G7 nations have declared their intention to mobilize a substantial investment of US$600 billion over the next four years to drive an action plan focused on decarbonizing economies and promoting nearshoring initiatives. Mexico's absence from the meeting raises concern, as highlighted by Leonardo Beltrán Rodríguez, Non-Resident Fellow, Institute of the Americas.
While the G7 powers convened to discuss this pivotal agenda. Beltrán expressed regret over Mexico's absence, emphasizing the missed opportunity to contribute to and benefit from the discussions. Meanwhile, G20 powers were in attendance, and US President Joe Biden provided insights into the progress made by the US in this area. President Biden stated that the US had already mobilized more than US$30 billion in Powering Past Coal Alliance (PGII) projects globally, underscoring their commitment to the collective goal of mobilizing US$600 billion in investments by 2027.
According to Beltrán, the announced investments will be channeled toward five primary focus areas. Firstly, there will be an emphasis on developing a new business model centered around decarbonized industrial production. This shift aims to drive sustainable practices and reduce carbon emissions within the industrial sector, as reported by Energía a Debate.
International cooperation is another aspect of the G7's action plan. The goal is to move beyond nationalist narratives and foster a globalized approach that encourages collaboration among nations to tackle climate challenges collectively.
Determining the carbon content of products is also on the agenda. Countries that demonstrate lower carbon content in manufacturing and production processes of their goods will be given preferential treatment. Beltrán emphasized the significance of investing in clean generation as a means to align with this objective.
Nearshoring, a strategic approach to shifting production closer to consumer markets, was highlighted as a key opportunity for Mexico. Beltrán emphasized the country's advantage as a member of the G20, but expressed disappointment that Mexico was not present at the table during the G7 meeting to actively participate in shaping nearshoring strategies.
Lastly, G7 countries emphasized the need for clear and transparent rules to govern the energy sector. They pledged to promote competitive, open and transparent energy markets, while also striving for international standardization, especially concerning critical minerals that play a vital role in the global energy transition.