A group of major philanthropies and companies joined with the White House on Wednesday to float a new carbon trading proposal that would funnel money from private businesses to developing countries in assisting the shift from fossil fuels to clean energy.
Seeking to tap private money for a transition that wealthy governments have refused to finance, the group hopes to lure more than $100 billion by the end of the decade, cutting as much as 1.3 billion to 2.3 billion tons of climate pollution, according to the consulting firm Climate Advisers.
“The only way to prevent climate catastrophe is to come together in new ways and behind new innovations, like carbon markets,” said Raj Shah, president of the Rockefeller Foundation. Starting in December, Bezos Earth Fund and the Rockefeller Foundation will provide initial resources to support further negotiations.The coalition is talking about a scale of emissions reductions that many climate scientists would find impressive.
Though $100 billion is a large sum, many developing countries in Sharm el-Sheikh have demanded that wealthy industrial nationsto cover environmental losses and damage in lower-income nations. The United States has pushed back. “This is a plan to create a process to see how this can work, how voluntary markets might help reduce fossil fuels and develop renewables,” said Kelley Kizzier, director of corporate action and markets at the Bezos Earth Fund. Kizzier said she was first contacted about six months ago.
Environmental groups are skeptical about corporations playing such a large role in financing the energy transitions.
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