Departing sharply from the official G7 position on new fossil fuel investment in third countries, Germany and Italy expressed support for a review of this position.
Bloomberg first reported last weekend that Germany had suggested the G7 countries lift their self-imposed ban on fossil fuel investment in non-G7 countries at the seven-nation meeting that started on Sunday in Germany.
A draft proposal cited by Bloomberg said the G7 should “recognize that state-backed investment in the gas sector is needed as a temporary response to the current energy crisis.”
The project added that this should be done “in a way that is consistent with our climate goals and without creating lock-in effects”.
Reuters later reported that Italian Prime Minister Mario Draghi had also come out in favor of such recognition, adding that delegates at the meeting were debating whether to lift the self-imposed ban without jeopardizing net zero commitments. .
“(It is) possible that there is language in the declaration that investment in fossil fuels should be possible for a certain period of time,” a European Union diplomat was quoted by Reuters as saying.
The proposal comes as European economies urgently seek to replace Russian hydrocarbons with alternative sources in order to keep operating.
However, environmentalists immediately hit back at the suggestion.
“It would be a huge setback to the progress we made last month at the G-7 energy and environment ministers when we finally brought Japan, the last holdout from the G-7, to s to end this financial support for fossil fuels,” Alden said. Meyer, senior associate at climate think tank E3G, told Bloomberg.
“Where we saw Chancellor Merkel being the climate chancellor at the last G-7 summit hosted by Germany, Scholz could go down in history as climate chancellor, which I think would be a real mark on its balance sheet, and we don’t need to do that,” he also said.
By Irina Slav for Oilprice.com
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