· 4 min read
Against the backdrop of Trump’s re-election, COP29’s compromises, and Spain’s latest climate catastrophe, Alexia Kelly, Director of the High Tide Foundation, offers a clear, pragmatic vision. Focusing on carbon markets and energy systems in transition, Kelly highlighted that local action is foundational, rooted in the understanding that we are working for a global cause.
The power of local governance
At COP29, U.S. climate envoy John Podesta reaffirmed America’s commitment to its climate goals. Alexia Kelly struck a similar note: local governance, she argued, will hold firm despite the shifting winds of federal and global politics. Even if Trump discards the Inflation Reduction Act (IRA), the momentum it has gained won’t be easily reversed. “The energy transition,” she said, “is cost-competitive and largely market-driven now.”
States like Texas and Iowa, despite political differences, continue to expand renewable projects under their own mandates. She highlighted that the IRA’s tax incentives, especially for clean energy infrastructure, have catalysed widespread investment, embedding renewables deeper into the economic fabric of both red and blue states.
At the same time in California, legislation – SB 253 and SB 261 – pushes corporate transparency on greenhouse gas emissions and climate risk. “As goes California, so goes the nation,” Kelly remarked, emphasising how state-level initiatives often set the precedent for federal policy in the U.S.. These laws face legal challenges but continue to move forward. They show what’s possible, but scaling them requires collective action.
Thirst for power in a drowning world
Globally and locally, both public and private sectors are scrambling for reliable energy. Tech giants demand more clean power for AI, while governments seek to phase out fossil fuels and stabilise the grid.
While U.S. state-level initiatives provide a blueprint for resilience, the global energy transition demands diverse solutions. As reflected on the COP29 agenda, nations are considering nuclear power as a critical solution for cutting emissions and ensuring energy security. Kelly acknowledged its necessity.
With renewable energy infrastructure still scaling up, nuclear is a reliable source of firm power to complement wind and solar. “Nuclear energy will play an increasingly important role as we transition to GHG free baseload power sources,” she said. However, even with innovations like small modular reactors (SMRs), the issues of high up-front costs and nuclear waste persist – trade-offs the planet might need, but ones that communities may resist.
Nature knows no boundaries
As high-tech innovations reshape energy grids in the North, solutions in the Global South are an equal part of global decarbonization. We discussed how power moves from global frameworks to local communities, where Kelly argued for a more equitable approach. She pointed to the Integrity Council for Voluntary Carbon Markets (ICVCM), which has established the toughest social safeguards yet for the carbon market. These build on the UN’s Cancun Agreements and the existing best practice developed by carbon crediting standards guidelines, setting a high bar for protecting communities and promoting equitable benefit-sharing transparency.
She advocated financial structures that prioritise community-led projects, noting that while capital remains scarce, it must be deployed responsibly to avoid repeating the extractive mistakes of the past. “Part of our collective work over the coming years is to really decide what best practice looks like,” she said, “to make sure that the market is delivering much needed finance to frontline communities in the Global south.” But local governance and management is where the real battle lies. Without strong governance safeguards, Kelly warned, communities risk exploitation. “Often, these projects bring money to places that have never seen such wealth. If protections aren’t in place, local politicians, strongmen, or cartels step in.” When done right, however, the results are remarkable. Instead of logging forests or mining, communities earn by preserving their local environment. “It’s a rare chance to transfer wealth while safeguarding nature,” Kelly said. The focus now is on refining best practices and ensuring that those on the ground take the lead.
Bold visions
When asked about her “utopian” future for carbon markets, Alexia outlined a bold vision: a globally binding treaty that caps emissions and sets a clear price on carbon for all major emitting sectors. “Carbon pricing is the most straightforward and effective tool we have,” she argued, citing success stories from the EU Emissions Trading System (ETS) and California’s cap-and-trade program.
For Alexia, the power of carbon markets lies in their ability to transform behaviours. She recounted a story from Papua New Guinea, where a community shifted from logging to carbon credits, preserving their forest while generating income. “Markets can drive profound change,” she concluded, “but they need to be intentionally designed with environmental impact, equity and ambition at their core.” Amidst political turbulence and environmental crises, Kelly’s hope lies in humanity’s capacity for resilience and innovation – hope in a common ground.
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