FT: USA Proposes Plan to Fund Efforts to Reduce Fossil Fuels in Developing Countries

The United States of America (USA) is working on a plan to raise money from the world's largest companies to help developing countries reduce their use of fossil fuels, an idea Washington aims to present at the Sharm El-Sheikh Climate Summit this week, the British Financial Times newspaper said.

The newspaper pointed out that US climate envoy John Kerry is trying to garner support from governments, other companies, and climate experts to develop a new framework for selling carbon credits to companies, and the proceeds could later fund clean energy projects.

Under potential transformation plans, regional governments or government agencies could earn carbon credits by cutting emissions for the energy sector as fossil fuel infrastructure such as coal-fired plants is reduced, and renewable energy is increased.

The balances may be approved by an independent accrediting body, which has not yet been determined. The companies will then be able to buy the credits to offset their carbon emissions.