G-7 agrees $15.5B energy deal with Vietnam to cut emissions

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G-7 agrees $15.5B energy deal with Vietnam to cut emissions

The Group of Seven (G-7) rich industrialised nations has approved an agreement to provide $15.5 billion to Vietnam.

Important facts

  • This will help the Southeast Asian nation rapidly move from coal-fired power to renewable energy, thereby reducing its climate-damaging pollution.

  • The Group of Seven major economies, along with Norway and Denmark, said that the aim is to help Vietnam reduce its emissions to “net zero” by 2050, a goal which experts say needs to be met globally to cap global warming at 1.5 degrees Celsius (2.7 degrees Fahrenheit).

  • The Just Energy Transition Partnership with Vietnam is among a series of agreements that developing and rich nations are negotiating. 

  • The first such deal was signed with South Africa last year, and a similar agreement was reached with Indonesia last month.

  • The $15.5 billion of funding will come from public and private sources over the coming three to five years.

About G7

  • The G7 or the Group of Seven is a group of the seven most advanced economies.

  • The seven countries are Canada, the USA, UK, France, Germany, Japan and Italy.

  • It was formed in 1975.

  • G7 countries meet annually to discuss issues of common interest like global economic governance, international security and energy policy.

  • All the G7 countries and India are a part of G20.

  • The G7 does not have a fixed headquarters.

  • The UK currently chairs the G7 and has invited India along with Australia, the Republic of Korea and South Africa as guest countries for the G7 summit.

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