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

Tags: International News

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.