Responding to the announcement of the Energy Transition Accelerator by the US Department of State, the Rockefeller Foundation and the Bezos Earth Fund today at COP28, Abby Maxman, president and CEO of Oxfam America, said:
โWhile motivated by the right intentions, this initiative risks not only allowing companies to purchase carbon offsets instead of taking sufficient action to reduce their emissions, but also giving it the U.S. government's seal of approval. .
โWe are also particularly concerned that the Energy Transition Accelerator will allow the use of a watered-down standard that allows companies to purchase offsets for half the emissions for which they are indirectly responsible. โInstead, companies should take swift action to phase out all of these emissions.โ
โGiven the urgency of the climate crisis, it is essential to focus attention on the need for climate-friendly international public financing for the energy transition. The carbon offset market is worth just $2 billion globally and faces increased skepticism over whether it actually leads to emissions reductions. There are also concerns about the social harms offsets cause and whether companies can credibly rely on them.
โEven the boldest projections for the carbon offset market still fall far short of the $1.64 trillion needed each year for a just energy transition in low- and middle-income countries. At least half of the amount will need to come from public funding, with the vast majority provided through grants and concessional financing from countries in the Global North.โ
โRecent investigations into offset programs around the world reveal real risks of land grabs, lack of robust community consultation, and lack of assurance that project benefits are shared with frontline communities. The Energy Transition Accelerator must ensure that it applies the highest social and environmental safeguards, reflecting international human rights and environmental law, in the scope, development and implementation of carbon projects.โ
/ENDS
Notes to editors:
- The US Department of State, the Rockefeller Foundation and the Bezos Earth Fund unveiled the core framework for the Energy Transition Accelerator, which aims to help participating low- and middle-income countries accelerate their energy transition. electricity sector from fossil fuels to clean energy attracting investments. from companies that in return would receive carbon credits for the emissions avoided.
- The ETA allows the use of diluted water Voluntary carbon markets initiative Scope 3 Flexibility Claim, which allows companies to purchase offsets for 50% of Scope 3 emissions: emissions for which a company is indirectly responsible, such as those from products it buys from suppliers and from its products when their clients use them. This potentially undermines progress toward the higher bar promoted by the Science-Based Targets Initiative's Net Zero Standard.
- Bold projections on the offsets market estimate that it could grow between 10,000 and 50,000 million dollars by 2030. This figure is still well below the 1.64 trillion dollars each year needed until 2030 for a fair energy transition in low-income countries and media.
