In Italy on Tuesday (30 April), G7 ministers agreed a coal phase out in the first half of the 2030s, set their first-ever energy storage target, began difficult negotiations on climate finance past 2025 and started a water coalition.

The G7 countries account for 30% of global GDP and 21% of CO2 emissions, and count three nuclear powers amongst their numbers. After drawn-out negotiations, the alliance has embraced a coal phase out.

“This means that the G7 are all on the path to climate neutrality by 2050,” said Germany’s economy and climate action minister, Robert Habeck.

This year around, the annual jamboree of G7 energy, climate and environment ministers took place in Turin, a picturesque baroque city in the west of Italy’s industrial heartland.

Previous efforts to commit the entire group to phasing out coal had met stern resistance in the US and Japan. Today, they agreed to phase out coal “during the first half of the 2030s,” as per their joint statement after the meeting.

Two caveats remain: the agreement speaks of ‘unabated’ coal power – which would exclude plants equipped with carbon sequestration set-ups – and the date can be avoided provided the move is “in line with countries’ net-zero pathways.”

“This means nothing for Europe and Germany, as emissions trading has been set up in such a way that we will achieve the goal of climate neutrality by 2050,” Habeck stressed, while admitting that the agreement had required the US and Japan to give in.

Indeed, by 2039, power sector emissions will be near-prohibited by the EU’s CO2 trading scheme (ETS).

Luca Bergamaschi, CEO of Italian climate think-tank ECCO welcomed the development as a sign that the G7 was taking COP28 seriously, especially given the “development of domestic policies to transition away from fossil fuels over the next 12 months.”

Climate finance

With COP29, colloquially termed the “finance COP,” set to take place in November in Azerbaijan, the G7 ministers kickstarted the complicated process of agreeing on a new annual climate finance target beyond 2025, once the current $100 billion target expires.

With the US in an election year and Germany facing budget constraints, the group was only able to agree a “floor of $100 billion per year.”

Discussions are further complicated by increased interest rates and the aftershocks of the 2022 energy crisis in Europe. The joint statement acknowledges that “the global financial landscape has evolved considerably.”

Beijing was the elephant in the room, without ever being named. G7 ministers underlined “the importance of including in any international public finance mobilisation element those countries that are capable of contributing.”

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Energy storage

The second big headline of the ministerial jamboree is a commitment to boost energy storage six-fold from 230 GW in 2022 to “1500 GW in 2030.”

Buoyed by a 90% drop in battery prices over the past 15 years, the G7 wants to use the technology to back up its target of 150 GW offshore wind and one terawatt of solar panels by 2030.

According to data by clean energy think-tank Ember, the G7’s renewables ambition means the group is only on track to double, not triple, its capacity by 2030.

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Water coalition

Another first for the G7 was the founding of a ‘water coalition’, established by the group in Turin to “manage” access to water and sanitation, water quality, and “transboundary” water cooperation.

“Last year’s UN Water Conference created an unprecedented political dynamic in the water sector” commented Germany’s Steffi Lemke, environment minister.

The coalition was looking to “exchange best practices” from their national water management efforts leading into the 2026 UN water conference, she added.

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