· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: The U.S., in partnership with the Rockefeller Foundation and the Bezos Earth Fund, presented the Energy Transition Accelerator (ETA) at COP28
• This initiative, supported by John Kerry, aims to create a large-scale market for emissions trading, focusing on decarbonizing electricity systems in Indonesia, Vietnam, and South Africa
🔭 The context: Carbon markets, which allow trading of emissions credits, come in two forms: compliance markets, like the EU's Emissions Trading System, and voluntary markets
• The ETA seeks to develop a high-quality carbon market, differing from previous schemes that faced challenges such as greenwashing and setting overly generous baselines
🌍 Why it matters for the planet: The ETA targets the decarbonization of coal-dependent countries, aiming to significantly reduce their emissions
• This initiative is crucial in the global effort to transition to clean energy, especially in developing countries, and is part of a broader movement to address climate change through financial mechanisms
⏭️ What's next: The ETA aims to mobilize significant funds for decarbonization, with projections of selling carbon credits worth $41 billion by 2035
• However, this ambitious plan faces challenges, including the need for robust pricing of carbon credits and securing financial commitments from potential buyers and investors
💬 One quote: "This really came about because of reality... We succeeded in ginning up ambition significantly in Glasgow, building on what we did in Paris... and now we need to meet the reality that this is the year of a stock take in which everybody’s going to be looked at pretty carefully..." (John Kerry, Special Presidential Envoy for Climate, US Department of State)
📈 One stat: The ETA could sell carbon credits worth $41 billion tied to projects in Indonesia, Vietnam, and South Africa by 2035
Click for more news covering the latest on carbon
