Government leaders and climate scientists from around the world are in Egypt for Cop27, the UN’s Climate Implementation Summit. John Kerry is the U.S. climate envoy to the summit.
The Washington Post reported on Wednesday, Kerry is expected to propose a plan he hopes will help developing nations stop using fossil fuels. Under Kerry’s plan, businesses and governments from wealthier nations would give money to developing countries by expanding the use of carbon credits.
A carbon credit is like a permit representing one ton of carbon dioxide removed from the atmosphere. Traditionally, carbon credits go to renewable energy projects, where the developer can sell the credit to larger companies that are still polluting.
The market for carbon credits is unregulated, and participation is voluntary. Kerry thinks expanding it, however, is still the best option to help third-world countries decrease dependency on fossil fuels.
Right now, carbon credits are awarded on a per-project basis. Mr. Kerry wants to change credit allocation to a more regional basis, which he expects will encourage more wide-scale renewable energy development.
The U.S. and China are the world’s biggest greenhouse gas emitters. The countries are facing mounting global pressure to assist third-world countries transition away from fossil fuels. President Joe Biden is expected to go to Cop27 later this week. It seems unlikely, though, Chinese President Xi Jinping will go to the climate conference.
