G7 Hiroshima Summit: Financial stability, energy transition and AI in joint statement

The Group of Seven (G7) countries met in Hiroshima, Japan for the annual summit on May 19-21, 2023. The two-day meet saw a number of notable declarations in the joint statement issued by the leaders of US, Canada, UK, Japan, Italy, Germany, and France.

The G7 is an informal grouping of seven of the world’s advanced economies. The host country Japan is the president of the grouping for 2023.

While political discussions at the summit made headlines around the world, the summit saw the leaders speak on a range of issues such as the recent banking turmoil, cryptocurrency markets, generative artificial intelligence (AI), and climate change.

Democracies deliver. pic.twitter.com/B1FM1EGgQM

— President Biden (@POTUS) May 20, 2023

G7 summit highlights

1. 1. Economic resilience and economic security: The recent banking turmoil in the US and Europe was high on the agenda at the G7 summit. The leaders committed to maintaining financial stability and the resilience of the global financial system. The leaders also committed to addressing integrity risks posed by crypto-asset activities and markets and to avoid regulatory arbitrage, while supporting responsible innovation.
   2. Transition to clean energy economies: The grouping committed itself to drive the transition to clean energy economies. The leaders said they were committed to achieving a “fully or predominantly” decarbonised power sector by 2035, and “accelerating” the phaseout of unabated coal power. They also said that they “publicly supported investment in the gas sector as it can be appropriate as a temporary response” to the crisis. Fuels such as hydrogen and ammonia were identified for use in sectors that were difficult to decarbonise due to their high energy needs, such as heavy industry and transport. The G7 promised to deepen cooperation through Just Energy Transition Partnerships (JETPs), the Climate Club and new Country Packages for Forest, Nature and Climate.
   3. Sustainable Development Goals (SDGs): The joint statement underscored the relationship between “reducing poverty and tackling the climate and nature crisis”. The statement added the G7 countries will accelerate the implementation of the 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda (AAAA). The summit meeting also recognised that 2023 is the halfway point to achieve the SDGs, and to “ambitiously contribute to a successful outcome.”
   4. Partnership for Global Infrastructure Investment (PGII): The seven countries acknowledged the importance of narrowing the infrastructure investment gap in low and middle-income partner countries, including by delivering financing for quality infrastructure, supporting efforts to advance policy reforms needed to attract investment, operationalising country-led partnerships, and promoting upstream support including project preparation support. The group reaffirmed its commitments to mobilising upto $600bn by 2027.

   I joined fellow G7 Leaders to highlight the work we’ve done through the Partnership for Global Infrastructure and Investment to mobilise financing for quality infrastructure around the world.

   And together, let’s recommit to showing that democracies can deliver. pic.twitter.com/4dAnPApMHn

   — President Biden (@POTUS) May 21, 2023

   5. Inclusive artificial intelligence governance to achieve trustworthy AI: The G7 nations called for the development and adoption of technical standards to keep artificial intelligence “trustworthy”, saying governance of the technology has not kept pace with its growth. Japan recognised that the approaches to achieving “the common vision and goal of trustworthy AI may vary”. Japanese Prime Minister Fumio Kishida said in a statement the rules for digital technologies like AI should be “in line with our shared democratic values”.

   G7広島サミットが閉幕しました。3日間に渡りご協力を頂きました広島の皆さんと関係各位に心から感謝を申し上げます。
   日本のG7議長年は続きます。法の支配に基づく自由で開かれた国際秩序を守り抜く、国際的なパートナーとの関与を強化する、G7の議論を主導し議長の務めをしっかりと果たして参ります。 pic.twitter.com/ExqzntzL0k

   — 岸田文雄 (@kishida230) May 21, 2023

   The joint statement touched upon the Pandemic Fund, continuing the development of Multilateral Development Banks, and strengthening partnership with African nations. The summit also saw leaders of Australia, Brazil, Comoros, Cook Islands, India, Indonesia, Republic of Korea and Vietnam attend the summit.

   Read: OPEC Fund, ACWA Power sign $40m loan deals to build wind farms in Uzbekistan

   Image Credit: MOFA, Japan