G-7

Why is in news? G-7 approves 15.5 billion US dollar deal with Vietnam to help cutting climate-damaging pollution

A group of nine rich industrialized nations has approved a deal to provide Vietnam with 15.5 billion US dollars to help the Southeast Asian nation move faster from coal power to renewable energy, cutting its climate-damaging pollution.

The Group of Seven major economies, along with Norway and Denmark, said in a statement that the aim is to help Vietnam reduce its emissions to “net zero” by 2050.

It is a goal which experts say needs to be met globally to cap global warming at 1.5 degrees Celsius.

The Just Energy Transition Partnership with Vietnam is among a series of agreements that developing and rich nations are negotiating.

The first such deal was signed with South Africa last year 2021, and a similar agreement was reached with Indonesia last month.

The British Prime Minister said that Vietnam is a dynamic, emerging economy at the heart of Southeast Asia. He said the investment they are making today means the country can cut its emissions while simultaneously creating new jobs and growth.

G-7:

The G7 is an informal grouping of advanced democracies that meets annually to coordinate global economic policy and address other transnational issues.

The member countries include the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom.

Proponents say the forum’s small and relatively homogenous membership promotes collective decision-making, but critics note that it often lacks follow-through and excludes important emerging powers.

Russia’s membership was suspended in 2014 over the annexation of Crimea.

It was formed in 1973. The G7 is not based on a treaty and has no permanent secretariat or office.

It is organized through a presidency that rotates annually among the member states, with the presiding state setting the group's priorities and hosting and organizing its summit; Germany currently presides for 2022.