G7-Debates on the need to invest in fossil fuels-sources – 06/26/2022 at 22:42

SCHLOSS ELMAU, Germany, June 26 (Reuters) – Some G7 leaders are pushing for recognition of the need for new funding to invest in fossil fuels, two sources told Reuters on Sunday, as European countries scramble to diversify their supplies in the context of the war in Ukraine.

Delegations featured at the annual G7 summit are debating whether such recognition can be brought into line with some countries’ commitment at COP26 to suspend funding for international fossil fuel projects by the end of 2022.

“(It is) possible that there is a formula in the declaration that fossil fuel investments could be possible for a while,” an EU diplomat said on the first day of the annual G7 summit in London. Schloss Elmau in the Bavarian Alps.

Italian Prime Minister Mario Draghi, whose country is also dependent on Russian supplies, said publicly on Sunday that there were near-term needs for investment in gas infrastructure “in developing countries and elsewhere”.

At a press conference on a G7 investment plan in developing countries, he said it should be possible to convert such infrastructure to use hydrogen in the future.

European countries concerned about a shortage of energy imported from Russia as the Ukrainian conflict intensifies and concern grows about the effects on industry in countries particularly dependent on Moscow.

The European Union depended on Russia for 40% of its gas needs before the war, a level which reached 55% for Germany.

One of the sources said that German Chancellor Olaf Scholz – the chairman of the G7 – had put the issue of new infrastructure on the leaders’ agenda and that discussions were underway on whether to include it in the final declaration of the summit.

A German government spokesman declined to comment.

“It’s about how do we achieve climate transition despite using gas as a transitional form of energy and how do we make sure that’s not used as an excuse to relax climate targets?” an official said on Saturday. of the German government.

(Report Angelo Amante and Andreas Rinke, French version Benjamin Mallet)

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