At the ongoing summit in Germany, the Group of Seven (G7) has announced their goal to establish an international climate club by the end of this year. The idea, driven by German Chancellor Olaf Scholz, is to be built on three key pillars to accelerate climate action and increasing ambition, supporting the effective implementation of the Paris Agreement and reducing emissions. The first pillar aims to advance ambitious and transparent climate mitigation policies to reduce the carbon intensities of participating economies by making policies and outcomes consistent with member ambitions, strengthening measurement and reporting mechanisms, and countering carbon leakage at the international level. Members will be expected to share best practice in assessing the effectiveness and economic impacts of mitigation policies with ambitions to reduce emissions such as through explicit carbon pricing, other carbon mitigation approaches and carbon intensities. The second pillar aims to transform industries jointly to accelerate decarbonisation, through utilising the Industrial Decarbonisation Agenda, the Hydrogen Action Pact, and expanding markets for green industrial products. The final pillar will boost international ambition through partnerships and cooperation to encourage and facilitate climate action, unlocking the socio-economic benefits of climate cooperation and promoting a just energy transition. This will be complemented by Just Energy Transition Partnerships (JETPs), offering support and assistance to developing countries for decarbonising energy and industrial sectors through financial, technical capacity support and technology transfer development and deployment depending on their level of climate ambition.
We agreed in Elmau to establish the #ClimateClub by the end of the year. Our goal is to bring together the various political approaches. #ClimateProtection should become a competitive advantage so that more and more countries want to join.
— Bundeskanzler Olaf Scholz (@Bundeskanzler) June 28, 2022