning other summits for climate financing. The determination of rich countries to turn their commitments into actions and to provide funds will be determinant in the success of climate efforts.

Developing countries are rightfully angry with the damage caused by emissions and they are waiting for funds to transition into clean energy. Although the report of the International Energy Agency (IEA) shows an increase in the investments made for clean energy technologies, the concentration of these investments in developed countries is not enough for a global transformation.

Rich countries are having trouble in fulfilling their existing commitments and political elections increase uncertainty. The negotiations to be done at COP 29 to be held in Baku in November 2024 will need to progress on constructive ground, trust will need to be established and innovative approaches will need to be developed in terms of climate financing.

Getting rid of fossil fuel dependency in the global economy, reducing greenhouse gas emissions, ensuring geopolitical justice, creating loss and damage funds and attributing responsibility to the fossil fuel sector are critical steps to resolve climate crisis. It will be a critical milestone for our planet’s future for G7 countries to show leadership and proceed with concrete actions.