G-7 to help emerging economies move up supply chains for EVs, solar panels
Partnership with World Bank intended to develop manufacturing, cutting reliance on China
TOKYO -- The Group of Seven rich nations is considering a partnership with the World Bank to build more resilient supply chains for clean-energy technology by providing funding and other support to emerging markets, Nikkei has learned. The G-7 aims to lift these countries beyond resource extraction into the more profitable business of manufacturing products like electric vehicles and solar panels, by helping them secure the needed technology and infrastructure funding.
The G-7 is considering contributing capital to the World Bank for the effort. The hope is to spur more diversified supply chains, reducing the need to rely on China for strategically important products as the global decarbonization push accelerates. The proposal will be made at a meeting of G-7 finance ministers and central bankers in Japan starting Thursday, with the goal of reaching an agreement at next week's leaders summit in Hiroshima. The specifics would be hammered out within the year.
G-7 host Japan has invited outside countries including India and Indonesia to both meetings, where the proposal will be presented as a new avenue to support developing countries, such as resource-rich African nations. Rich nations will provide technical support and training. G-7 finance ministers and central bankers affirmed their intent to "support low- and middle-income countries to play bigger roles in supply chains" at their previous meeting last month in Washington.
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