U.S. climate ambassador Kerry discusses carbon offset initiative for developing countries

ABU DHABI, Reuters – U.S. climate envoy John Kerry outlined on Sunday core principles for a “high integrity” carbon offset plan. This plan is meant to aid developing countries in their energy transition and the next steps include establishing a consultative body.

The United States and the Rockefeller Foundation are working together to create the Energy Transition Accelerator, (ETA) which was announced last year at the COP27 Climate Conference. It is designed to mobilize private capital.

Kerry explained to the Atlantic Council Global Energy Forum Abu Dhabi that Kerry’s goal was to reach bankable agreements to accelerate emission reduction. Kerry also stressed that the ETA was not a replacement for other funding sources and was limited in time.

“We believe that you can have high integrity, accountable, and transparent credit which will enable us to put some money down the table,” he stated, acknowledging widespread criticisms of voluntary carbon offsets.

These schemes, where companies receive emissions credits in exchange for cash flowing to poor countries who reduce their carbon output, are often fraught with fraud and double counting.

Kerry stated that there are two reasons that someone can buy credit. One, it’s to close down or transition an existing fossil fuel facility that provides power. Two, it’s to deploy renewables that will replace the current dirty sourcing.

He stated that the ETA principles required a near-term inclusive and comprehensive approach in order to achieve broader sustainable development goals as well as support for power sector-wide energy transformation.

On Sunday, the Rockefeller Foundation published a joint statement along with a preliminary list containing members of the ETA High-Level Consultative Group. Kerry stated that this group would offer broad input and add additional participants.

(Reporting by Rachna uppal and Ghaida Ghantous. Editing by Susan Fenton.