G7 Summit 2022 - Insights and Expertise from Germanwatch

Germany’s G7 presidency is coming to an end, and the next Leader’s Summit in Hiroshima on May 19-21 is approaching fast. This means that there is little time left for the G7 to make tangible progress on the climate and energy agenda. In our policy brief, we outline the key issues for the G7's climate and energy agenda in Hiroshima and make recommendations on how Japan can advance the agenda in 2023.

This policy brief first summarises energy-related outcomes of the AU-EU summit, including the Global Gateway Investment Package for Africa, then analyses corresponding risks and opportunities, including suggested ways forward. Last but not least, the brief summarises key recommendations for AU-EU cooperation on energy.

In their joint open letter, Germanwatch, Bread for the World, Friends of the Earth Germany, Misereor, DNR, WWF, the Climate Alliance, the Heinrich Böll Foundation and Environmental Action Germany appeal to the German government and call for stronger commitment to creating an international hydrogen market that is compatible with sustainable development and supports the just energy transition in partner countries.

In May 2022, the G7 environment, climate, and energy ministers announced the launch of the G7 Hydrogen Action Pact (G7-HAP), which prioritises six areas for the G7 to support the development of a global low-carbon and green hydrogen market. Germany should use its remaining G7 presidency to specify these areas. Most importantly, the G7 should clearly focus their activities on green hydrogen and work on establishing sustainability standards right at the beginning of the market ramp-up.

The Just Energy Transition Partnership (JETP), announced last year with South Africa, aims to reduce emissions in the energy sector and accelerate the coal phase-out process. The partnership, first announced in COP26 with the promised value of 8.5$ billion, was then followed by a G7 announcement for a similar partnership in India, Indonesia, Senegal, and Vietnam. As an important thread in the social fabric of many countries, it is crucial for CSOs to be involved in providing input and monitoring the partnership process, especially as Indonesia and India are preparing their own JETP.

The German government planned on making climate and sustainability the main topics of its G7 presidency. In this briefing, we outline what the G7 Leaders’ Summit was able to achieve, which gaps remained, and where to go from there.

At the forthcoming G7 Ministerials this week and next, Germany should push for stronger joint efforts to exit international fossil fuel financing. Considering the latest IPCC findings and the urgent need to stop investment in coal, oil and gas, the financial activities of public finance institutions (PFIs) play an important role to achieve the goals of the Paris Agreement. This paper analyses the alignment of German and Korean PFIs’ climate and sector strategies with the Paris Agreement and makes recommendations on how their strategies can align with a 1.5°C goal.