The U.S. has recently unveiled a new carbon offset scheme called Energy Transition Accelerator (ETA) for climate finance.
- It will be developed by the U.S. along with the Bezos Earth Fund and the Rockefeller Foundation and receive inputs from public and private sectors.
- It is a new carbon offset plan that will allow companies to fund clean energy projects in developing countries and gain carbon credits that they can then use to meet their own climate goals, at least partly.
- According to U.S., the concept is to put the carbon market to work, deploy capital otherwise undeployable, and speed up the transition from dirty to clean power, for two purposes — to retire unabated coal fired power and accelerate renewables.
- The ETA is expected to deliver deeper and earlier emissions reductions, help developing countries achieve and strengthen their nationally determined contributions (NDCs) under the Paris Agreement, and help them advance broader sustainable development goals, including expanded energy access.
- The ETA is expected to operate through 2030, possibly extending to 2035.