G7 leaders joint press conference 6/26/22 Transcript

Olaf Scholz: (00:00)
Germany’s contribution to collective G7 support of 8.5 billion US dollar over the next three to five years, but we won’t stop there. In a joint effort with G7 partners, we are currently working towards additional GTPs within Indonesia, India, Senegal, and Vietnam. The public sector alone will not be able to close the huge investment gap we faced in many parts of the world. This is why we are promoting innovative instruments, such as the Emerging Markets Climate Action Fund in order to mobilize private investment to for sustainable infrastructure.

The G7 is committed to support the Emerging Markets Climate Action Fund and Germany is contributing additional 30 million Euro adding to 25 million Euro we have provided last year. The fund can mobilize up to 50 Euro private capital for every single Euro public money we provide. With our total contribution of 55 million Euro, we can mobilize up to 2.75 billion Euro. Just like our broader G7 agenda, our work on promoting infrastructure globally is also affected by the current geopolitical situation.

We have therefore discussed how our investment globally in climate neutral and low carbon energy, including gas, can help us as a temporary response to Russia’s use of energy as a weapon. Given the progress we have achieved time is ripe to showcase our offer to the world under a common roof. I’m convinced the G7 makes a stronger, better, and more convincing offer to partners globally. But beyond steps we have been taking, this is a long term undertaking. Germany will move this work forward beyond the annual summit to make progress towards an equitable world and will hand over an even stronger joint initiative to [inaudible 00:02:09] end of this year.

And now I would like to hand over to the United States President.

President Joe Biden: (02:18)
Thank you very much. Well, good afternoon, folks. Our nations and our world stand at genuine world stand at a genuine inflection point in history. Technology’s made our world smaller, more immediate and more connected. It’s opened up incredible opportunities, but also accelerated challenges that impact on all of us. Managing global energy needs, taking on the climate crisis, dealing with the spread of diseases and the choices we make now in my view are going to set a direction of our world for several generations to come. These challenges are hard for all of us, even nations with resources of the G7, but developing countries often lack the essential infrastructure to help navigate global shocks like a pandemic. So they feel the impacts more acutely, and they have a harder time recovering. In our deeply connected world, that’s not just a humanitarian concern, it’s an economic and a security concern for all of us. That’s why one year ago when this group of leaders met at Cornwall, we made a commitment. The democratic nations of the G7 would step up, step up and provide financing for quality, high standard, sustainable infrastructure in developing and middle income countries.

What we’re doing is fundamentally different because it’s grounded on our shared values of all those representing the countries and organizations behind me. It’s built using the global best practices, transparency, partnership, protections for labor and the environment. We’re offering better options for countries and for people around the world to invest in critical infrastructure that improves the lives, their lives, all of our lives and delivers real gains for all of our people, not just at G7. All of our people. Today, we officially launched the partnership for global infrastructure and investment.

We collectively have dozens of projects already underway around the globe. And I’m proud to announce the United States will mobilize $200 billion in public and private capital over the next five years for that partnership. We’re here today because we’re making this commitment together as a G7 in coordination with one another to maximize the impact of our work. Collectively, we aim to mobilize nearly $600 billion from the G7 by 2027. These strategic investments are areas of critical to sustainable development and to our shared global stability, health, and health security, digital connectivity, gender equality and equity, climate and energy security.

Let me give you some examples of the kinds of projects that are underway in each of these areas. First, health. Two years ago, COVID-19 didn’t need any reminders about how critical investments in healthcare systems were and health security is both to fight the pandemic and to prepare for the next one, because it will not be the last pandemic we have to deal with. That’s why the United States together with the G7 partners and the World Bank are investing in a new industrial scale vaccine manufacturing facility in Senegal. When complete, we’ll have the potential produce hundreds of millions of doses of vaccine annually for COVID-19 and other diseases.

It’s an investment that will enhance global vaccine supplies as well as improve access and equity for developing countries. Second, in the digital area. Our economy’s future increasingly depends on people’s ability to connect to secure information and communications technologies. We need to strengthen the use of trusted technologies so that our online information cannot be used by autocrats to consolidate their power or repress their people. That’s why the digital invest program is mobilizing $335 million in private capital to supply secure network equipment in Africa, Asia, and Latin America. And the US government also supported the successful bid by an American company SubCom for a $600 million contract to build a global subsea telecommunications cable. This cable will stretch from Southeast Asia through the Middle East and the horn of Africa to Europe. This will be essentially to meeting the growing demand for reliable security, high tech connectivity in three key regions of the world. Third, gender. When women and girls have the ability and the opportunity to participate more fully in their societies and economies, we see positive impacts not only in their communities, but across the board.

We have to increase those opportunities though for women and girls to thrive, including practical steps to make childcare more accessible and affordable as we continue the vital work to protect and advance women’s fundamental rights. The United States is committing $50 million over five years to the World Bank Global Childcare Incentive Fund. This public private partnership supported by several G7 partners will help countries build infrastructure that makes it easier for women to participate equally, equally in the labor force.

Fourth, and very important, climate and energy. We’re seeing just how critical this is every day. The entire world is feeling the impact of Russia’s brutal war in Ukraine and on our energy markets. We need worldwide effort to invest in transformative clean energy projects to ensure that critical infrastructure’s resilient to changing climate. Critical materials that are necessary for our clean energy transition, including the production of batteries need to be developed with high standards for labor and environment.

Fast and reliable transportation infrastructure, including railroads and ports, is essential to moving inputs for refining and processing and expanding access to clean energy technologies. For example, the US government just facilitated a new partnership between two American firms and the government of Angola to invest $2 billion in building the new solar projects in Angola. It’s a partnership that will help Angola meet its climate goals and energy needs while creating new markets for American technologies and good jobs in Angola and I suspect throughout Africa.

And in Romania, the American company, NuScale Power will build the first of its kind small modular reactor plant. This will help bring online zero emission nuclear energy to Europe, faster, more cheaply, and more efficiently. The US government is helping advance the development of this groundbreaking American technology, which will strengthen Europe’s energy security and create thousands of jobs in Romania and the United States. These deals are-

Romania and the United States. These deals are just some of what’s in store and we’re ready. We’re ready to get to work together, all of us to lead efforts, to lead US efforts. In my case. I appointed Amos Hochstein, my special presidential coordinator to deal with the rest of our colleagues.

I’ll lead the US whole government approach to drive a coalition and a collaboration with the G7 and our partners around the world, including private sector and multilateral development banks. I want to be clear this isn’t aid or charity. It’s an investment that will deliver returns for everyone, including the American people and the people of all our nations. It’ll boost all of our economies. And it’s a chance for us to share our positive vision for the future and let communities around the world see themselves and see for themselves the concrete benefits of partnering with democracies. Because when democracies demonstrate what we can do, all that we have to offer, I have no doubt that we’ll win the competition every time. Thank you. Now I invite president von der Leyen to the podium.

Ursula von der Leyen: (11:19)
Thank you very much, Joe. Mr. President, thank you Olaf, [foreign language 00:11:23]. We’ve just tried to overcome a global pandemic and it shook the global economy. And then as the global economy was just recovering, Russia’s vicious attack on Ukraine happened driving prices up everywhere from food to energy and casting deep uncertainty, especially in the most fragile countries.

These are very severe challenges. We will tackle them head on, and this is why G7 partners are gathered here, but this must not and it will not divert us away from our affirmative agenda. To show the world that democracies, when they work together, provide the single best path to deliver results for our people and people all over the world. On climate, on health security and on digital innovation. And indeed last November at COP26, thank you again, Boris for the initiative, we announced our plans to step up globally investments in climate positive infrastructure.

This was our response to the commitment we made at Carbis Bay and I will never forget the start of this initiative at Glasgow together with you, Joe, and you Boris, it was the beginning of a success story. Today the world needs these investments more than ever, and that is what the Partnership for Global Infrastructure and Investment is all about. So now what should we do? We should work side by side. And this is the one and only way to maximize the potential of our investments and to demonstrate the power of development finance, when it reflects democratic values.

That is transparency, inclusivity, and sustainability. When it embraces high standards for the environment and for the workers. And when it mobilizes the private sector. That’s what success looks like. On our side Europe’s response to the world’s investment gap is Global Gateway. It’s going to be under the roof of the global partnership for infrastructure and investment.

It’s the team Europe approach and to the $200 billion that have just been announced by the president of the United States team Europe is mobilizing 300 billion Euros till 2027, over the next seven years, from both public and private sources. 300 billion Euros for sustainable, quality infrastructure and also for health infrastructure. Investments that are transparent and that improve everyday lives and bring real benefit for the communities on the ground.

Global Gateway is fully at work and we are listening closely to the recipient countries so that we can better understand their needs and deliver the biggest impact. We already have many great examples to share, some of them have already been named. The mRNA vaccine manufacturing plants, for example, we just extended this successful program to Latin America too. But for example, also the great green wall, a project for food security and land restoration on the continent, or take the submarine fiber optic cable, Ella, linking Europe to Latin America, the upcoming clean hydrogen project with Egypt, Namibia and Chile.

And for example, constructing a port to connect Christmas Island in the South Pacific to the rest of the world. These are projects in the right direction to travel. They are designed and implemented in full consultation and partnership with the countries and population concerned, because that’s our way to do business.

So my point is we need to see more of these projects get off the ground in every corner of the earth. And for this, we really need as democracies to pull our common weight. The European Union and Japan, for example, are already doing that [inaudible 00:15:52] as part of our connectivity partnership. Or South Africa has been named where all G7 are supporting the just energy transition. And we will continue our work and do more projects together. We will optimize our collective power.

Because it is up to us to give a positive, powerful investment impulse to the world, to show our partners in the developing world that they have a choice and that we intend to step up in solidarity to meet their development needs. In doing so we’ll show once again, that democracies are prepared and meet the moment. Therefore, my dear friends let’s continue the good work. Thank you.

Speaker 1: (16:35)
You want take these?

So now I may ask the prime minister of Japan, Fumio Kishida, to take the floor.

Fumio Kishida: (17:03)
[Foreign language 00:17:03].

Speaker 2: (17:04)
The initiative by Joe and Olaf, infrastructure investment is indispensable for the promotion of productivity and prosperity across the world. Infrastructure such as ports and harbors, railways or airports, underpin the lives of the people and economic activities and will be the foundation of the country’s development. However, that does not mean that the development of a large amount of infrastructure would suffice even if the initial cost is inexpensive. It may lack economic efficiency in view of the life cycle as a whole, or if infeasible debt repayment plans cause the recipient countries to default.

Speaker 2: (17:54)
It would, after all, inhibit the growth of that country, therefore in accordance with the G20 principles for quality infrastructure investment, which incorporates transparency, openness, economic efficiency, and sustainability and others, it is important for the G7 members to unite and promote quality infrastructure investment. From such perspective our country will announce that in the next five years, we will aim to realize more than $65 billion of infrastructure assistance and mobilization of private sector capital.

Speaker 2: (18:35)
In addition to the challenges such as COVID-19 or climate change at the moment due to the aggression of Ukraine, the global economy is facing price spikes of energy and food or the disruption of supply chains. In order to deal with these situations, quality infrastructure investment again is indispensable. So the development of quality infrastructure is also crucial for the realization of a free and open Indo-Pacific. For the Indo-Pacific region we will work on railways and airports that contribute to regional connectivity or the development of ports and harbors, for maritime security and the reinforcement of economic security, including cybersecurity. Going forward Japan will execute international cooperation by appropriate, efficient and strategic use of ODA and expand ODA and will strengthen diplomatic efforts and will continue to deepen our collaboration with respective countries, including the G7. Thank you.

Now, I would ask the prime minister of Canada Justin Trudeau to take the floor.

Justin Trudeau: (20:03)
[inaudible 00:20:03].

Thank you everyone. It’s good to be here with President Biden, Chancellor Schultz, and everyone participating in this event today. A year ago at the G7 Summit in the UK, we made the commitment to change our approach to investment for infrastructure with the goal of strengthening our partnership with others around the world. [foreign language 00:20:25].

Speaker 3: (20:28)
… will need to work together in order to overcome the gaps that exist in infrastructure in developing countries. And it’s essential that we do this in order to promote sustainable development, create jobs, and promote trade whilst protecting the environment.

… meeting in Rwanda this week with Prime Minister Boris Johnson, where we had the opportunity to talk about these challenges with many African leaders. And earlier this month in Los Angeles, I met with my co-chair of the UN Secretary General’s Sustainable Development Goals Advocate’s Group, Prime Minister Mia Mottley of Barbados. We focused on mobilizing all possible resources, government, the private sector, multi-lateral development banks, and philanthropic foundations.

Since the G7 last year, we’ve made significant progress together, including commitments to support countries in managing their own energy transitions away from coal and other fossil fuels. Canada doubled its international climate finance commitment to $5.3 billion over five years, in large part to support these efforts, which include a $1 billion investment in the Accelerating Coal Transition Program. Of course, if we want to close the infrastructure gap, we have to find ways to incentivize greater private sector investment, because no amount of public money can single-handedly fix this issue. That’s why at home, organizations such as our Development Finance Institute, FinDev Canada, is helping build a blended finance platform in partnership with key institutional investors. We’re doing this to lower the risks for private sector partners and put their capital to work, to help solve today’s big problems.

Canada’s private sector is already a significant investor in global infrastructure, and we’re going to help them do even more of it. [foreign language 00:22:27].

Speaker 3: (22:28)
We know that a great deal of work still remains to be done by all of us. We must remain focused, determined, and united. And today we reaffirm once again, our commitment, vis-a-vie our partners to take forward this infrastructure and development program.

I look forward to continuing to work with you all during the summit, and mostly over the years to come. [foreign language 00:22:58].

Now, I asked the President of the European Council, Charles Michel, to speak to us.

Thank you, Chancellor Olaf Scholz, thank you, [inaudible 00:23:12] United States for designing this event. The EU fully support the G7 partnership on global infrastructure investment, and the reason is simple. We have always been a leader incorporating with developing countries. 46% of global development aid comes from the European Union, and everywhere almost 70 billion euros go to fund more peace, more prosperity and more development. The G7 is committed to value, standards, transparency, principles and so is the EU. We focus on smart, clean and secure investments in sustainable infrastructure, in digital, climate, energy, or transport. And we also invest in the power and potential of people in their education and health, and in cutting edge research.

The EU is a project of peace and prosperity anchored in the rule of flow and multilateralism. We value our partners around high standards of human, social and religious rights, and our G7 partnership wants to drive forward infrastructure that’s sustainable, inclusive, resilient, and high quality in emerging markets and in developing countries. For instance, with investments in vaccines and medicine production, notably in African countries. Multilateral development banks will play a catalyst role in mobilizing private capital, along with our public support.

The European Union is moving forward with our global gateway initiative at our EU Africa Summit last February, we announced an Africa European investment package of 150 billion euros. We are investing in many country’s projects, in Africa and with Africa. The submarine Euro Africa gateway cable, and the local pharmaceutical operation are two good examples. In [inaudible 00:25:25] we are very engaged in the field of sustainable connectivity and transport, energy and technology. In conclusion, we need values and standards, and that’s why we are fully on board. I believe and am convinced that the G7 and the EU are taking the right direction for a more stable and forward-looking partnership. I thank you.

The last that will speak here to us is the Prime Minister of Italy, Mario Draghi.

Mario Draghi: (25:59)
Thank you, all. I’ve just two words after everything has been said. This group of countries has being the largest financier in assistance to investment projects in develop countries. We have to do more, and we also want to be this effort widely acknowledged in partnerships with developing countries. Multilateral development banks, and especially the World Bank will be mobilized even further, together with the private sector. Again, a wide effort of partnership with developing countries has to be undertaken.

You’ve heard the many areas in which these investment projects are going to be undertaken, but on two areas I want to put more stress. One is energy and the other one is healthcare. Energy, it’s quite clear that in the present situation we’ll have short-term needs, that will require large investments in gas infrastructure in developing countries and elsewhere. But we have to make sure that they can be retroverted to carry hydrogen. So that’s a way to reconcile short-term needs with long-term climate needs. And also many developing countries, and one continent, Africa, is exceptionally suited for investments in renewables. And that’s where I would expect all our countries to fund, identify and design many, many investment projects in this area.

On vaccines, again, this group of countries, the European Union and the United States, it’s been by far the largest donor. This group of countries, including Canada and Japan, by far the largest donors of vaccines and will continue many initiatives in this field. But now it’s clear that more is needed, namely to enable African countries and other countries to produce the vaccines on their own land, so that the vaccine could be readily available to their people. Thank you.

Thank you to you all.

Marina Evenstein: (28:41)
So if you’re just joining us now, we’ve been listening to remarks by leaders at the G7 Summit taking place in Southern Germany. And to unpack some of those comments and the topics that were talked about, I’m joined now by DW’s Brussels Bureau Chief Alexandra von Nahmen, who was listening to that press conference from just outside the summit venue. Hello to you Alexandra. And with me in the studio is Thomas Sparrow’s DW’s political correspondent. Thomas, I’d like to start with you. It seems that the big announcement made by the G7 leaders was the launch of this partnership for global infrastructure and investment, an enormous amount of money being put in that. What is the significance of this initiative?

Thomas Sparrow: (29:25)
So on the one hand, you have, let’s call them, more pressing issues. We’ve been discussing them all day, that have to do with the war in Ukraine, with Russia and so on, so sanctions or military aid, but this here is proof that the G7 goes well beyond those immediate issues and that it tackles other aspects as well, other challenges as well. It’s what [inaudible 00:29:49] actually described as an affirmative agenda. So basically working with other countries around the world, in some of the big global challenges. President Biden of the United States basically stressed that when it comes to global health-

Basically, stress that when it comes to global health challenges for example, or global climate challenges, it’s actually some of the developing countries around the world that face the biggest problems, simply because they haven’t got the necessary infrastructure to deal with these kind of challenges. And as such, that’s why the G7 group have decided to precisely focus on these issues to try and work hand in hand with some of those countries around the world when it comes to gender issues, when it comes to global health, when it comes to climate, when it comes to a wide range of issues. Each one of those leaders actually gave concrete examples of how they are helping, let’s say, specific countries or specific regions in the world.

One concrete example was the development of vaccines in African countries, but it basically shows that in the case of the G7, it’s not only about discussing the most pressing issues, the most urgent issues, the issues that everyone is talking about, but that it’s also about discussing other aspects that may beyond the agenda. And in this particular case, this affirmative agenda that von der Leyen mentioned is specifically this partnership for global infrastructure.

Well, something else that von der Leyen stressed very much is as she put it, democracies working together provide the best results, the best path for results for everyone, whether it’s on climate or on health or on security. Alexandra, I couldn’t help, but think that this was in some way a reference to the competing models of types of governments and nations that we’re seeing as the world becomes increasingly polarized. So as democracies being pit against the authoritarian states, what did you make of Ursula von der Leyen’s comments and others referring to democracies?

Alexandra: (31:51)
Well, I think that you are totally right. And of course, what we need to understand that this relaunch of this global investment infrastructure and investment program, this is aimed at countering China’s influence. That is why not only European commission president, Ursula von der Leyen, but also you ask President Joe Biden. They’re both stress as well as other leaders there that they want to advance democracies in developing countries that this whole program is based on shared values.

Alexandra: (32:29)
They want to promote, for instance, gender quality. They want investments in green technologies, and they don’t want any strings to be attached to this help and this investments. And this is meant clearly to be an alternative to China Belt and Road Initiative that has been criticized as a tool for the Chinese government to advance its interests. And of course, enhance its influence worldwide. And we had a lot of examples that for instance, countries who borrowed money to be able to participate in this Belt and Road Initiative ended up in deep debts. So that is this promise by the G7 leaders that this is not going to be happening with developing countries participating in this partnership. However, let me just add this. Of course, we are speaking here about $600 billion US dollars as US President Joe Biden said, but this is still not enough money compared with what China is investing. And that is why the leaders are stressed that it cannot be only about public funding. They need private funding as well.

And now, Thomas, we also heard from Joe Biden talking about how the choices that are now being made will set the direction of the world for generations. How else can G7 nations shift to the direction of the world through these investments?

Well, one thing before I address that because Alexandra’s comment just now reminded me of a sentence that actually stuck with me. I think it was from Ursula von der Leyen when she said, this is how we do business. So basically presenting those projects. And I couldn’t agree with Alexandra more that this is certainly a sort of parallel or a contrasting project when you look at China’s Belt and Road Initiative, it is the way in which these groups of nations want to do business. They want to cooperate with other countries around the world. This is also not exempt of controversy, but they’re basically trying to focus on certain areas where they can cooperate with countries around the world that can also help them in one way or another. So Joe Biden clearly stressing that this was not aid that they were giving countries around the world, that this was something that will ultimately benefit these countries as well, that are talking. That they would also refer to their own security and their own wellbeing.

So when you talk about renewable energies, when you talk about climate proposals in general, when you talk about global health and the pandemic that we’ve just had, these are all issues. And I think there is a clear understanding among these group of leaders, that the problems that affect one group of nations around the world certainly can have an impact thousands of kilometers or thousands of miles far away. And that’s why there is this need to cooperate on projects. And in this particular case, we’re talking about seven countries that do have a lot of money at their disposal. And that certainly can bring about some of those projects that they discuss, whether it’s putting solar panels in one country or working hand in hand with others about food security, or talking about gender equality, and so on. There were certain areas that were mentioned during their respective speeches, but it was all about this idea of how they do business. And that is business that they do in contrast to other ways around the world. In particular, the case that China does it.

DW’s political correspondent, Thomas Ferrell here in the studio with me and Alexandra [inaudible 00:36:14] who’s been reporting from the location of the G7 Summit in Southern Germany. Thank you so much to both of you for all of your insights. We’d like to turn our attention now to the war in Ukraine and multiple explosions were heard on the Southern outskirts of the capital Kiev. Those came just hours after Russian missiles struck the city center, severely damaging residential buildings.

Speaker 4: (36:46)
A missile strikes a Kyiv apartment block, one of 14 incoming rockets this morning authorities say. It’s been three weeks since the last attack, but if Kyivians were lulled into a sense of security, they are again alert to the Russian threat.

Speaker 4: (37:07)
Rescuers help a person stuck under the rubble. A seven year old girl is pulled to safety alive. Kyiv mayor, [inaudible 00:37:19] said the strike was a warning to Ukrainians ahead of a crucial NATO summit being held next week. A day earlier, Vladimir Putin warned NATO not to pursue what he called confrontational policies. In a meeting with Belorussian leader Alexander Lukashenko, Putin announced that he would deliver nuclear capable missiles to his ally in the coming months.

Speaker 4: (37:45)
Hours before, Ukrainian fighters lost control of Sievierodonetsk leaving the industrial city in Russian hands after weeks of street battles. Ukraine called this retreat a tactical withdrawal to fight from higher ground in Lysychansk on the opposite bank of the river. President Zelenskyy vowed the battle was not lost.

Speaker 4: (38:10)
“All our cities, Sievierodonetsk, Donetsk, Luhansk, we’ll get them all back. Every week, we go to [inaudible 00:38:18]. Not a single day, we forget about Melitopol, about [inaudible 00:38:22], about [inaudible 00:38:22] Mariupol, all of these cities in Ukraine, which are temporarily occupied, we’ll get them back

Speaker 4: (38:29)
As the battle for Lysychansk now ramps up, the people of the twin cities are fleeing west and Russia has taken another piece of Ukraine.

That’s the latest on DW News. I’m Marina Evenstein. From me and the team, thanks for watching.

G7 leaders joint press conference 6/26/22 Transcript

Other Related Transcripts

Stay updated.