Explained: What Is A ¡®Climate Club¡¯ And Why Germany Is Stressing For It?

German Chancellor Olaf Schollz has proposed the creation of the Climate Club at the 48th G7 summit in Schloss Elmau, Germany.

As Germany hosts the 48th G7 summit at the Bavarian Resort of Elmau, the leaders from the Group of Seven leading economies come together to discuss the food, energy, and geopolitical crisis stimulated due to the Russian invasion of Ukraine. The meeting was scheduled to discuss the climate change issue before the situation escalated on the Ukrainian border.

AFP

But a few days ahead of the summit German Chancellor Olaf Schollz called for the stress of the meeting to remain on a collective commitment to curb global warming and has extended it for the creation of a climate club to pace up the steps taken with regard to the climate change issue.

What is a Climate Club?

Reuters

First propounded by Yale economist and Nobel Laureate William Nordhaus, who believed that the voluntary nature of existing climate agreements has not contributed to the mitigation of the issue in any significant manner. Nordhaus proposed that the countries dedicated to reducing emissions could come together for the creation of a club to formulate joint and cooperative targets to reduce carbon footprint and bail each other out from climate-related trade tariffs that non-members shall be subjected to.

Who are the potential members?

While the German Chancellor is keen on getting all the G7 nations on this club. France and Russia being members of the European Union (EU) and adherents of its climate-related goals are almost given in the club. Canada too with its interests in the trade agreement between Canada and the EU might try to seek leverage in its advocacy for the agreement with a membership in the club.

Reuters

The United Kingdom¡¯s history with the EU might make things seem difficult but since the club also includes members beyond the Union elevates the chances of getting the UK in. The United States under a democratic government with president Joe Biden has higher chances of getting the country into an agreement on Climate Change given the Republican stance on the issue and previous presidents George Bush and Donald Trump¡¯s withdrawal from the 1997 Kyoto Treaty and 2015 Paris Accords.

The US rejoining of the accords under Joe Biden, the Great debate and China¡¯s position on the issue might require the US to join this alliance. Japan would also like to join the club in a strategic position to attain the position of Climate Action leader in the Asian subcontinent as skepticism revolves around China and its involvement in the debate around climate change. Japan¡¯s entry might also provide better trade and relations with Europe and North America.

China despite being the largest emitter of greenhouse gases has been extremely reluctant on Climate Action in the past as it has been critical of the Carbon border adjustment mechanism by the European Union which too has similar provisions for tariffs for polluters who do not adhere to the rules. China has also discouraged emerging economies like South Africa and Indonesia on the propositions earlier. But under post-Covid circumstances China would not like to afford an economic tariff and restriction and might eventually join the Club.

What are the Prospects of the Club?

AP

With the idea of the club still remaining a proposition, the details of the Club¡¯s rules and regulations have not been yet disclosed, and neither a proper framework has been formulated. Without the G7 coming together on Club, the idea might be relegated to another agenda in the UN Climate Summit scheduled for this week in Sharm El-Sheikh, Egypt. A large number of countries with a substantial plan must be enacted to substantiate the actions in the wake of the realization of Climate Change.

At this juncture, a new and fresh start toward Climate Change Action seems viable and necessary as the existing plans do not seem to be of many contributions. Gradually, more and more countries are realizing the problems Climate change is posing and a global forum with renewed scientific temperament and targets might help us achieve the carbon budget i.e., aimed at keeping it at 1.5 Celsius (2.7 Fahrenheit).