The Rockefeller Foundation has launched a pioneering initiative that aims to accelerate the shift from coal-fired power generation to clean energy in developing countries. The Foundation’s Coal to Clean Credit Initiative (CCCI) is an innovative plan.

CCCI uses carbon credits to help retire old coal plants. Then, it replaces them with renewable energy sources. This work helps cut greenhouse gas emissions while supporting economic growth and boosting public health in vulnerable communities.

Introducing the Coal to Clean Credit Initiative (CCCI)

The CCCI aims to give financial rewards. This helps coal-fired power plant owners close their plants sooner than expected. It also encourages a shift to renewable energy.

The centerpiece of the initiative is a new type of carbon credit called “transition credits.” Credits are created when a coal plant shuts down early. It is replaced by clean energy sources like solar, wind, and energy storage systems. CCCI matters because:

These transition credits can be sold to companies or organizations. They help offset emissions, just like traditional carbon credits. The money from selling these credits can help replace coal plants with clean energy. It can also support workers and communities impacted by the closures.

Dr. Joseph Curtin, Managing Director for Power and Climate at The Rockefeller Foundation, remarked:

“Today’s progress update demonstrates that we are closer than ever to unlocking new benefits to people with credits that will help communities transition to clean, affordable energy. We are now focused on scaling this initiative and bringing dozens of such transactions to the market by 2030.”

Verra, a global nonprofit that certifies carbon credits, has approved the method for creating transition credits. This is a key development in the initiative. This official approval is an important step as it gives clear rules and protections.

The approved rules help ensure that the credits are high quality and provide real environmental and social benefits. The approved method aims to create jobs, improve energy access, and protect workers’ rights and local communities.

According to Mandy Rambharos, CEO of Verra,

“We need to rethink the very systems that are hurting people and the planet. 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.”

Pilot Project: Transitioning the SLTEC Plant in the Philippines

The first real test of the CCCI is in the Philippines. ACEN Corporation, part of the Ayala Group, is retiring its 246 MW South Luzon Thermal Energy Corporation (SLTEC) coal plant. Originally slated to close in 2040, ACEN plans to retire the plant by 2030 using the CCCI framework.

• To fully replace SLTEC’s power output, ACEN aims to build 1,000 megawatts (MW) of solar, 250 MW of wind, and 1,000 MW of battery storage.

These clean energy sources will offer reliable and affordable electricity. They will also help reduce harmful air pollution in the region.

This transition is especially important in Batangas, where the SLTEC plant is located. The area’s population density is 31% higher than the national average, and unemployment levels are among the highest in the country.

Closing the plant and switching to renewable energy should create new permanent jobs. It will also improve local air quality. This change may reduce health problems linked to pollution. Over 726,000 people live within 20 kilometers of the plant, making the project’s public health impact significant.

ACEN is teaming up with several organizations to support this transition. Partners include GenZero, Keppel, and Mitsubishi Corporation via its subsidiary, Diamond Generating Asia. These partners will work together to ensure the project delivers both environmental and social benefits.

Scaling Up: Targeting 60 Coal Plant Transitions by 2030

The Rockefeller Foundation will expand the CCCI, building on its pilot project in the Philippines. They aim to support 60 coal plant transitions by 2030. This effort will focus on emerging markets, especially in the Asia-Pacific region.

The Foundation believes this could lead to $110 billion in investments. It may also create 29,000 permanent jobs, prevent 9,900 premature deaths each year, and cut down 640,000 lost workdays annually thanks to improved air quality.

The initiative could create about $21 billion in economic benefits. It could also help consumers in emerging economies save up to $8.3 billion each year on power costs. These figures come from early estimates by Catalyst Advisors.

Renewable energy technologies, like solar and wind, are now cheaper than coal in many markets. This is possible when they are paired with energy storage, says the International Energy Agency (IEA).

To ensure the integrity and effectiveness of the transition credits, the Rockefeller Foundation has awarded a $600,000 grant to the Integrity Council for the Voluntary Carbon Market (ICVCM Limited). This funding will help set high standards for transition credits. It will also make sure that Indigenous Peoples and local communities are included in designing and implementing future projects.

Addressing Coal Dependence in Emerging Economies

Coal-fired power remains a significant challenge for global climate efforts. Its carbon emissions rose by 0.9% (135 Mt CO₂) in 2024.

The IEA reports that coal made up about 36% of global electricity in 2023. Many emerging economies still depend on coal to meet rising energy needs. This is happening even with global pressure to reduce coal use.

Programs like the Rockefeller Foundation’s CCCI help connect climate goals with economic needs in developing countries. The initiative offers a clear plan to close coal plants early. It replaces them with clean energy sources, which reduces greenhouse gas emissions. At the same time, it protects jobs and supports communities. It also ensures reliable access to electricity.

A 2023 BloombergNEF report says emerging markets need more than $2.6 trillion for clean energy by 2050. This investment is crucial to meet global climate goals, especially net zero. Using innovative methods like transition credits can help unlock capital. This approach could be crucial for speeding up decarbonization.

The CCCI works alongside other global initiatives. One example is the Just Energy Transition Partnerships (JETP). These agreements offer financial and technical help to countries like Indonesia, South Africa, and Vietnam. They support these coal-heavy nations as they shift to clean energy.

A Model for the Future

The Rockefeller Foundation’s initiative highlights how philanthropy, private companies, governments, and financial markets can collaborate. They aim to address a tough challenge in the global energy transition: retiring coal plants early.

The CCCI combines verified transition credits, strong social protections, and clear economic benefits. This makes it a model for coal-dependent regions around the world to follow.

As more countries seek to decarbonize and meet their climate commitments, initiatives like this will likely play a growing role in shaping a cleaner, healthier, and more sustainable future.

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