G7 regresses on climate as it pleads for more oil output

The world's richest countries are backsliding on climate promises, putting the short-term imperative of skyrocketing fuel prices ahead of their longer-term goals of reducing the amount of energy generated from fossil fuels.

“The world has taken a dramatic turn,” Environment Minister Steven Guilbeault said in a teleconference from Berlin Friday, following a meeting with his counterparts from the G7 countries.

“(Russian President) Vladimir Putin's brutal and illegal war has caused countries to take a hard look

at their approach to climate change and energy,” said Guilbeault, adding that “there was no deviation from our collective climate goals, and in fact, we strengthened our resolve.”

In the final communiqué, the group of energy and environment ministers committed to tackling the “triple global crisis” of climate change, pollution and biodiversity loss. However, following dozens of pages of climate commitments to biodiversity, sustainable agriculture, carbon pricing, and clean energy, the ministers suddenly changed their tack: Right now, they said, the world needs more oil.

“We note with grave concern the burden (the war in Ukraine) creates for households, in particular for low-income households, as well as businesses and industry, in G7 countries and beyond,” the communiqué read.

The ministers pleaded with the Organization of Petroleum Exporting Countries (OPEC) to pump more oil, writing, “We call on oil and gas-producing countries to act in a responsible manner and to respond to tightening international markets ... We will work with them and all partners to ensure stable and sustainable global energy supplies.”

In the communiqué, the energy ministers acknowledged the contradictions inherent in their appeal for increased oil production, but insisted that it would be temporary.

“We aim for our relief measures to be temporary and targeted and we reaffirm our commitment to the elimination of inefficient fossil fuel subsidies by 2025,” the communiqué read. “It is necessary to consider effective measures in order to stop the increase in the energy prices driven by extraordinary market conditions, without compromising key climate policy mechanisms to drive the energy transition.”

Later, the ministers doubled down on their promise to decarbonize electricity by 2035, insisting they will gradually phase out power generated from coal. “We highlight that, wherever feasible, electrification of energy demand sectors is key to decarbonizing our energy systems,” they wrote.

“This is a big step forward,” said Guilbeault. “Canada is showing our leadership by phasing out coal by 2030, though I suspect we may hit that target sooner.”

The G7's willingness to set aside their climate goals in the short term doesn't mean they will be successful in turning up new supplies of oil quickly. So far, OPEC is holding firm. During the pandemic, OPEC, which has an alliance with Russia known as OPEC+, decided to slash oil production and increase supplies gradually.

Now, the organization appears to be sticking with its decision, even as countries scramble to find alternatives to Russian oil.

Countries such as Australia, the United Kingdom, Canada and the United States have banned Russian oil, but the European Union, which gets the majority of its oil from Russia, has been slow to cut off supplies.

Germany is the top buyer of Russian oil in the bloc, importing 34 per cent of its oil from the country. It plans to cease Russian oil imports by the end of the year. China and India, on the other hand, have continued to buy Russian oil.

Canada has stepped up to help fill Europe's fuel gap, a move that could jeopardize its own climate goals.

“Canada, including the U.S. and some other countries, want to assist Europe in this crisis, and in a way that is aligned with our commitments,” Natural Resources Minister Jonathan Wilkinson said on the call with Guilbeault.

The feds have had talks with officials from Germany and the EU for support in developing Canada-based liquefied natural gas projects. Wilkinson said that, though the fuel would not be clean, it would nonetheless contribute to the broader energy “transition.”