Marrakech: The Group of Seven major powers and the World Bank on Wednesday launched a new framework to strengthen supply chains for decarbonization-related goods, such as solar panels and batteries, by supporting low- and middle-income countries.

The move is based on a G-7 agreement in May this year. Japan, this year’s G-7 chair, will provide a total of 25 million dollars over five years to a related fund to be set up under the World Bank.

An event marking the establishment of the new framework was held on Wednesday on the sidelines of the ongoing annual meeting of the International Monetary Fund in Marrakech, Morocco. From Japan, Finance Minister Shunichi Suzuki attended it.

Under the framework, both financial and technical assistance will be provided to low- and middle-income countries that have only mined and exported mineral resources, so that they can refine and process locally mined mineral resources, as well as manufacture components and assemble products.

On the other hand, countries providing such aid aim to reduce economic security risks by broadening their suppliers of decarbonization-related goods and reducing their dependence on certain countries, such as China, for such goods.

JIJI Press