Germany aims to turn G7 into “nucleus of an international climate club” – chancellor

Germany will use its presidency of the Group of Seven (G7) major economies this year to turn the group into “a nucleus of an international climate club,” said German chancellor Olaf Scholz at the World Economic Forum (“Davos Agenda”). “What we want to achieve is a paradigm shift in international climate policy,” said Scholz. “We will no longer wait for the slowest and least ambitious. Instead, we will lead by example, and we will turn climate action from a cost factor into a competitive advantage, by agreeing on joint minimum standards.” A climate club would work under the motto “ambitious, bold and cooperative” and remain open to all countries. “We are not looking to be an exclusive club. By addressing technology transfer and climate financing, we hope to bring developing and emerging economies on board.” Scholz added that green hydrogen would be a prime example. The climate club would work on a common understanding of what green hydrogen actually is and coordinate investments. This would be beneficial for a country like Germany with a strong industrial base and high energy demand, and also for “those that would become the main producers of green hydrogen, namely emerging economies and developing countries,” said Scholz.

In leading the G7, Germany aims to strengthen international climate policy efforts by pushing for the establishment of a global “climate club” and new bilateral climate partnerships. Chancellor Olaf Scholz said Germany would use its year-long presidency, which began on 1 January, “to make this group of countries a trailblazer for a climate-neutral economy and for a just world.”