ACEN Corp. and the Rockefeller Foundation announced yesterday the Coal to Clean Credit Initiative (CCCI) pilot project under consideration in the Philippines that could lead to the avoidance up to 19 million tons of carbon dioxide emissions.
The project explored the climate impact of leveraging carbon finance to close the 246 megawatts (MW) South Luzon Thermal Energy Corp. (SLTEC) coal plant in 2030 which is 10 years ahead of its scheduled retirement to replace it with clean power and battery storage while also ensuring support for the livelihoods of workers affected by the plant’s early transition.
SLTEC’s eligibility for carbon financing was assessed and found the project to meet the eligibility criteria of the draft methodology but noted that decommissioning by 2030 would not be possible without carbon finance.
“We are delighted to accomplish this important milestone of confirming the project’s eligibility under CCCI’s draft methodology. This paves the way to fully develop the just transition plan and engage with potential buyers of carbon credits. We will continue to build on this momentum and hopefully deliver a successful pilot project,” said Eric Francia ACEN president and chief executive officer, in a statement.
CCCI is designing and testing a methodology which leverages carbon credit finance to accelerate a managed and equitable phase-out of coal plants in emerging economies and to incentivize their replacement with clean power, while supporting the lives and livelihoods of affected workers.
ACEN hopes to finalize buyer discussions and reach a financial close for this world’s first coal-to-clean carbon credit transaction by next year.
CCCI and ACEN are working with the Monetary Authority of Singapore (MAS) to advance the project.
This is the first update on the partnership between ACEN, CCCI and MAS since the 28th United Nations Climate Change Conference last November, when the intention to collaborate on a transition credits pilot was announced.
