G7 Statement on Climate ClubElmau, 28 June 2022
Recognising the necessity of the transition to a 1.5°C pathway and climate neutrality at thelatest by 2050, we note with concern that currently neither global climate ambition nor
implementation are sufficient to achieve the goals of the Paris Agreement by reducing
greenhouse gas emissions. We aim to establish a Climate Club to support the effective
implementation of the Paris Agreement by accelerating climate action and increasing
ambition, with a particular focus on the industry sector, thereby addressing risks of carbon
leakage for emission intensive goods, while complying with international rules.
The Climate Club is to be built on three pillars:
1) Advancing ambitious and transparent climate mitigation policies to reduce emissions
intensities of participating economies on the pathway towards climate neutrality, bymaking policies and outcomes consistent with our ambition, strengthening emissions
measurement and reporting mechanisms, and countering carbon leakage at theinternational level. In this regard, members would share best practices and work towards acommon understanding of assessing ways to compare the effectiveness as well as theeconomic impacts of our mitigation policies consistently with our ambition to reduce
emissions such as through explicit carbon pricing, other carbon mitigation approaches andcarbon intensities.
2) Transforming industries jointly to accelerate decarbonisation, including through taking
into account the Industrial Decarbonisation Agenda, the Hydrogen Action Pact, andexpanding markets for green industrial products.
3) Boosting international ambition through partnerships and cooperation to encourage andfacilitate climate action and unlock socio-economic benefits of climate cooperation and topromote just energy transition. As a complement, Just Energy Transition Partnerships(JETPs) have the potential to leverage support and assistance to developing countries fordecarbonising energy and industrial sectors, transparency, including through financial,technical capacity support and technology transfer development and deployment
depending on their level of climate ambition.
The Climate Club, as an intergovernmental forum of high ambition, will be inclusive innature and open to countries that are committed to the full implementation of the Paris

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Agreement and the decisions thereunder, in particular the Glasgow Climate Pact, and toaccelerate their action to this end. We invite partners, including major emitters, G20
members and other developing and emerging economies, to intensify discussions andconsultations with us on this matter.
We welcome the progress made during the German G7 Presidency across several G7
Ministerial tracks. We will work together, and with partners beyond the G7, to promoteambitious climate policy around the world. We endorse the goals of and will work withpartners towards establishing an open, cooperative international Climate Club, consistent
with international rules, by the end of 2022.
We will each designate relevant Ministers to develop comprehensive terms of reference
while reaching out to interested and ambitious partners, and to report back to Leaders forapproval of next steps to establishment by the end of 2022. We ask the OECD, the IMF, theWorld Bank, the IEA, and the WTO to support this process in line with their relevant
expertise. In this regard, we welcome the OECD’s Inclusive Forum on Carbon Mitigation
Approaches (IFCMA) and look forward to its contribution to the Climate Club.

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