"G7 Clean Energy Economy Action Plan" 20 May 2023

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IV. Establishing Resilient Global Supply Chains

The Covid-19 pandemic and the energy crisis have laid bare vulnerabilities in our supply chains, with significant impacts within and beyond our borders. We share a goal to increase total investment in the clean energy manufacturing supply chain and accelerating the development and deployment of relevant technology. We look forward to the International Energy Agency’s (IEA) report of its progress on clean energy supply chain by COP 28. In addition, we recognize the importance of analyzing vulnerabilities of our supply chains including stress testing. We put emphasis on scaling up investments globally into the manufacturing and installation of clean energy technologies and diversifying clean energy supply chains in a way that ensures they are secure, resilient, affordable, and sustainable, seeking to reduce and avoid undue dependency arising from geographically concentrated clean energy supply chains. In this context, we will support local value creation in critical minerals supply chains, including processing and refining, based on our commitment to our multilateral trading system to make them robust, resilient, responsible, and transparent. Cooperation is also necessary so that these supply chains are aligned with internationally-accepted standards on responsible business conduct such as the UN Guiding Principles on Business and Human Rights, ILO Tripartite Declaration and the OECD Guidelines for Multinational Enterprises. We commit to establishing new partnerships with LMICs that will play critical roles in building secure, resilient, affordable, and sustainable clean energy supply chains for local and global energy transitions. We will utilize the G7 Partnership for Global Infrastructure and Investment (PGII) to catalyze public and private finance towards quality climate and energy security investments that will support LMICs to fully benefit from the diversification of supply chains, reduce high-risk dependencies, and to meet their own clean energy transition goals. As part of PGII, we will seek to work with partners to develop a pipeline of bankable projects, by identifying new incentives and methods to unlock additional private capital towards these priorities to support and accelerate our partners’ clean energy transitions and contribute to long-lasting economic growth in LMICs. In parallel, we task the Finance Ministers to turn their “High-level Policy Guidance for Public Finance Tools to Build Resilient Supply Chains in the Era of Decarbonization” into specific actions by developing the “Partnership for RISE (Resilient and Inclusive Supply-chain Enhancement)” in collaboration with interested partners and international organizations, especially the World Bank Group, with the aim at its launch by the end of this year at the latest. We will continue our collaboration through the Minerals Security Partnership to strengthen supply chains for critical minerals, promote responsible and sustainable investment in extraction and processing, and recycling and drive high Environmental Social and Governance (ESG) standards. We will promote supply chains in line with high ESG standards that ensure benefits to local communities and advance a just energy transition rooted in social dialogue, social and environmental protection, rights at work and employment. We also promote the private sector’s adoption of due diligence requirements in line with the OECD Guidelines for Multinational Enterprises and the OECD’s Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas to increase responsible business conduct. To support this effort, we welcome the new report by the IEA to the summit and will ask the IEA to produce a clean energy manufacturing roadmap leading up to a high-level international workshop in 2023.

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