Carbon offsets for companies would fund developing countries' energy

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The US is creating a carbon-offset plan for corporations that would fund developing countries' moves to clean energy. Presented by PwC.

"While the announcement proposes some improvements to the current market — like supporting adaptation and excluding fossil fuel providers — it should not be branded as a climate-finance tool if it's being used to generate carbon offsets," said Jonathan Crook, a policy expert at Carbon Market Watch, a watchdog group."Buying emissions reductions from developing countries is not the same thing as channeling climate finance and raises questions about who can count the reductions.

Passing the 1.5-degree threshold would mean catastrophic damage to humanity and the environment, including deadly storms, heat waves, and drought.to put up $100 billion a year by 2020 for poorer nations to build out clean-energy and other infrastructure that reduces emissions and is more resilient to the impacts of the climate crisis.

These enormous funding needs can't be met with public finance alone, Kerry said, adding that's why voluntary carbon markets should play a role. He said the Energy Transition Accelerator didn't absolve any nation or company from its obligations. Kerry said he hoped the plan could be developed over the next year, in time for the UN's 2023 climate summit in Dubai, United Arab Emirates.

 

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