Administration backs new gas spending in G-7 talks – with caveats

Administration

Energy and environment ministers of the Group of Seven major industrial nations pledged yesterday to speed up the shift to renewable energy.

But they left the door open to new investments in natural gas – and the Biden administration backed that final language in the closely-watched G-7 communique.

Until now the Biden administration, facing competing pressures from the fossil fuel industry and environmentalists, hadn’t publicly revealed its stance on whether the communique should endorse gas investments. But a senior administration official told The Climate 202 on Sunday that the U.S. negotiating team recognized gas can help address energy shortfalls spurred by Russia’s war in Ukraine in the short term, even as the world phases out fossil fuels to combat climate change in the long term.

“We’re still in the middle of a war,” said the official, who spoke on the condition of anonymity because they were not authorized to comment publicly. “We’re going to be looking at a situation next year where potentially you could have a terrible gas crunch again in Europe.”

At the same time, the official emphasized that investments in gas must be paired with advances in renewable energy and energy efficiency that help reduce gas demand in the first place.

G-7 communiques are nonbinding, but they send important market signals that reverberate around the globe. Before the two days of talks in Sapporo, Japan, the U.S. Chamber of Commerce and fossil fuel industry groups had urged the Biden administration to “affirm the crucial contributions of natural gas to global energy security,” while more than 100 environmental groups had called on the administration to “strenuously resist” such language.

The caveats

Japan, the host of the G-7 meeting, pushed for the communique to unequivocally endorse gas investments. But the final language included three big caveats backed by the United States and other members:

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