In a significant move towards addressing climate change and fostering clean energy technologies, Australian Prime Minister Anthony Albanese and U.S. President Joe Biden have joined forces to establish the Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact (the Compact). The Compact was signed on 20 May at G7 Hiroshima Summit 2023 in Japan.
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The structure aims to coordinate policies and investments to support the expansion and diversification of responsible clean energy and critical minerals supply chains, accelerate market development for established and emerging technologies, meet the Indo-Pacific’s growing energy and adaptation needs, and strengthen the region’s role as a driver of resilient and sustainable global prosperity.
By partnering on climate initiatives, critical minerals, and clean energy technologies, the two countries seek to accelerate progress in these crucial areas and drive global innovation.
Both countries are determined to identify specific initiatives towards the Compact’s objectives during the next 12 months.
Addressing global challenges
One of the key objectives of the Compact is to enhance bilateral collaboration on climate change mitigation and adaptation strategies. Australia and the United States will work closely to develop and implement effective policies, share best practices, and foster innovation in renewable energy, energy storage, and other clean technologies. By leveraging each country’s unique expertise and resources, the Compact aims to accelerate the deployment of clean energy solutions and reduce greenhouse gas emissions.
Another significant aspect of the Compact is the focus on critical minerals, which are essential for the production of clean energy technologies such as wind turbines, solar panels, electric vehicle batteries, and energy storage systems. Australia and the United States are both rich in these critical minerals, and by collaborating on their exploration, extraction, processing, and supply chain development, they aim to ensure a secure and sustainable source of these minerals for the global clean energy industry.
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By establishing the “Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact,” Australia and the United States are setting an example for other nations to follow. The collaboration between these two influential countries sends a strong message to the international community about the importance of working together to address the pressing challenges of climate change and sustainable development.
The partnership between Australia and the United States under the “Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact” holds significant promise. By aligning their efforts, the two countries can leverage their respective strengths and resources to make substantial progress in combatting climate change, securing critical minerals, and driving clean energy transformation. Australia and the United States intend to coordinate efforts in the Indo-Pacific to increase clean energy manufacturing and exports to support the region’s clean energy transformation goals, including through collaboration in the Quad, other multilateral fora, and particularly with developing countries.
It is worth noting that the partnership between Australia and the United States is not limited to government cooperation alone. The Compact encourages collaboration between industry stakeholders, research institutions, and civil society in both countries. This multi-stakeholder approach will leverage diverse perspectives and resources, promoting the development and implementation of innovative clean energy solutions. By fostering a robust network of collaboration, the Compact aims to drive sustainable economic growth, create jobs, and enhance the well-being of communities in both nations.
G7 Summit at a glance
The G7 Summit is an annual international gathering of the leaders of France, the United States, the United Kingdom, Germany, Japan, Italy, and Canada (in descending order of rotating leadership), as well as the European Union (EU).
In the 1970s, developed countries confronted with numerous issues such as the Nixon shock (1971) and the first oil crisis (1973) saw the need to establish a forum to completely discuss policy coordination of macroeconomic, currency, trade, and energy, among others, at the level of leaders. The inaugural Summit was held in November 1975 at the Chateau de Rambouillet (on the outskirts of Paris), offered by then-French President Giscard d’Estaing, with participation from six countries: France, the United States, the United Kingdom, Germany, Japan, and Italy. Summits have been held annually since then, with a rotating Presidency.
The leaders of the G7, which shares fundamental values such as freedom, democracy, and human rights, meet at the G7 Summit to exchange candid views on important challenges facing the international community at the time, such as the global economy, regional affairs, and various global issues, and to issue a document as a result of such discussions.
Under the leadership of the G7 leaders, who share fundamental beliefs, the G7 has effectively responded to significant challenges confronting the world community.
Action towards a sustainable and prosperous future for generations to come
The “Australia-United States Climate, Critical Minerals and Clean Energy Transformation Compact” represents a significant step forward in international efforts to combat climate change and accelerate the clean energy transition. The collaboration between Australia and the United States brings together two nations with immense potential, resources, and expertise. Through this partnership, they can lead by example and inspire global action towards a sustainable, low-carbon future and hasten the transition to net zero emissions.
The Compact sets the stage for future collaborations, innovation, and transformative action. As the world grapples with the urgent need to address climate change, the partnership between Australia and the United States serves as a beacon of hope and a reminder that international cooperation is crucial in overcoming global challenges. By working together, nations can create a sustainable and prosperous future for generations to come.
Sources: G7 Hiroshima Summit 2023 (Official website), Prime Minister of Australia’s Joint Statement 20 May 2023
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