Myth

Funding renewable energy projects is a good way to compensate for fossil fuel emissions

Fact

Expansion of renewable energy in growing economies is crucial, but often only adds to, rather than replaces the fossil fuels in the energy mix. Because renewable energy is now often cheaper than fossil energy, these investments would likely have happened anyway, and should therefore not be counted as offsets. Actors in high-income countries should rather finance renewable energy expansion as a form of climate investment (as opposed to offsetting).

Topic

Net Zero

Label

Problematic.