Industry Groups Urge G7 Nations to Align Climate Ambitions – BDI By Reuters

FRANKFURT – The G7 economic powers are encouraged to align their international climate protection goals with a proposed "climate club" introduced by German Chancellor Olaf Scholz, according to the head of the Business 7 (B7) group representing industry lobbies.

A joint statement by B7 members, which was shared on the first day of a three-day meeting of G7 environment, climate, and energy ministers in Berlin, emphasized this alignment. The statement was presented by the German Federation of Industry (BDI).

Chancellor Scholz suggested this concept to mitigate trade tensions regarding green tariffs, the development of decarbonized product markets, carbon pricing, and carbon removal techniques.

Siegfried Russwurm, President of the BDI and B7, expressed support for an "open and ambitious climate club," urging the G7 to define its potential contributions to this initiative.

The B7 represents the leading business and industry federations of the G7 countries and was established in 2007 on the initiative of the BDI.

The group aims to reach a mutual understanding regarding what defines "green" raw materials, such as steel and cement. Furthermore, it views energy supply security and diversification as crucial, especially in light of the ongoing war in Ukraine and the risk of Russia halting pipeline shipments to Europe.

The B7 is advocating for expedited alternative shipments of liquefied natural gas (LNG), a swift expansion of renewable energy sources, and the development of hydrogen as a gas substitute.

It is imperative for G7 nations to coordinate efforts in promoting low carbon hydrogen economies and to enhance the infrastructure necessary for their transport and distribution.

This year, Germany holds the G7 presidency, with federal environment minister Steffi Lemke and federal economy minister Robert Habeck serving as hosts for the gathering from May 25-27.