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07 December 2023

G7 calls for investment to fight climate change

By Agencies


Finance chiefs of the Group of Seven rich nations on Saturday called for investment in developing countries to help them fight climate change and worked on plans for a World Bank-style fund.
Finance ministers and central bank chiefs, in a joint statement after talks in Tokyo, said they hoped to "scale up investment in developing countries to support them in joining international efforts to address climate change."
The United States, Japan and Britain have proposed setting up a multilateral fund involving the World Bank that would administer global aid and investment to help nations fight slash greenhouse gas emissions blamed for global warming.
The three countries discussed the multi-billion-dollar initiative with Canada, France, Germany and Italy, the other four members of the Group of Seven, a G7 joint statement said.
The initiative would include "a fund that complements existing bilateral and multilateral efforts in providing financial support for the deployment of clean technologies in developing countries," it said.
The United States and Japan, the world's two largest economies, have been particularly vocal in supporting market measures to curb greenhouse gas emissions causing global warming.
"Finance ministers have major roles when it comes to talking about climate and carbon emissions," US Treasury Secretary Henry Paulson told a press conference after the talks.
"There is clearly a role for a fund that is aimed and focused at technology and technology adoption and the developing market, because there is no chance of resolving this problem unless we accelerate the use of clean technology and come up with incentives for the private sector," Paulson said.
The United States is the only major developed economy to reject the Kyoto Protocol, arguing that the landmark environmental plan is unfair as it makes no demands on fast-growing emerging economies.

Japan, while it is the home of the Kyoto Protocol, is far behind in meeting its own requirements due to an economic recovery. It hopes to use foreign assistance as a way to carry out future commitments.

The G7 statement said that "market-based policies, which include taxes and emission trading, will become increasingly important in combating climate change."
"They should be designed to meet specific conditions in each country," it said.
Paulson and his Japanese and British counterparts, Fukushiro Nukaga and Alistair Darling, called Friday in a joint appeal for other countries to join the climate change fund.

"To be large enough to have a meaningful impact, the fund will require the support of other governments," they wrote in the Financial Times. (AFP)