The Chancellor of Germany, Olaf Scholz, has announced that Indonesia will be joining an international climate club formed by G7 countries. The club, established last year, focuses on tackling global warming worldwide.
As quoted by Bloomberg on Monday (17/4/2023), Indonesia’s inclusion as the largest economy in Southeast Asia will increase the club’s weight in coordinating global rules on climate issues and avoiding trade disputes over green tariffs.
According to Scholz, Indonesia will receive billions of euros in the coming years from advanced countries and private investors to accelerate the transition from fossil fuels.
He also conveyed that Germany is committed to supporting an ambitious climate agenda, which is related to plans for the development of renewable energy production and ending dependence on Russian natural gas.
As a result, the Chancellor is continuing to encourage other countries to accelerate decarbonization while also creating more opportunities for European companies to profit from the global economic transformation.
He also urged European leaders to accelerate trade talks with other countries, including Indonesia, India, and Mexico.
Meanwhile, at the G7 Energy and Environment Ministers’ meeting in Sapporo, Japan, last week, G7 countries agreed to accelerate the phasing out of fossil fuels as part of the energy transition.
French Energy Minister Agnès Pannier-Runacher said that the ministers are negotiating a joint communiqué outlining the support of the world’s most advanced economies for global energy transition.
“For the first time, we have decided to accelerate the gradual elimination of all fossil fuels. G7 also said that there should be no new coal-fired power plants,” she said as quoted by Bloomberg.
The bloc consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States (US) has positioned itself as a leader in the global mission to achieve decarbonization.
Furthermore, G7 also called for the acceleration of renewable energy installation, aiming to multiply solar capacity and increase offshore wind generation seven-fold from 2021 levels across countries by the end of this decade.
This move shows that many of the world’s leading economies are taking bold steps towards mitigating the effects of climate change. The inclusion of Indonesia in the G7’s climate club is significant, as it signals a willingness on the part of emerging economies to take on a more active role in the fight against climate change.
The pledge to accelerate the transition away from fossil fuels is particularly noteworthy, as it represents a clear departure from the traditional reliance on these energy sources.
This shift towards renewable energy will not only help to mitigate the effects of climate change but will also create new economic opportunities for countries and businesses that are willing to embrace this new paradigm.
It is crucial that other countries, particularly those in the developing world, follow the lead of the G7 and take proactive measures to address the issue of climate change. By working together, international climate club can create a more sustainable and prosperous future for all.
