US Carbon Credits Scheme Frowned Upon at COP27 Climate Summit

The Biden government has yet to do much to help poor nations deal with climate change, and now it hopes big business will pay. The Biden government has yet to convince Congress or the public to spend more on climate aid through carbon credits.

Now they’re trying to make it easier for private corporations to send money to the developing world in exchange for looking green at home.

John Kerry announced the plan at the Wednesday COP27 climate summit in Egypt. It involves tapping private funds to finance developing nations’ transition to clean energy by selling “high quality” carbon credits to companies trying to make their carbon emissions “net zero.”

Kerry said at a launch event, “We want to put the carbon market to work, deploy otherwise idle capital, and speed the transition from dirty to clean power.”

Environmental groups and climate experts opposed the idea, saying it would encourage polluters to continue. It came a day after the U.N. warned businesses about shady carbon credits.

Activists heckled Kerry as he announced the plan, accusing him of “promoting false solutions” before security guards removed him. Poorer nations criticized wealthier nations at this year’s COP summit for not funding their “green transition.”

The developed world needs hundreds of billions of dollars to ditch coal, oil, and gas, but Congress is reluctant to help.

Kerry said that without more money, climate change could not be stopped.

Kerry’s Energy Transition Accelerator proposal is backed by the Rockefeller Foundation and the Bezos Earth Fund. They hope it will unlock $100 billion for green projects by 2030. Kerry wants it operational by next year’s COP.

Under the plan, verified greenhouse gas emission reductions could be sold as carbon credits. Kerry said PepsiCo and Microsoft are interested in buying them.

Kerry said the credits would have “strong safeguards” Buyers, “not including fossil fuel companies,” need a net-zero CO2 emissions goal and a science-based interim target.

The credits can’t replace deep cuts to their emissions, and they only boost them.

Kerry said that these carbon credits would only be allowed to phase out coal power plants in developing nations and create more renewable power. He called that “abuse-proofing.”

Companies, governments, and individuals who want to reduce their carbon footprint buy carbon credits. Environmental and climate activists say they’re problematic because they can’t guarantee reducing emissions.

Emissions from polluting human activities can be offset by farming practices that store carbon, planting trees, or capturing climate-changing gases from smokestacks and other equipment.

These activities are monetized and sold as offsets in net-zero plans.

A U.N. expert panel warned on Tuesday that tougher standards are needed to fight greenwash by companies and investors making net-zero pledges, including a ban on businesses and local governments buying cheap carbon credits instead of cutting their emissions.

Wednesday’s proposal drew skepticism.

Mohamed Adow, director of a climate and energy think tank, called carbon offsets an “accounting trick” that allows big polluters to continue polluting.

Big cuts in greenhouse gas emissions in both wealthy Northern nations and developing countries in the global South are needed, Adow said, “not rich polluting companies in the north paying to destroy the planet.”

“John Kerry knows the science on climate and what’s at stake for people, but his offsets threaten global efforts to cut emissions,” Adow said.

Climate scientist Bill Hare of Climate Analytics said the proposal shocked the climate summit and many governments.

“Because everyone must reduce emissions at this point in history.” John Kerry’s proposal means companies don’t have to reduce emissions if they buy offsets.

A senior European official questioned the U.S. launch proposal.

The official spoke anonymously due to the sensitivity of the topic.

Micah Carpenter-Lott, the heckler, wanted to call attention to big polluters, wealthy nations’ inaction, and Kerry’s “false solutions.”

“We don’t need to partner with polluters,” Carpenter-Lott said after being kicked out of the U.S. pavilion. “Polluters shouldn’t be here and shouldn’t be allowed to partner with governments because that won’t solve the climate crisis.”