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G7 leaders agree framework to drive new partnership for sustainable infrastructure 

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UK Prime Minister Boris Johnson poses for a family photograph with US President Joe Biden, Canada's Prime Minister Justin Trudeau, France's President Emmanuel Macron, German Chancellor Angela Merkel, Italy's Prime Minister Mario Draghi, Japan's Prime Minister Yoshihide Suga European Commission President Ursula von der Leyen and European Council President Charles Michel during the G7 Leaders summit in Carbis Bay. Picture by Simon Dawson / No 10 Downing Street
UK Prime Minister Boris Johnson poses for a family photograph with US President Joe Biden, Canada’s Prime Minister Justin Trudeau, France’s President Emmanuel Macron, German Chancellor Angela Merkel, Italy’s Prime Minister Mario Draghi, Japan’s Prime Minister Yoshihide Suga European Commission President Ursula von der Leyen and European Council President Charles Michel during the G7 Leaders summit in Carbis Bay. Picture by Simon Dawson / No 10 Downing Street

G7 Leaders announced today the framework for a new green partnership to address the global infrastructure gap with a new G7 political commitment to shift the trillions. Critical to increased 2030 climate pledges (NDCs) by COP27, as required by the Glasgow Climate Pact, is a credible offer of affordable financing from developed countries and the development finance institutions.

LONDON, 3 DECEMBER 

Story  

G7 Leaders announced today the framework for a new green partnership to address the global infrastructure gap with a new G7 political commitment to shift the trillions. Critical to increased 2030 climate pledges (NDCs) by COP27, as required by the Glasgow Climate Pact, is a credible offer of affordable financing from developed countries and the development finance institutions.  

Today the G7 laid the foundation for this by endorsing five principles for infrastructure development. This is a single strategic framework, building upon the US’s Build Back Better World (B3W), the UK’s Clean Green Initiative and the EU’s Global Gateway. 

Summarising the five principles, the G7 will: 

  1. Sustain a step change in ambition, partnering with developing countries on their infrastructure investment.  
  2. Strengthen partnerships between developing countries, developed country support, and the private sector.  
  3. Drive a race to the top on standards. 
  4. Support the ambition to scale up from billions to trillions in finance by mobilising both public and private sector finance. 
  5. Reinforce the G7’s partnership approach through regional and country-platforms. 

The principles are important as they lay the political foundation for the global multilateral development finance system to step up its efforts to bring climate finance to scale. They emphasise: a strong climate focus and new platforms for mobilization and, the need for “shifting the trillions” by leveraging private capital. This is a call on the World Bank – and other development finance institutions – to rethink their business models and risk-management approaches. This will drive and support sustainable infrastructure investment by addressing both short and long-term needs, setting market signals, and mobilize institutional investors. 

Delivering these reforms will require political energy from Olaf Scholz, Germany’s Chancellor-Elect, and Annalena Baerbock, who agreed to make a “massive expansion of renewable energies and related infrastructure” a central element of Germany’s G7 Presidency next year as per the terms of the coalition pact for Germany’s post Merkel era. 

Quote – G7 leaders framework

Julian Havers – E3G’s Public Banks expert said: 

Implementing the Glasgow “ratchet-mechanism” which requires countries to align their emission reductions with a 1.5C pathway will require extraordinary leadership. By agreeing on five principles for mobilising trillions of finance into sustainable infrastructure in developing countries, G7 leaders have begun to build the foundations to deliver the global transition to net zero.

Available for comment 

E3G experts are available for commentary – please contact them directly:  

Julian Havers, Public Banks and Just Transition Lead
m: +49 (0)15783910149, julian.havers@e3g.org

ENDS 

Notes to Editors 

  • E3G is an independent climate change think tank accelerating the transition to a climate safe world. E3G specialises in climate diplomacy, climate risk, energy policy and climate finance. -> About 
  • For further enquiries email press@e3g.org or phone +44 (0)7783 787 863 

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