G7 reaffirms commitment to $100 billion for ‘green transition’

The G7 released a statement this Friday (3) about the plans of the initiative Build Back Better global, which intends to carry out a series of investments around the world with a view to tackling climate change and achieving a green transition.

According to the document, “low- and middle-income countries need to expand investment in infrastructure to tackle climate change and support their transition to zero net emissions”, and to that end, the group of seven most industrialized nations commits to strengthening their partnerships.

In practical terms, the communiqué reaffirms the intention to mobilize US$ 100 billion for these nations, something defined during the last G20 meeting in Rome. According to the document, the allocation of funds could occur through voluntary channeling of Special Drawing Rights (SPR, its acronym in English).

“To that end, we support the call for the establishment of a new Resilience and Sustainability Fund at the International Monetary Fund (IMF),” says the G7.

Another intention of the G7, according to the communiqué, is to get involved in efforts aimed at the possible adhesion of all G20 countries to the Anti-Bribery Convention of the Organization for Economic Cooperation and Development (OECD).

A major initiative, agreed upon during COP26, calls for the allocation of US$8.5 billion over the next three and five years for investments in clean energy in South Africa.

Backed by France, Germany, the United Kingdom, the United States and the European Union, the Fair Transition Partnership aims to support the country “to decarbonise its economy, move away from coal and move towards a low-emission, climate-resilient based economy. in clean and green energy and technology”, highlights the document.

In general terms, the document envisages cooperating “to assess and define the best conditions for mobilizing private financing, in line with the objectives of the Paris Agreement”.