The Run-Down: A new carbon credit plan has been introduced, with the goal of reducing developing countries’ dependence on fossil fuels
- John Kerry announced the new program, called Energy Transition Accelerator, at the United Nations Climate Talks
- The program plans to lean on investors to reduce emissions output by funding developing nations’ closures of fossil-fuel energy sources to accelerate the development of renewable energy.
Why You Should Care:
This announcement is stirring up quite a controversy. Investors are weary, citing the fact that the carbon-credit market, worth $2 billion, is currently unregulated. This worries critics who question the quality of projects and the success of such outcomes. Other firms have called for more direct action, believing carbon credits are not a strong enough move to fight what has become a major issue.
Proponents, however, call this a major win, pointing to the fact that credits are given out based on a country’s proposed projects. Both naysayers and optimists have one thing in common though – worries of past abuse issues worming their way in again. Kerry assures, however, the right safeguards are in place this time around to combat any misuse that might threaten the integrity of the program.
So what does this mean? As countries across the world advance their work in climate protection, we are seeing major changes everywhere. A credit program like this might seem like it’s on such a high level, but really, its effects will trickle down.
At a moment in U.S. history where we may be on the precipice of a new wave recession, brought on by the pandemic that we are still fighting, any measures introduced by the U.S. that will cost our government even more money should always be taken with a grain of salt.
Knowing which investors will back such programs will be critical. Understanding how much effort and energy is put into this program can give you a better understanding of our current economic state.
This is also exciting! Now more than ever we need to get ahead of the pending climate crisis – programs like this are a reassuring reminder that we are taking steps to gain ground on this issue.