G7 Summit ? De-risking and Climate Wishlist

G7 Summit – De-risking and Climate Wishlist

News: The 49th annual summit (Hiroshima, Japan) of the G7 leaders concluded recently.
 

What is G7 grouping?
 The G7 is an informal grouping of seven of the world's advanced economies, including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union.

Key Highlights:
 G7 countries said that they would build economic resilience for themselves, based on a strategy of diversifying and deepening partnerships and de-risking, not decoupling.
 Member countries also listed key milestones in their climate Wishlist in response to ongoing studies and reports that continue to raise alarms about the worsening state of climate change, urging immediate action.

What is De-Risking? Why was it used by G7 countries?
 De-risking essentially means to move business away from areas that are considered risky in terms of the returns they could generate. It will have resilient, effective supply chains to prevent coercion of any other country.
 The term was used to describe their stance towards China on economic matters.
 It can be interpreted as a reduction of the reliance on China in the economic sphere – for the supply of materials or as a market for finished goods, so that potential risks to trade and disruption of supply chains are reduced.

G7 countries and Climate Wishlist:
 The G7 does not set a specific deadline for ending fossil fuel use but commits to accelerating the phase-out of 'unabated fossil fuels' in line with 1.5 degree Celsius trajectories. They aim to eliminate 'inefficient fossil fuel subsidies' by 2025 or earlier without specifying the definition of 'inefficient subsidies.'
 The G7 reiterates its commitment to achieve net-zero status by 2050 and urges other major economies to do the same. The world as a whole must become net-zero by mid-century to meet the 1.5-degree Celsius target.

Challenges:
 G7 countries account for 20% of global emissions but have not effectively fulfilled their pledges.
 Lack of sufficient and consistent actions to align with the 1.5-degree Celsius and 2-degree Celsius temperature goals.
 G7 member countries Failure to update nationally determined contributions (NDCs) Paris Agreement targets.
 G7 countries have been slow and insufficient in providing climate finance to developing nations agreed under the Paris Agreement targets.