The G7 has been criticized for its Covid bailouts that “green chains” are not attached

The world’s major economies have channeled more than $ 189 billion in pandemic recovery funds to fossil fuels, despite the government’s commitment to “building greener” and reducing carbon emissions.

From January 2020 to March this year, more than $ 372 billion allocated by the G7 countries to energy production and consumption activities was for coal, oil and gas, Tearfund research, development charity, sponsored by two independent think tanks.

Most of the money has been delivered “wirelessly” to companies that receive support to reduce their carbon footprint without making any requests.

“Post-Covid economic recovery is a unique opportunity to accelerate the transition to a green economy,” said Rich Gower, a senior association at Tearfund. “At the moment, the G7 is not taking advantage of that opportunity.”

Including pandemic survivals highlighted in the report The German government has rescued 9 billion euros from Lufthansa and $ 10 billion in US government assistance to airports.

About $ 147 billion was earmarked for clean energy projects, such as tax incentives in Italy to encourage people to make their homes more energy efficient.

G7 countries account for about a quarter of carbon emissions, even though they make up only about 10% of the world’s population.

Governments have made green commitments this year ahead of a conference on climate change known as the UN’s COP26 in Glasgow in November. More ambitious plans to reduce emissions have come with promises to raise money for the development of green jobs and new industries.

In May, G7 countries have vowed to stop all new funding for foreign coal projects at the end of this year, and to make “rapid efforts” to limit global warming to 1.5 C compared to previous industrial times.

However, Tearfund’s research has shown that a large portion of recovery spending so far has not been in line with plans to take cleaner energy sources.

In a separate report released on Wednesday, the International Energy Agency said there was growth in 2020 for coal-fired power plants, driven by projects in China and several other Asian countries.

Investments in the previous oil and gas industry are expected to rise by around 8% this year, but the IEA added that they will remain below pre-crisis levels.

“In addition to making commitments to reduce emissions, governments need to take specific steps to accelerate investment in clean energy solutions that are ready for the market and promote innovation in early-stage technologies,” said IEA Executive Director Fatih Birol.

According to the Tearfund report, the governments of Australia, India, Korea and South Africa – guests of the G7 summit – have expanded their coal production economically or politically since January 2020.

The researchers recommended that the G7 adopt the principle of “do no harm” to all spending, including adding “green chains” to all aid for fossil fuel-intensive sectors and ending public money for coal, oil and petroleum production. gas.

The report says the G7 should use its influence to push development banks to limit their alignment of warming to 1.5C.

“Every penny matters,” Gower said. Spending on dirty energy today is a “survival of fossil fuels for the future”.

Climate Capital

Where climate change unites businesses, markets and politics. Browse FT coverage here.

Are you curious about FT’s environmental sustainability commitments? Learn more here about science-based goals