- The collaboration aims to leverage the strengths of each initiative to mobilise finance to support energy transition.
- The partnership would enable direct rewards for developing countries with verified emissions reductions from a pool of payments committed by public and private sector contributors.
The United States Department of State, the Bezos Earth Fund, and The Rockefeller Foundation have announced a collaboration between the Energy Transition Accelerator (ETA) and the World Bank to mobilise finance to support energy transition in developing countries.
ETA, a partnership of the State Department and the two philanthropies aims to catalyse private capital, supporting the transition from fossil fuels to clean power through innovative jurisdictional-scale carbon crediting. The World Bank and its new SCALE (Scaling Climate Action by Lowering Emissions) initiative support developing countries in developing power sector policies and carbon market infrastructure needed to generate real emissions reductions in a participatory and inclusive way.
The strategic collaboration between ETA and SCALE, announced at a Climate Week event hosted by The Rockefeller Foundation, aims to leverage the strengths of each initiative to mobilise finance for effective energy transitions. It would enable direct rewards for developing countries with verified emissions reductions from a pool of payments committed by public and private sector contributors.
In complementing one another, the ETA would provide an innovative crediting methodology and a coalition of private sector participants. On the other hand, SCALE would provide an avenue for sovereign government buyers and support for in-country capacity to deliver a supply of high-quality verified emissions reductions. The United States, the first contributor to SCALE, would work with the World Bank to enlist other contributors.
The US Special Presidential Envoy for Climate, John Kerry, said, “Getting to net zero is possible only if we quickly ramp up investment to help fast-growing economies meet their power needs with clean energy. The Energy Transition Accelerator and the World Bank’s SCALE initiative each bring vital tools to this effort. Working together, we can more effectively leverage both public and private finance to accelerate a just transition from dirty to clean power, drive emissions down faster, and help keep a 1.5 C limit on warming within reach.”