FOR IMMEDIATE RELEASE
May 27, 2017
CONTACT: Alex Doukas, alex [AT] priceofoil.org
Reaction: G7 leaders cave in the face of fossil fuel cronyism, fail to recommit to ending fossil fuel subsidies by 2025
In response to the G7 Leaders’ Communiqué released today, where world leaders failed to reaffirm their commitment to phase out fossil fuel subsidies by 2025, and leaders except Trump signaled their commitment to the Paris Agreement on climate change, Alex Doukas, Senior Campaigner at Oil Change International, released the following statement:
“G7 leaders caved in the face fossil fuel cronyism, and were silent on their prior commitment to end fossil fuel subsidies by 2025 – despite this language being agreed at the meeting of G7 energy ministers in April.
“Subsidizing fossil fuel companies in the face of rapid climate change is like spraying jet fuel on a burning home. To put out the fire, we must first stop making the problem worse. Ignoring the problem just because fossil fuel industry mascots like Trump demand it is like agreeing to take the warning labels off of cigarettes because they offend Joe Camel. Our leaders must act now to stop burning our tax dollars and stop trashing the climate.
“Canada, next year’s G7 host, just slashed some key subsidies to the oil and gas industry. They can show strong climate leadership and respect for taxpayer money by putting this issue at the top of next year’s G7 agenda, and by ending all fossil fuel handouts, pushing the rest of the G7 to follow suit.
“The world will be watching, and also expecting the G7 to push the big public banks, such as the World Bank, to stop financing fossil fuels. Our analysis shows that G7-dominated big public banks financed over $7 billion in fossil fuel infrastructure with our tax dollars in 2015.
“On the Paris Agreement on climate change, even though Donald Trump threw a tantrum, the grown-ups in the room ignored him. The G6 – the G7 minus Trump – fully recommitted to the Paris Agreement. Trump can try to block climate action all he wants, but he has no hope of stopping the global momentum to fight dangerous climate change and secure a clean and safe energy future.”
- The just-released G7 Leaders’ Communiqué does not contain language on ending fossil fuel subsidies, contrary to the Chair’s Summary of the G7 Energy Ministers’ meeting in Rome in April, which noted, “The Heads of Delegation reiterated the commitment of phasing out inefficient fossil fuel subsidies that encourage wasteful consumption, and encouraged all countries to do so, by 2025.” The G7 leaders, minus Trump, did however reaffirm their strong commitment to the Paris Agreement on climate change.
- The 2016 G7 Leaders’ Statement included language on phasing out fossil fuel subsidies by 2025 for the first time: “We remain committed to the elimination of inefficient fossil fuel subsidies and encourage all countries to do so by 2025.”
- In its 2017 budget, released in March, the Government of Canada took a first step at reducing key subsidies to oil and gas companies.
- On May 25, 2017, ahead of the G7 Leaders’ Summit, Oil Change International published an analysis showing that the G7-dominated big multilateral development banks financed over $7 billion in fossil fuels in 2015 alone.