Commodities

G7 Ministers May Pledge to Phase Out Coal and Decarbonize Power – Draft by Reuters

By Kate Abnett

BRUSSELS – Climate ministers from the Group of Seven (G7) economic powers are set to discuss proposals this week that aim to eliminate coal-fueled energy by 2030 and decarbonize their power sectors by 2035, based on a draft communique obtained by Reuters.

The ongoing invasion of Ukraine by Russia, a major fossil fuel exporter, has prompted several nations to seek alternative non-Russian fossil fuels, leading to an increase in coal consumption to reduce dependence on Russian gas. This shift has raised concerns that the energy crisis exacerbated by the conflict could hinder global climate change initiatives.

G7 climate, energy, and environment ministers will convene in Berlin from Wednesday to Friday to establish commitments that balance their immediate response to soaring energy prices and supply anxieties with long-term goals for reducing greenhouse gas emissions that contribute to global warming.

The draft communique specifies a commitment to phase out domestic unabated coal power generation and non-industrial coal-powered heat generation with a target year of 2030. The term "unabated" refers to power plants that do not employ technology to capture and mitigate emissions.

Additionally, the draft describes a goal for G7 nations to achieve a "net zero electricity sector by 2035" and to begin publicly reporting next year on efforts to fulfill a previous G7 commitment to terminate "inefficient" fossil fuel subsidies by 2025.

However, the draft may undergo revisions before its expected adoption on Friday. Sources familiar with the discussions have indicated that both Japan and the United States may not support the proposed coal phase-out timeline.

A representative from Japan’s industry ministry, responsible for overseeing local power generation infrastructure, refrained from commenting directly on the G7 negotiations. The official highlighted that Japan’s objective to reduce the share of coal in its electricity mix to 19% by 2030, down from 32% in 2019, would conflict with the proposed coal phase-out by 2030.

U.S. officials did not immediately respond to inquiries for comment.

Coal is the fossil fuel with the highest CO2 emissions, and experts assert that its global usage must drastically decline to effectively manage emissions and mitigate the severe consequences of climate change.

While all G7 nations utilize coal power, the extent of its use varies, being more significant in Germany, Japan, and the United States compared to Canada, France, Italy, and the United Kingdom.

Germany and Canada have committed to phasing out coal by 2030, while France, Italy, and the UK intend to do so even earlier. In contrast, the United States and Japan have yet to establish specific timelines; however, the U.S. government’s goal of decarbonizing the power grid by 2035 suggests that coal plants would either be decommissioned or required to implement carbon capture technology by that year.

If an agreement on these targets is not reached among the ministers, the discussions may be referred to national leaders, who could pursue a consensus at a G7 summit scheduled for June.

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