3 climate strategies for the G7. And for the wider world. Fossil fuels, Climate Club and CO2 Price.

Today May 19 starts another 3-days G7 Meeting, in Hiroshima, Japan . Besides the usual members - Japan, United States, Canada, United Kingdom, France, Germany, Italy (European Union) - other 8 countries were invited this time: Brazil, India, Indonesia, Republic of Korea, Australia, Vietnam, Comoros and Cook Islands

(Talking about Japan, in the coming days we will post about Carbon Credit Market's participation and contents of the 10 May meeting "1st Tracking Working Group of Article 6 Implementation Partnership", led by the Ministry of the Environment Government of Japan)

But for now we go briefly over comments by the Prof. Dr. Edward B. Barbier from the Department of Economics, Colorado State University, posted last Tuesday on a Nature article, where he elaborates a 3-part strategy to greening the G7. Basically:

• Remove market distortions favouring fossil fuels

• Foster a more-inclusive version of the Climate Club

• Help developing economies to decarbonize

Renewables would need more attention by G7, as market distortions favouring fossil fuels remain, such as incentives for production, write-offs and tax deductions and subsidies (i.e. forgone tax revenue). Artificially depressed prices deter fast growth of low-carbon energy, not to mention the environmental and health impacts on people.

Levies on goods, on the basis of their embodied carbon emissions, are also being considered. With the aim to decarbonize industries, such as cement, chemicals, iron and steel, while protecting these industries from competition in countries that have not adopted similar initiatives.

That would mean 3 steps to be taken:

• phase out all subsidies for consuming and producing fossil fuels over the next five years

• phase in more-comprehensive carbon-pricing mechanisms

• direct the revenues raised towards green priorities, including investments in clean-energy R&D and infrastructure

About the Climate Club, the author proposes a minimum carbon price for participants (and penalties on countries that don’t participate). Recall here our article from last year's Boxing Day, December 26, "IMF chief says $75/ton carbon price needed by 2030" (US$25 for low-income countries, US$50 for middle-income and US$75 for high-income)

Last but not least, G7 needs to be clear and not delay with its assistance for developing economies to decarbonize,

Click at the image below for the article, which is full of great references to other studies and materials.

#energy

#future

#carbonpricing