Kerry’s announcement came a day after the Africa carbon markets initiative was launched by a consortium of African countries (Kenya, Malawi, Gabon, Nigeria and Togo) and carbon credit buyers and financiers. “Private sector finance should be separate from the country’s obligations under the. “What we need is robust rules around emissions cuts and a comprehensive climate finance system that forces rich countries to deliver what they’ve promised, not try to find finance down the back of the sofa at the backwaters of the private sector,” Adow said. “Carbon markets have historically failed to fulfil climate goals and often profoundly harm communities and undermine human rights.” It is a view shared by Mohamed Adow, director of the thinktank Powershift Africa, who said it was shameful that the US continued to try to evade paying its fair share towards climate mitigation, adaptation, and loss and damage. “It’s exhausting to hear this talking point over and over again when the US still owes money to the Green Climate Fund for a 2014-era pledge,” said Stone. Kelly Stone, senior policy analyst at ActionAid, said the US has “already repeatedly failed” to meet its obligations on climate finance.

And it will distract from the real and urgent need for the US to deliver on its climate debt through public finance.” Jackson added: “This program will exacerbate the very problem it claims it will help solve by failing to actually reduce emissions. The schemes often involve forests and agricultural land where Indigenous and pastoral communities have lived sustainably, and there have been widespread reports of land grabs and higher food prices linked to carbon markets in countries such as Brazil, India and Kenya. The most common criticism of carbon offsetting is that it is little more than a “bookkeeping scam” – a false solution that allows polluters to keep polluting instead of reducing greenhouse gas emissions, which scientists agree is the only way to curtail global heating. The US has always been one of the main proponents of carbon markets, and succeeded in getting the controversial and unproven industry into the centre of the Paris agreement – a move critics say significantly weakened the accord. And somehow the US thinks it’s appropriate to zoom in with something that couldn’t be farther from climate finance or real action. Here on the ground at Cop27 people are talking about urgency and lives on the line. “What planet does this government live on?” said Rachel Rose Jackson, director of climate research and policy at Corporate Accountability. “However, a voluntary carbon credit program won’t guarantee deep, real cuts in emissions it’s tantamount to rearranging the deck chairs as the climate ship is going down.”Īfrican activists demand climate finance and compensation payments from rich countries to poor countries disproportionately affected by climate change and fossil fuel exploitation at the Cop27 climate conference on Wednesday in Egypt.

“The private sector can and must play an important role in tackling the climate crisis,” said Rachel Cleetus, policy director at the Union of Concerned Scientists. Some environmental groups were not convinced, however. Kerry acknowledged that “mistakes of the past” had damaged the reputation of carbon markets, but vowed that strong safeguards would ensure only “high-quality” credits would be used. ”Ĭarbon markets have proved controversial, however, with critics pointing out they often lead to minimal emissions reductions while burnishing the green reputations of large companies. If we don’t come up with creative ways to mobilise money, we are going to blow through 1.5C. “I’ve been doing this since 1988 and I don’t know about you but I’m tired about talking about the same stuff – we have to break the mould. “We have to win the battle against the climate crisis, not give in to business as usual,” Kerry said. This market, which will not be open to fossil fuel companies, is designed to bolster investment in renewables and help slash emissions.Īnnual investment in clean energy needs to triple to more than $4tn (£3.5tn) by 2030, according to the International Energy Agency, to avoid dangerous global heating, but Kerry said leaders of developing countries struggle to raise enough money, requiring new ways to grow private investment.

Nigeria and Chile are already interested in the plan, Kerry said, which could be operational from next year and will involve the buying and selling of credits that represent carbon pollution.

Voluntary carbon credits