COP28 ‘coal to clean’ carbon credit scheme gets Verra approval

The Rockefeller Foundation-driven ‘Coal to Clean Credit Initiative’ (CCCI) announced at COP28 has had its methodology approved by carbon credit standard Verra, kicking off the next stage of its implementation.

Verra, a certification body that issues Verified Carbon Units (VCUs) that can be purchased on the voluntary carbon market, officially approved the CCCI’s methodology this week, meaning carbon credits generated from the early closure of coal plants could soon become available.

The CCCI initiative aims to support the energy transition by allowing coal plants closing down before the end of their productive life to receive financial incentives in the form of carbon credits.

The methodology now approved by Verra quantifies the climate benefits of early coal retirement by comparing actual emissions to what a plant would have emitted over its expected lifetime. To ensure emission reductions, projects must also pair the retired coal capacity with new and additional renewable energy.

"To meet global climate goals, we need to do more than slow emissions—we need to rethink the very systems that produce them. Our new methodology empowers energy providers to make that shift in a way that doesn’t leave workers or communities behind and doesn't inadvertently exacerbate energy poverty,” said Mandy Rambharos, Verra CEO.

Focus on Philippines coal plant

When the initiative was launched by the Rockefeller Foundation and the Monetary Authority of Singapore at COP28, the organisations also announced a pilot project focused on the early phase-out of a Philippines coal plant owned by the South Luzon Thermal Energy Corporation. 

Now that the carbon credit methodology has been approved the foundation’s partner ACEN Corporation has announced a new collaboration with GenZero, Keppel, and Mitsubishi Corporation and its subsidiary, Diamond Generating Asia, Limited, to advance the pilot in the Philippines. This will involve leveraging carbon finance to replace the 246 MW coal plant with 1,000 megawatt (MW) of solar, 250 MW of wind, and 1,000 MW of battery energy storage by 2030, while supporting the livelihoods of workers affected by the plant’s early transition. 

Ashvin Dayal, Senior Vice President, Power and Climate at The Rockefeller Foundation, said: “Energy access and abundance define people’s, community’s, and country’s futures. With electricity demand increasing around the world, the Foundation has been looking for ways to work with communities and countries as they make the best energy choices for their people. As more and more countries and communities choose to transition to clean energy sources, philanthropy has a unique role to play — we can take risks where others cannot and catalyse momentum needed. The projects announced this week will do just that, offering real benefits for people living and working in these communities.”

The foundation estimates that helping 60 coal plants close down before the end of their productive lives and replacing them with clean energy plants could unlock US$110 billion in public and private investment, prevent 9,900 early deaths annually, and generate 29,000 permanent jobs.