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G-7 Launches Climate Club to Try and Avoid Green Trade Wars

Members will agree on joint rules and standards in the fight against global warming.

Group of Seven leaders in Bavaria.

Group of Seven leaders in Bavaria.

Photographer: Liesa Johannssen-Koppitz/Bloomberg

Leaders of the world’s most advanced economies have agreed to start a Climate Club where members agree on joint rules and standards in the fight against global warming with the hope that it will avoid spats over green tariffs. 

The Group of Seven nations reached a deal on the issue at a three-day summit in Bavaria, Germany, that ended on Tuesday. It’s a significant achievement for German Chancellor Olaf Scholz, who has made better coordination on climate protection measures a key theme of his G-7 presidency.

“We note with concern that currently neither global climate ambition nor implementation are sufficient to achieve the goals of the Paris Agreement,” the final G-7 leaders said in a statement. The Climate Club will address that by “accelerating climate action and increasing ambition, with a particular focus on the industry sector.”