An intense week of important meetings on key topics to be addressed at the G7 Ministerial Meeting in Bologna, on June 11-12, has just ended.
At the OECD headquarters, the Italian Ministry of Environment organized a meeting with representatives of the other G7 Countries for a joint update regarding the 2018 Facilitative Dialogue as foreseen by the Paris Agreement. The meeting’s aim was to focus the G7 countries’ expectations on the 2018 Facilitative Dialogue and to kick off a first discussion on a possible joint message that the G7 might convey to support this process.
Over the following days, on March 14 and 15, the Italian Ministry of Foreign Affairs hosted a workshop on Environmentally Harmful Subsidies (EHS). EHS are grants or tax reductions/exemptions that allow consumers, users or producers to supplement their income or lower their costs, but that have a general negative effect on the environment. Such subsidies are common in sectors such as fossil fuels, transportation and water. During last year’s Summit in Japan, the G7 countries confirmed a commitment to eliminate inefficient fossil fuel subsidies and encouraged all other countries to do the same, by 2025.
The gradual reduction of all EHS is a key component of the ecological fiscal reform that aims at shifting the fiscal burden to the production and consumption of goods and services that are harmful to the environment.
Representatives of the G7 governments, international organizations and scientific community experts attended the workshop in Rome. It was an opportunity to analyze a draft OECD report depicting the current state of the ecological fiscal reform (EFR) and of the Environmentally Harmful Subsidies, in order to evaluate the next steps to be taken by G7 countries to gradually eliminate these subsidies.
Source: G7 Italy