G-7 Agrees $15.5B Energy Deal with Vietnam to Cut Emissions
G-7 Agrees $15.5B Energy Deal with Vietnam to Cut Emissions: A pact to give Vietnam $15.5 billion to help the Southeast Asian country move faster from coal power to renewable energy and reduce its climate-damaging pollution was approved by a group of nine rich industrialised nations.
December 2022 Current Affairs Quiz
More About This Development:
The Group of Seven major economies, along with Norway and Denmark, said in a statement that the aim is to help Vietnam reduce its emissions to “net zero” by 2050, a goal which expert say needs to be met globally to cap global warming at 1.5 degrees Celsius.
About This Initiative:
Developing and developed countries are negotiating a series of agreements, including the Just Energy Transition Partnership with Vietnam. The first such deal was signed with South Africa last year, and a similar agreement was reached with Indonesia last month.
Significance Of This Move:
Vietnam is a dynamic, emerging economy at the heart of Southeast Asia,” British Prime Minister Rishi Sunak said. “The investment we are making today means the country can cut its emissions while simultaneously creating new jobs and growth.
About The Transition:
The $15.5 billion of funding will come from public and private sources over the coming three to five years, much of it in the form of loans, according to the agreement.
By using the money to expand its electricity grid and increase renewable energy production, Vietnam will be able to bring forward its target for peaking emissions from 2035 to 2030. Additionally, the country will increase its forecast 36% share of renewable energy in power by 2030 to 47%.
About G7:
The G7 or the Group of Seven is a group of the seven most advanced economies. The seven nations are France, Germany, Japan, the United States, Canada, and the United Kingdom.
It started out in 1975. Annual G7 summits are held to discuss issues like international security, energy policy, and global economic control. All the G7 countries and India are also the part of G20. The G7 does not have a fixed headquarters. The UK currently chairs the G7 and has invited India along with Australia, the Republic of Korea and South Africa as guest countries for the G7 summit.