Energy ministers from the Group of Seven (G7) wealthy countries reached a deal to shut down their coal-fired power plants by 2035 at the latest, in a significant step towards the transition away from fossil fuels.
"We have an agreement to stop using coal in the first half of 2030's... it is an historical agreement," Britain's minister for Energy Security and Net Zero Andrew Bowie told Class CNBC according to a video posted on X.
Italian diplomatic sources said a technical deal had been reached.
The accord will be included in the G7 energy ministers' final communique to be released on April 30 at the end of a two-day meeting in Turin.
One source told Reuters earlier that diplomats from the G7 nations - Italy, the U.S., Britain, France, Germany, Canada and Japan - discussed the issue until late on April 28, before the start of the ministerial gathering.
The agreement marks a significant step in the direction indicated last year by the COP28 United Nations climate summit for a transition away from fossil fuels, of which coal is the most polluting.
"It helps accelerate the shift of investments from coal to clean technology in particular in Japan and more broadly in the whole Asian coal economy, including China and India," Luca Bergamaschi, co-founding member of Italian climate change think-tank ECCO, said on X.
Italy last year produced 4.7% of its total electricity through its six remaining coal-fired stations. Rome currently plans to turn off its plants by 2025, except on the island of Sardinia where the deadline is 2028.
In Germany and Japan coal has a bigger role, with the share of electricity produced by the fuel higher than 25% of total last year.
Last year under Japan's presidency, the G7 had pledged to prioritize concrete steps towards phasing out coal power generation, falling short of indicating a specific deadline.
Recommended Reading
Exxon Ups Mammoth Offshore Guyana Production by Another 100,000 bbl/d
2024-04-15 - Exxon Mobil, which took a final investment decision on its Whiptail development on April 12, now estimates its six offshore Guyana projects will average gross production of 1.3 MMbbl/d by 2027.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.