The G7 has an opportunity to lead the global energy markets towards net zero emissions by 2050. In June 2021, the G7 Leaders committed to “net zero no later than 2050” and to “lead a technology-driven transition to net zero, supported by relevant policies”. These commitments demonstrate political leadership and come at a critical time, ahead of the 26th Conference of the Parties of the United Nations Framework Convention on Climate Change. G7 members – Canada, France, Germany, Italy, Japan, the United Kingdom, the United States plus the European Union – in 2020 accounted for nearly 40% of the global economy, 30% of global energy demand and 25% of global energy-related CO2 emissions.
Implementing the policies, proving the technologies and taking the steps necessary to achieve net zero emissions in a secure and affordable way in the G7 are critical to accelerating people-centred transitions around the world.
Decarbonising electricity is central to reaching net zero emissions, as it addresses the highest emitting sector today and enables the decarbonisation of other sectors. This roadmap for G7 electricity sectors
identifies key milestones, emerging challenges, opportunities for innovation and principles of action to achieve net zero by 2035. It builds on the IEA report Net Zero by 2050: A Roadmap for the Global Energy Sector and is aligned with the June 2021 G7 commitment to “an overwhelmingly decarbonised power system in the 2030s”. The G7 roadmap follows the IEA Net Zero Emissions by 2050 Scenario (NZE) global pathway that is consistent with limiting the global average temperature rise to 1.5 °C, although it is not the only pathway to this objective. It was developed within the comprehensive energy modelling frameworks of the World Energy Outlook and Energy Technology Perspectives report, incorporating the latest energy data and the state of technology, and expands on policy settings
around the world.
Clean energy transitions in the G7 are underway
The electricity sector accounts for one-third of G7 energy-related emissions today, well below the peak share of nearly 40% in 2007, as electricity sector emissions are on a decline with coal giving way to cleaner sources. The main drivers of these reductions in recent years were cheap natural gas in several
markets and strong growth for renewables.
In 2020, natural gas and renewables Achieving Net Zero were the primary sources of electricity in the G7, each providing about 30% of the total, followed by nuclear power and coal at close to 20% each.
Momentum is building as governments in the G7 are re-shaping the electricity policy landscape with net zero in their sights. All G7 members have made a commitment to reach net zero emissions, underpinned in each case by a range of policy measures and targets that aim to phase out or reduce unabated
coal-fired power while increasing the use of renewables, hydrogen, ammonia and carbon capture technologies, among other things. Over USD 500 billion in government funds have been collectively committed by G7 members to clean energy to boost sustainable recoveries from the Covid-19 pandemic, almost 20% of which is for the electricity sector. G7 members have also pioneered carbon pricing mechanisms and continue to apply these to support the decarbonisation of electricity.