CDP comment on G7 summit

Speaking ahead of the G7 summit in Hiroshima, Pietro Bertazzi, Global Director for Policy Engagement and External Affairs at CDP said: “It’s critical that the G7 seize this opportunity to demonstrate real leadership. Last month, the G7 committed to accelerate the phase-out of unabated fossil fuels in line with 1.5C, a promise to be celebrated and an ambition to be expanded globally as we look to COP28. It’s time to make it happen by ending public financing for fossil fuels in 2023.

It is imperative that G7 Leaders move toward implementation and consider the policy options to support their commitment on the fossil fuel phase-out: ensuring holistic policy support for renewable energy, investment into low carbon technologies, improved funding processes, and credible standards and certification that align with global standards. New CDP data shows that most G7 companies are still facing challenges in scaling clean energy that require action from governments.

While 69% of Japanese companies report details of their energy consumption through CDP, only 18% report targets to increase their low-carbon energy consumption or production. 58% of German companies report details of their energy consumption through CDP, however only 21% report targets to increase low-carbon energy consumption or production. Companies in Japan report a renewable energy share of just 4% of their total energy – much lower than the G7 average of 15%.

The G7 last month highlighted the importance of mandatory climate-related financial disclosures within and beyond G7 jurisdictions. While this statement was welcome, climate related financial disclosure requirements should be seen as a starting point. G7 disclosure requirements must consider climate but also set clear timeframes for addressing broader issues of environmental integrity, as agreed to in target 15 of the Global Biodiversity Framework. There is no time to waste, if governments are to meet their 2030 commitments. Furthermore, G7 requirements must include sustainability-related financial disclosures as well as impacts on people and planet.”