Latest news with #AngelaMerkel
Forbes
4 hours ago
- Business
- Forbes
Leadership Falters As Climate Costs Soar And Time To Act Runs Out
CHARLEVOIX, CANADA - JUNE 9: In this photo provided by the German Government Press Office (BPA), ... More German Chancellor Angela Merkel deliberates with US president Donald Trump on the sidelines of the official agenda on the second day of the G7 summit on June 9, 2018 in Charlevoix, Canada. Also pictured are (L-R) Larry Kudlow, director of the US National Economic Council, Theresa May, UK prime minister, Emmanuel Macron, French president, Angela Merkel, Yasutoshi Nishimura, Japanese deputy chief cabinet secretary, Shinzo Abe, Japan prime minister, Kazuyuki Yamazaki, Japanese senior deputy minister for foreign affairs, John Bolton, US national security adviser, and Donald Trump. Canada are hosting the leaders of the UK, Italy, the US, France, Germany and Japan for the two day summit. (Photo by Jesco Denzel /Bundesregierung via Getty Images) London Climate Action Week is set to start, showcasing what urgent, inclusive climate action looks like when cities, financiers, and citizens unite. But the energy and innovation on display in London are being overshadowed by growing inaction from global leaders. Just days after the G7 failed to deliver any meaningful policy progress, and as the EU backpedals on its green regulation agenda, a troubling gap is emerging between local ambition and failures of international leadership. This retreat is happening at the worst possible moment. Climate damage costs are skyrocketing, climate science is sounding red alerts, and economic evidence points to a clear win: green investment can grow economies, create jobs, and protect communities. The world's most powerful leaders are not just missing an opportunity, they are magnifying a crisis. To grasp its scale, we need to look at the growing economic cost of inaction. The Price Of Delay And The Need For Leadership Bloomberg Intelligence has estimated that in the year to May 2025, the U.S. incurred close to $1 trillion (or around 3% of GDP) in direct climate-related costs from floods, wildfires, infrastructure damage, and insurance losses. Globally, heatwaves, droughts, and extreme weather are disrupting supply chains, inflating food prices, and undermining financial stability. Insurers have seen annual catastrophe losses surge tenfold since the 1980s. Premiums have skyrocketed, and coverage has shrunk, especially in wildfire and storm prone regions, exacerbating economic disruption and housing unaffordability. At the same time, the European Union appears to be shelving the Green Claims Directive, retreating under political pressure precisely when markets are demanding clear, consistent regulation to guide sustainable investment. This uncertainty discourages capital and undermines momentum. These setbacks comes as the OECD's 2025 Green Growth report shows that climate action could unlock $7.4 trillion per year in investment and job creation if scaled by 2030. Yet rather than harnessing this opportunity, many leaders are hesitating. Nowhere is this hesitancy more evident than in the recent action, or inaction, of the G7, whose decisions ripple far beyond their border G7 Paralysis And The Global Ripple Effect The G7's latest Chair's Summary reaffirms familiar goals, like limiting warming to 1.5°C but offered no timelines, targets, or tools to achieve it. 'Once again, the G7 chose safe, business-as-usual declarations over the bold, future-proof action we urgently need,' said Daniela Fernandez, CEO of Sustainable Ocean Alliance. 'The G7's latest climate commitments reflect a deeper issue,' added Ibrahim AlHusseini, managing partner of climate investor FullCycle. 'Global leaders are increasingly distracted by immediate geopolitical crises, and climate, still perceived as a medium to long-term risk, has slipped down the agenda. But this is a dangerous miscalculation.' He added: 'Delay is not neutral, it's an accelerant of future instability,' with direct consequences for supply chains, migration, and global financial systems. And it's not just experts calling for change. According to the 2024 People's Climate Vote, 80% of people globally want their countries to strengthen climate commitments, and over two-thirds support a fast transition from fossil fuels. Other surveys echoes this: 89% of people across 125 countries support stronger government action, yet many mistakenly believe they are in the minority. This public mandate for bold climate action stands in sharp contrast to the political hesitancy now on display. As political will may be stalling, another sector is responding. What was once viewed as an environmental issue is now a pressing financial risk. Climate Risk Becomes Financial Risk Inaction is not just costly, it is destabilizing. The financial consequences are already unfolding across insurance markets and beyond. "We have already seen residential and commercial insurance premiums rise and availability drop in recent years, in response to growing insurer losses," warns Tom Sabetelli-Goodyer, vice-president of climate risk at FIS. They are early signs of a broader, systemic threat. As climate impacts intensify, they are cascading through the financial system, affecting asset valuations, credit risk, and the stability of entire markets. Regulators around the world have begun to integrate climate risk into their frameworks, but last week, the Basel Committee on Banking Supervision, the global standard-setter for financial regulation, added its voice with a new framework for the voluntary disclosure of climate-related financial risks. While non-binding, the guidance marks a significant step and reinforces a clear message: climate risk is no longer just environmental, it's financial. As Julia Symon, head of research and advocacy at Finance Watch put it: 'Without clear, consistent data, supervisors are flying blind, unaware of the real risks building up on balance sheets.' The Climate Clock Is Ticking Scientific indicators confirm the urgency and the danger of delay. The 2024 Indicators of Global Climate Change report shows that the average global temperature from 2015 to 2024 reached 1.24°C above pre-industrial levels, with human activity responsible for nearly all of it. In 2024 alone, global temperatures spiked to 1.52°C, temporarily crossing the critical 1.5°C threshold. More troubling still, human-induced warming is accelerating at an unprecedented rate of 0.27°C per decade, the fastest rate ever recorded. At current emissions levels, the remaining carbon budget for staying below 1.5°C could be fully exhausted within just two to five years, depending on assumptions. Scientists also point to a growing Earth energy imbalance and early signs of amplifying climate feedback loops, such as ocean heat uptake and ice melt, which could further lock in extreme changes. The window for keeping global heating within safe limits is narrowing quickly. Yet even as time runs short, the economic case for prompt action continues to strengthen. Green growth offers a rare convergence of climate responsibility and financial return. Green Growth: A Trillion-Dollar Opportunity The OECD Green Growth report emphasizes that investing in clean energy and green infrastructure is not just responsible, its smart economics. Clean energy investment now outpaces fossil fuels, and 90% of global GDP is covered by net-zero targets. The report outlines how aligning financial systems with climate goals could unlock $7.4 trillion annually in investment by 2030. 'Green growth is an approach that seeks to harmonize economic growth with environmental sustainability and helps to deliver broader development benefits,' explains Jennifer Baumwoll, head of climate strategies and policy at UNDP. Far from hindering development, the green transition can generate resilient jobs, improve productivity, and enhance long-term competitiveness. In short, the report argues that climate action is not a cost but a catalyst for growth. Countries like Mongolia and Lao PDR are already demonstrating what this looks like in practice. In Mongolia, a green finance strategy, backed by the Central Bank and a new SDG-aligned taxonomy, has mobilized $120 million in climate-aligned investment, including the country's first green bond. Green lending is targeted to grow from 2% to 10% of all bank lending by 2030. Meanwhile, Lao PDR is advancing a national circular economy roadmap to reduce waste and resource use while unlocking economic opportunity. If fully implemented, it could create 1.6 million jobs and add $16 billion to GDP by 2050. These pragmatic, investment-ready models of climate action deliver real development gains. Their progress underscores a growing global divide: while emerging economies embrace opportunity, many developed nations are falling behind, precisely when their leadership is most needed. A Shrinking Window And Defining Test Of Leadership 2025 marks a critical juncture. Countries are expected to submit new national climate plans (NDCs 3.0) ahead of COP30 in Belém this November. Yet as of late June 2025, four months after the February deadline, only a small fraction had done so. Intended to reflect increased ambition following the Global Stocktake, most submissions remain overdue, and the ambition gap continues to widen. The UN expects a surge of last-minute filings, but tardiness isn't the only concern. Most existing plans fall short of aligning with the 1.5°C target, and the policy frameworks to deliver them at scale are still lacking. The challenge is not technical though but political. Instead of advancing, many major economies are retreating, weakening targets, delaying regulations, and rolling back commitments just as the case for bold action becomes stronger. Evidence shows that a well-managed transition can boost growth, reduce inequality, and build resilience. Yet that potential is being squandered. What's needed now is not just political courage, but real leadership, capable of driving structural reform and aligning finance with planetary boundaries. Decisive action today isn't only about avoiding catastrophe, it's about exercising leadership that can shape a more stable, equitable, and liveable world. The responsibility lies with those in power to act—not later, but now.
Yahoo
6 days ago
- Business
- Yahoo
The Group of Seven summit is opening in Canada with a focus on trade, wars -- and not riling Trump
KANANASKIS, Alberta (AP) — When U.S. President Donald Trump last came to Canada for a Group of Seven summit, the enduring image was of him seated with his arms folded defiantly as then-German Chancellor Angela Merkel stared daggers at him. If there is a shared mission at this year's G7 summit, which begins Monday in Canada's Rocky Mountains, it is a desire to minimize any fireworks at a moment of combustible tensions. The 2018 summit ended with Trump assailing his Canadian hosts on social media as he departed on Air Force One, saying he had instructed the U.S. officials who remained in Quebec to oppose the G7 joint statement endorsed by the leaders of Japan, France, the United Kingdom, Italy, Germany and, of course, Canada. 'I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!' Trump posted on the site then known as Twitter. This time, Trump already has hit several dozen nations with severe tariffs that risk a global economic slowdown. There is little progress on settling the wars in Ukraine and Gaza and now a new and escalating conflict between Israel and Iran over Tehran's nuclear program. Add to all of that the problems of climate change, immigration, drug trafficking, new technologies such as artificial intelligence and China's continued manufacturing superiority and chokehold on key supply chains. Asked if he planned to announce any trade agreements at the G7 as he left the White House on Sunday, Trump said: 'We have our trade deals. All we have to do is send a letter, 'This is what you're going to have to pay.' But I think we'll have a few, few new trade deals." At stake might be the survival of the G7 itself at a time when the Trump administration has sent mixed signals about whether the president will attend the November Group of 20 summit in South Africa. What Trump opposed at the 2018 summit in Quebec wasn't just tariffs, but a focus on having alliances with a shared set of standards seeking to shape policies. 'The big dispute in Quebec were the references to the rules-based international order and that's where that famous photo comes from,' said Peter Boehm, Canada's counselor at the 2018 G7 summit in Quebec and a veteran of six G7 summits. 'I think it gave everyone the idea that G7s were maybe not business as usual.' The German, U.K., Japanese and Italian governments have each signaled a belief that a friendly relationship with Trump this year can reduce the likelihood of outbursts. 'Well, I have got a good relationship with President Trump, and that's important," U.K. Prime Minister Keir Starmer said Saturday as he flew to Canada. There is no plan for a joint statement this year from the G7, a sign that the Trump administration sees no need to build a shared consensus with fellow democracies if it views such a statement as contrary to its goals of new tariffs, more fossil fuel production and a Europe that is less dependent on the U.S. military. 'The Trump administration almost certainly believes that no deal is better than a bad deal,' said Caitlin Welsh, a director at the Center for Strategic and International Studies think tank who was part of Trump's team for the G7 in Trump's first term. The White House has stayed decidedly mum about its goals for the G7, which originated as a 1973 finance ministers' meeting to address the oil crisis and steadily evolved into a yearly summit that is meant to foster personal relationships among world leaders and address global problems. The G7 even briefly expanded to the G8 with Russia as a member, only for Russia to be expelled in 2014 after annexing Crimea and taking a foothold in Ukraine that preceded its aggressive 2022 invasion of that nation. Trump will have at least three scheduled bilateral meetings during the summit with other world leaders while in Canada, staring on Monday morning with Canadian Prime Minister Mark Carney. The U.S. president is also expected to have bilateral meetings with Mexican President Claudia Sheinbaum and Ukrainian President Volodymyr Zelenskyy, according to an administration official. The U.S. president has imposed 25% tariffs on steel, aluminum and autos, all of which have disproportionately hit Japan. Trump is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period set by him would expire. The United Kingdom reached a trade framework with the U.S. that included quotas to protect against some tariffs, but the 10% baseline would remain as the Trump administration is banking on tariff revenues to help cover the cost of its income tax cuts. Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, through some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump's first term. The Trump administration has insisted that its broad tariffs will produce trade agreements that box out China, though it's unclear how antagonizing trade partners would make them want to strengthen their reliance on the U.S. Carney, the Canadian leader, has been outspoken in saying his country can no longer look to the U.S. as an enduring friend. That might leave Trump with the awkward task of wanting to keep his tariffs in place while also trying to convince other countries that they're better off siding with the U.S. than China. 'Trump will try to coordinate the group against China's economic coercion,' Josh Lipsky, chair of international economics at the Atlantic Council, wrote in an analysis. 'But the rest of the leaders may turn back to Trump and say that this kind of coordination, which is at the heart of why the G7 works, would be easier if he weren't imposing tariffs on his allies.' __ Boak reported from Calgary, Alberta. Associated Press writer Jill Lawless contributed to this report.
Washington Post
6 days ago
- Politics
- Washington Post
The Group of Seven summit is opening in Canada with a focus on trade, wars -- and not riling Trump
KANANASKIS, Alberta — When U.S. President Donald Trump last came to Canada for a Group of Seven summit , the enduring image was of him seated with his arms folded defiantly as then-German Chancellor Angela Merkel stared daggers at him. If there is a shared mission at this year's G7 summit, which begins Monday in Canada's Rocky Mountains, it is a desire to minimize any fireworks at a moment of combustible tensions.
Associated Press
6 days ago
- Business
- Associated Press
The Group of Seven summit is opening in Canada with a focus on trade, wars -- and not riling Trump
KANANASKIS, Alberta (AP) — When U.S. President Donald Trump last came to Canada for a Group of Seven summit, the enduring image was of him seated with his arms folded defiantly as then-German Chancellor Angela Merkel stared daggers at him. If there is a shared mission at this year's G7 summit, which begins Monday in Canada's Rocky Mountains, it is a desire to minimize any fireworks at a moment of combustible tensions. The 2018 summit ended with Trump assailing his Canadian hosts on social media as he departed on Air Force One, saying he had instructed the U.S. officials who remained in Quebec to oppose the G7 joint statement endorsed by the leaders of Japan, France, the United Kingdom, Italy, Germany and, of course, Canada. 'I have instructed our U.S. Reps not to endorse the Communique as we look at Tariffs on automobiles flooding the U.S. Market!' Trump posted on the site then known as Twitter. This time, Trump already has hit several dozen nations with severe tariffs that risk a global economic slowdown. There is little progress on settling the wars in Ukraine and Gaza and now a new and escalating conflict between Israel and Iran over Tehran's nuclear program. Add to all of that the problems of climate change, immigration, drug trafficking, new technologies such as artificial intelligence and China's continued manufacturing superiority and chokehold on key supply chains. Asked if he planned to announce any trade agreements at the G7 as he left the White House on Sunday, Trump said: 'We have our trade deals. All we have to do is send a letter, 'This is what you're going to have to pay.' But I think we'll have a few, few new trade deals.' At stake might be the survival of the G7 itself at a time when the Trump administration has sent mixed signals about whether the president will attend the November Group of 20 summit in South Africa. What Trump opposed at the 2018 summit in Quebec wasn't just tariffs, but a focus on having alliances with a shared set of standards seeking to shape policies. 'The big dispute in Quebec were the references to the rules-based international order and that's where that famous photo comes from,' said Peter Boehm, Canada's counselor at the 2018 G7 summit in Quebec and a veteran of six G7 summits. 'I think it gave everyone the idea that G7s were maybe not business as usual.' The German, U.K., Japanese and Italian governments have each signaled a belief that a friendly relationship with Trump this year can reduce the likelihood of outbursts. 'Well, I have got a good relationship with President Trump, and that's important,' U.K. Prime Minister Keir Starmer said Saturday as he flew to Canada. There is no plan for a joint statement this year from the G7, a sign that the Trump administration sees no need to build a shared consensus with fellow democracies if it views such a statement as contrary to its goals of new tariffs, more fossil fuel production and a Europe that is less dependent on the U.S. military. 'The Trump administration almost certainly believes that no deal is better than a bad deal,' said Caitlin Welsh, a director at the Center for Strategic and International Studies think tank who was part of Trump's team for the G7 in Trump's first term. The White House has stayed decidedly mum about its goals for the G7, which originated as a 1973 finance ministers' meeting to address the oil crisis and steadily evolved into a yearly summit that is meant to foster personal relationships among world leaders and address global problems. The G7 even briefly expanded to the G8 with Russia as a member, only for Russia to be expelled in 2014 after annexing Crimea and taking a foothold in Ukraine that preceded its aggressive 2022 invasion of that nation. Trump will have at least three scheduled bilateral meetings during the summit with other world leaders while in Canada, staring on Monday morning with Canadian Prime Minister Mark Carney. The U.S. president is also expected to have bilateral meetings with Mexican President Claudia Sheinbaum and Ukrainian President Volodymyr Zelenskyy, according to an administration official. The U.S. president has imposed 25% tariffs on steel, aluminum and autos, all of which have disproportionately hit Japan. Trump is also charging a 10% tax on imports from most countries, though he could raise rates on July 9, after the 90-day negotiating period set by him would expire. The United Kingdom reached a trade framework with the U.S. that included quotas to protect against some tariffs, but the 10% baseline would remain as the Trump administration is banking on tariff revenues to help cover the cost of its income tax cuts. Canada and Mexico face separate tariffs of as much as 25% that Trump put into place under the auspices of stopping fentanyl smuggling, through some products are still protected under the 2020 U.S.-Mexico-Canada Agreement signed during Trump's first term. The Trump administration has insisted that its broad tariffs will produce trade agreements that box out China, though it's unclear how antagonizing trade partners would make them want to strengthen their reliance on the U.S. Carney, the Canadian leader, has been outspoken in saying his country can no longer look to the U.S. as an enduring friend. That might leave Trump with the awkward task of wanting to keep his tariffs in place while also trying to convince other countries that they're better off siding with the U.S. than China. 'Trump will try to coordinate the group against China's economic coercion,' Josh Lipsky, chair of international economics at the Atlantic Council, wrote in an analysis. 'But the rest of the leaders may turn back to Trump and say that this kind of coordination, which is at the heart of why the G7 works, would be easier if he weren't imposing tariffs on his allies.' __ Boak reported from Calgary, Alberta. Associated Press writer Jill Lawless contributed to this report.
Telegraph
6 days ago
- Business
- Telegraph
The Iran-Israel conflict calls for cool heads
The last time world leaders gathered for an economic summit in Canada it collapsed in acrimony. In a famous photograph, Angela Merkel, then German chancellor, could be seen berating a seated and petulant-looking Donald Trump in an image that symbolised the breakdown in global harmony. Suddenly, allies were pitched against one another on matters they once approached with a common purpose, whether it be trade or security. Apart from Emmanuel Macron, the French president, every other leader in the photograph has gone. Mr Trump, of course, is back and the same divisions are apparent. One of the disagreements at that G7 meeting was over his decision to scrap a deal brokered by Barack Obama and the UN security council to divert Iran from its efforts to develop a nuclear weapon capability. Mr Trump took the view that Iran could not be trusted, something seemingly confirmed by Tehran's continued enrichment programme. Those who argue this would have been halted had the original deal, known as the Joint Comprehensive Plan of Action (JCPOA), been carried through need to explain why they would have any confidence in the Iranian regime to abide by its terms. Most critical of all were the Israelis, who feared the JCPOA was just a cover for Iran to continue work on a nuclear weapon with impunity. They were never going to let that happen whatever deal was reached by countries who did not face the same existential threat from the mullahs in Tehran. The G7 in Canada, therefore, which had been expected to focus on Ukraine, Russia and tariffs, is now reaping the whirlwind of the failure to deal with Iran until it was almost too late. The regime has fomented conflict throughout the region, sponsoring groups such as Hezbollah and Hamas intent on seeing Israel destroyed. Most of the problems in the Middle East can be laid at Iran's door, not that the idiots waving Iranian flags in London at the weekend understand that or care since their hatred of Israel – the only democracy in the region – is all-consuming. The impact of a prolonged war hitting energy supplies just as the world economy is dealing with tariffs and falling output will be considerable, especially if Iran closes the Strait of Hormuz. The G7 leaders of democratic states need to have a clear eye on who the enemy is and to give Israel their full support in dealing with this evil menace.
