G7 Agreement to Halt New Coal Investments

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major Seven countries (G7) have agreed to halt investments in coal development plans that emit greenhouse gases by the end of this year, according to major foreign media reports on the 22nd (local time).

This is a measure to prevent climate change. Foreign media explained that stopping coal investments is an important step to achieve the goal of keeping the global temperature rise below 1.5 degrees Celsius compared to pre-industrial times by 2050.

In a joint statement, the G7 emphasized the need to immediately stop international investments in coal. They also agreed to take measures to firmly end new government direct investments related to coal power by the end of 2021.

Japan also joined this agreement to halt coal investments. Japan had been lukewarm about stopping coal investments as coal accounts for one-third of its power generation fuel.

With the G7 agreeing to stop coal investments, pressure on China is expected to increase. China has declared its goal of carbon neutrality by 2060 and aims to reduce its dependence on coal. However, according to Ember, an energy and climate think tank based in London, UK, China's coal power generation increased by 1.7% last year. China depends on coal for 58% of its total energy. According to Ember, China accounted for 53% of global coal power generation last year.

Alok Sharma, Chair of the 26th United Nations Climate Change Conference of the Parties (COP26), urged China to establish not only long-term carbon neutrality goals but also short-term policy targets.

Chair Sharma said that COP26 will be an opportunity to make coal a thing of the past. COP26 is scheduled to be held this November in Glasgow, Scotland.

This content was produced with the assistance of AI translation services.