ImpactAlpha, Nov. 10 – Climate envoy John Kerry and the two foundations laid out plans for an Energy Transition Accelerator to generate funding for emerging markets to transition to clean energy.
With public money tight, the ETA would focus on creating new revenue streams for state and national governments that produce verifiable emissions reductions by decommissioning coal plants or building clean energy projects. They could then sell carbon credits to corporations, including through advanced purchase agreements that can hep attract additional capital.
The funds would supplement promised aid from wealthy nations, which has lagged.
The consultancy Climate Advisors estimates that the ETA could mobilize up to $139 billion in funds through 2030 and mitigate the equivalent of India’s annual emissions under an optimistic scenario.
The three partners will seek input from a wide range of stakeholders as they work out details of the ETA, including guardrails to ensure integrity. They aim to launch the program at next year’s COP in Dubai.
Nigeria and Chile, along with companies including Microsoft and PepsiCo, joined the announcement at COP27’s “finance day.”
The ETA could “unlock the true potential of carbon markets to scale resources needed for clean energy transitions,” said The Rockefeller Foundation’s Raj Shah, who in August announced the foundation would place climate at the center of its work.
“The world must come together in new ways.”