G7's Commitment Towards Carbon-free Electricity Production

• G7 nations met for two days in the northern Japanese city of Sapporo to discuss climate, energy, and environmental policies.

• Following Russia's invasion of Ukraine, the need for energy security and renewable fuel sources has grown more urgent.

• The climate and energy ministers and envoys of the Group of Seven (G7) nations have committed to accelerating the phase-out of coal and securing carbon-free electricity production by 2035. Prior to the G7 summit in Hiroshima, Japan, in May 2023, the agreement was made in Sapporo, Japan.

• In light of its G20 chairmanship, India was also invited to the summit as a "guest".

Key highlight

• The accord asks for expediting the transition to renewable energy so that net-zero greenhouse gas (GHG) emissions are achieved by 2050, taking into account the current global energy crisis and economic disruptions.
• The G7 countries emphasised the pressing need to cut GHG emissions by roughly 43% by 2030 and 60% by 2035.
• The participants agreed to speed up investments in solar and wind energy to produce 1,000 gigawatts of solar power and 150 gigawatts of wind power from offshore platforms by 2030, in accordance with the Intergovernmental Panel on Climate Change (IPCC)'s AR6 Report, which reiterates the need to prevent global temperatures from rising by more than 1.5°C above pre-industrial levels by the end of the century.

Other Important Information About Carbon Emissions

• The increase in temperature since the pre-industrial era is already 1.1C.
• The G-7 countries are responsible for 25% of the world's carbon emissions and 40% of the world's economic activity.
• Today, developing nations and emerging markets are responsible for more than two thirds of the world's carbon emissions.
• With more than 40% of the world's enrichment capacity, Russia is one of the biggest exporters of enriched uranium for civilian nuclear programmes.
• In contrast to some developed nations, such as the United States, Japan, Canada, and Europe, which are dependent on gas reserves, India and China are heavily dependent on coal for their electrical needs.

Important Issues that Saw No Concrete Action Include:

• expanding initiatives to support other nations as they step up their energy transition and energy efficiency.
• The wealthy nations' financial contributions continue to fall short of the UNFCCC COP27 commitment of $100 billion annually.
• Proposal from the UK and Canada to phase out coal by 2030.

Issues with India's to phase-out of coal

• High energy dependence: Coal accounts for 57% of India's total energy consumption, and coal demand is not anticipated to peak until the early 2030s.
• Extremely large financial costs are associated with phaseouts; for instance, the German coal phaseout requires expenditure of more than 50 billion euros.
• Richness in resources: According to the Geological Survey of India, India has cumulative coal reserves totaling 319.02 billion tonnes (bt). The economy of states like Jharkhand and Orissa rely on coal mining.
• Impact on tax: In FY20, the Centre alone brought in almost Rs 29,200 crore from coal-related GST compensation cess.
• One research noted that 7,44,984 direct coal employment, excluding contract workers, had been lost.

About G7

• The seven largest advanced economies that make up the Group of Seven (G7) are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
• The G7, formerly the G8 (before Russia was denied entry), was established in 1975 as a loose-knit gathering of world leaders from the most developed economies.

Objectives:

• The main goal of the G7 is to promote stability and economic progress among its member nations.
• It acts as a venue for leaders to talk on matters of shared interest, such as trade, economic policy, and global security.
• The G7 also seeks to encourage coordination and cooperation on topics including global health, poverty alleviation, and climate change.
• Every year, the leaders of the G7 gather for a summit to debate and resolve matters of shared concern.
• Each member nation takes turns hosting the summit as it rotates among them.

Significance:

• Economies in the lead The G7 nations have some of the biggest and strongest economies in the world, accounting for 40% of global economic activity.
• They rank among the top trading nations in the world and have a considerable impact on rules and regulations governing international trade.???????
• International organisations like the United Nations and the World Trade Organisation are significantly influenced by the G7, a key player in global governance.
• The economic and political stability of the world may be significantly impacted by its policies and decisions.

India efforts

• The Pradhan Mantri Ujjwala Yojana assisted 88 million families in switching to LPG connections from coal-based cooking fuels.
• The mission of hydrogen energy is to concentrate on producing hydrogen using renewable energy sources.
• E-vehicle: With the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME Scheme), India is quickening its transition to e-mobility.
• The phase-out of old and unfit automobiles through a vehicle scrapping strategy complements the programmes already in place.
• Perform, Achieve, and Trade (PAT) is a market-based method to expedite and reward energy efficiency in the major energy-intensive industries.
• GEC: Green Energy Corridor synchronising India's national transmission network with grid-connected renewable energy.