War fuels gas-friendly scheme

‘The German chancellor promised a crucial boost for international climate action and he didn’t deliver’

G7 LEADERS watered down a key pledge on ending fossil fuel funding abroad amid concern over energy shortages after the invasion of Ukraine.

State investment in new international fossil fuel projects is to be allowed under certain conditions, leaders agreed, as countries face a scramble to source fossil fuels in the absence of Russian oil, coal and gas.

Climate groups criticised the decision, which was made after three days of negotiations.

The text reiterated previous pledges that G7 nations will halt new public investments in overseas fossil fuel projects by the end of the year. However, given the “exceptional circumstances” of the Ukraine war, “publicly supported investment in the gas sector can be appropriate as a temporary response”, it added.

Observers said Germany and Italy, both heavily reliant on Russian energy, had pushed hard for the amended text.

Like other European countries, they are racing to stockpile gas before winter and diversify suppliers as they brace for Russia to turn off the energy taps altogether after it slowed deliveries.

Germany has already decided to reactivate mothballed coal-fired plants to offset the shortfall and is considering a new gas project in Senegal.

Mario Draghi, the Italian prime minister, said: “We don’t want to go back on our commitments. Even though we access new sources of gas supply, these are replacing Russian sources.”

Friederike Roder, vice-president at the non-profit group Global Citizen, said Olaf Scholz, the German chancellor, “promised a crucial boost for international climate action and he didn’t deliver”.

An alliance of civil society organisations including Oil Change International also condemned the “loopholes” on gas that appeared in the final communiqué.