Greening the G7 economies

Abstract

Despite some progress, the Group of 7 (G7) have yet to act collectively to foster a low-carbon transition of their economies. This paper outlines such a strategy, which would also encourage other economies to follow suit. This strategy has three elements: fossil fuel pricing reforms; recycling revenues to fund green innovation and to offset any adverse income or employment impacts; and developing the proposed G7 Climate Club to promote compliance by other countries. This must be accompanied by comprehensive assistance to emerging market and developing economies to help accelerate their clean energy transition, facilitate their participation in the Climate Club, and attain climate, poverty and development goals.