G7 finance ministers and the global financial elite issued an important Communique on June 5, and while the mainstream media (and Finance Canada’s own press release ) focused mainly on a 15% minimum global tax rate for corporations, the Communique made ambitious statements regarding international climate finance too, with calls which seem to acknowledge the importance and inequity of climate risk to the global financial order. “G7 Ministers Recommit to Climate Finance, Leave Details for Later” in The Energy Mix summarizes the general reaction that the Communique is too vague and “unambitious”. The article states that the scale of global climate investment (both public and private) is estimated at $100 billion per year, and that Canada’s fair share would be US$4 billion per year.
The issue of global climate finance is seen as crucial to the success of the upcoming G7 meetings of world leaders in the U.K. on June 11-13. “As leaders gather for G-7, a key question: Will rich countries help poor ones grapple with climate change?” in The Washington Post (June 7) describes how global climate finance and the issue of global vaccine disparity are being conflated, for example in a quote from a senior advisor to Climate Action Network International: “The G-7 meeting will be a test for international solidarity. This implies solidarity on both ensuring equitable and rapid access to vaccines globally, as well as on finance and support for the climate crisis”. “World Climate Deal Could Fail unless G7 Solves Vaccine Disparities” (June 8, The Energy Mix) quotes the head of the international Chamber of Commerce: “We can’t have global solidarity and trust around tackling climate change if we do not show solidarity around vaccines.” The Guardian writes: “Share vaccines or the climate deal will fail rich countries are told” (June 5) – which points out that “Canada has the highest number of procured doses per head, with a total of 381 million procured vaccine doses for a population of just over 37 million.” – and contrasts Canada with the low vaccine availability in such countries as Columbia, Indonesia, South Africa, and Pakistan.
Climate Change is one of the priorities of the G7 meetings. Reports released in anticipation of the G7 meeting include:
Ranking G7 Green Recovery Plans and Jobs published by the U.K.’s Trades Union Congress, which shows that the U.S. had the highest level of green jobs and recovery investment per person, followed by Italy and then Canada. The U.K. ranks sixth, with Japan 7th. The report critiques specific U.K. policies and makes recommendations for improvements.
Oxfam International posted analysis on June 7 which estimates that the economies of G7 nations contracted by about 4.2 per cent on average in the pandemic, and compares that to the greater economic impacts which will result from extreme weather, the effects on agricultural productivity, and heat stress and health. The report includes estimates of GDP losses by 2050, assuming 2.6°C of warming, using the modelling of the Swiss Re Insurance Economics of Climate Change Index , and predicts the worst affected countries will be India, Australia, South Africa, South Korea, The Phillipines (with a 35% loss of GDP), and Columbia. Canada’s GDP loss is estimated at 6.9%. The report is summarized in “Covid shrunk the economy but climate change will be much worse” (The Guardian, reposted in The National Observer, June 8) and also in “Climate inaction will cost G7 countries ‘billions’” in Deutsche Welle .
The official G7 Ministers meeting website is here and will post official documents/news. The Resist G7 Coalition will present different information, and aims to coordinate protests on their Facebook page and their website. A Reuters article states that police will number 6,500, and Extinction Rebellion alone estimates 1,000 protestors will be present.