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028 G7 MEMBER STATESIMPLICATIONS OF THE PARIS AGREEMENT FOR THE EU CLIMATE AND ENERGY POLICYThe Paris Agreement is a huge success for the United Nations and intergovernmental cooperation, and the first major multilateral deal of the 21st century. As a universal and legally binding agreement, it sends a clear signal to all stakeholders, investors, businesses, civil society and policy-makers that the global transition to clean energy is here to stay. The Paris Agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below 2°C – and pursue efforts to limit the temperature increase to 1.5°C.The European Union was instrumental in making the Agreement possible, with its experience of effective and robust climate policy, tradition of negotiations, and rules-based international co-operation. Now that we have the Agreement, it cannot lie dormant. Reaching consensus was only the first step. We must continue to work together to reach our shared goal of ensuring a stable and habitable world for future generations. We now need actions by all.The EU has agreed an ambitious domestic target of at least 40 per cent greenhouse gas emission reduction by 2030 and we are passing the necessary legislation to make it a reality. We know we can deliver on this commitment because over the last two decades, thanks to the EU policies, we have grown our economy by almost 50 per cent while reducing our emissions by over 20 per cent. MIGUEL ARIAS CAÑETE, THE EUROPEAN COMMISSIONER FOR CLIMATE ACTION AND ENERGYTHE TRANSITION TO A CLEAN ENERGY ECONOMYAccording to the International Energy Agency, the full implementation of the climate plans which countries presented in the run-up to Paris will lead to investments of US$ 13.5 trillion in energy efficiency and low-carbon technologies by 2030, an annual average of USD 840 billion. The main opportunity lies not only in scaling up investment, but also in redistributing it across energy sources and sectors, and across supply and demand. Investment historically allocated to fossil fuels will need to shift towards renewable fuels and other sources of clean energy. By 2030, according to the International Energy Agency, we expect investment in renewables to be almost three times the investment in fossil fuel power plants, while investment in energy efficiency – led by the transport and building sectors – is expected to equal investments in other parts of the energy system.This shift needs to be catalysed by carbon pricing. This will give industry a tangible economic incentive to embrace decarbonisation and contribute to a global level playing field for the clean energy transition. In the EU, we are in the process of reforming and strengthening our emissions trading system (ETS) to ensure that energy sector and energy intensive industries deliver the emission reductions needed to reach our 2030 climate target. More than 10 years of experience with the ETS has demonstrated that building a well-functioning carbon market takes time. The EU experience can be valuable for our “THE G7 SUMMIT PROVIDES US WITH A CRUCIAL OPPORTUNITY TO ALIGN PRACTICES AND PRESENT TO THE WORLD OUR SUPPORT FOR NOT ONLY THE SIGNING AND RATIFICATION OF THE PARIS AGREEMENT, BUT ALSO THE IMPLEMENTATION OF THE INTENDED CONTRIBUTIONS ”