Connect with us

Published

on

Carbon registry Verra has launched a new rulebook for generating carbon credits from the early phase-out of coal power plants that are replaced with cleaner energy sources.

Carbon credit projects using the methodology will aim to monetise emissions avoided through the retirements of plants ahead of schedule. The sale of offsets will help compensate coal plant owners for the money they miss out on by not keeping the plants running and selling the electricity and offer a new financial incentive for operators, according to the backers of the scheme.

While no such carbon-offset funded closures currently exist, the US-based philanthropy Rockefeller Foundation – which led the development of the rulebook – hopes to sign up 60 coal power plants to the scheme by 2030.

Joseph Curtin, managing director for power and climate at The Rockefeller Foundation, said that “we are closer than ever to unlocking new benefits to people with credits that will help communities transition to clean, affordable energy”.

Solar squeeze: US tariffs threaten panel production and jobs in Thailand

But some climate experts have raised doubts over the suitability of tapping into carbon markets to fund the transition from coal and over the integrity of the carbon credits generated.

The methodology does not require project developers to replace all the coal power generating capacity retired and gives them the option of switching to biomass, which has been criticised for its potential negative climate and environmental impact.

Will O’Sullivan, policy advisor at E3G, said that offsets may play a role in finding the money to phase out coal power globally by 2040 but they’re unlikely to be “a silver bullet for an issue that’s fundamentally political”.

“Credits also rest on accurately predicting future emissions, a question this methodology does not fully address,” he added.

‘Just transition’ plans

The scheme’s supporters say the projects will put in place clear safeguards for people affected by the switch away from coal power.

Mandy Rambharos used to work for South African electricity company Eskom, leading its work transitioning away from coal power. Now Verra’s CEO, she said the 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”.

Project developers will have to submit a plan for a ‘just transition’ detailing, for example, how coal workers will be offered compensation, training or new job opportunities.

Comment: Without debt relief, climate action will fail

But money for these activities will not come from the carbon market. Project developers will instead need to find other funders – including governments, philanthropies or private or public banks – willing to provide grants or loans equal to at least 2% of the revenue expected from the sale of carbon credits issued by the project.

A spokesperson for Verra said this approach ensures that funding is in place “when it is needed” in the planning and implementation stages and is not subject to changing market values for the carbon credits.

Faltering coal phaseout

Coal remains the leading source of electricity generation and the biggest single contributor to carbon dioxide (CO2) emissions globally with most coal-fired power plants in China.

But no electricity should be produced from unabated coal power plants by 2040 if the world is to meet the Paris Agreement goal of limiting global warming to under 1.5C, according to the International Energy Agency (IEA).

Starting from 2021, some coal-reliant nations – Indonesia, Vietnam and South Africa – have been involved in multi-billion-dollar Just Energy Transition Partnerships (JETPs) with rich nations in an attempt to accelerate their shift towards cleaner energy sources.

But the programmes have faced multiple challenges delaying their implementation. The latest setback came in March 2025 when US President Donald Trump pulled American support for the initiative.

Carbon credits have long been touted as a potential alternative source of funding for the costly coal switch-off, but the idea has never been tested.

Climate and environmental concerns

Environmental groups previously raised concerns over the use of offsetting mechanisms to finance the retirement of coal plants. They claimed that uncertainties in the calculation of the emission reductions risk generating an excessive number of credits that could ultimately undermine global climate ambition.

A New Climate Institute report last year said it is difficult to predict how long – and at what intensity – coal plants would have kept running for if they had not shut down early by carbon offset sellers.

Verra’s new methodology will apply to grid-connected coal power plants that began construction before the end of 2021 and are locked into a long-term purchase agreement for the electricity produced.

The projects need to pair the phased-out coal capacity with new renewable energy, replacing at least 40% of the generating capacity displaced. That could mean, for example, putting solar panels on the same site of the coal plant or buying renewable electricity from other operators on the market.

“To ensure the highest integrity, beneficiaries of the credits should be able to prove that renewables have directly and incontrovertibly replaced lost coal capacity, rather than being incidental to the replacement”, said E3G’s O’Sullivan.

WA Parish Generating Station, a natural gas and coal power plant, in Fort Bend County near Houston, Texas on June 25, 2023. (Photo by Reginald Mathalone/NurPhoto)

WA Parish Generating Station, a natural gas and coal power plant, in Fort Bend County near Houston, Texas on June 25, 2023. (Photo by Reginald Mathalone/NurPhoto)

The methodology offers a list of power sources including solar, wind and hydro, but also biomass power plants which produce energy by burning wood, crops or organic waste.

In certain cases, biomass plants can produce more carbon dioxide (CO2) emissions per unit of energy than coal plants because fuel like wood needs to be burned in higher volumes, according to separate research by Ember and the US-based Partnership for Policy Integrity.

Rockefeller Foundation is working with partners on a first pilot project based on the methodology that would see the closure of the South Luzon coal power plant in the Philippines ten years ahead of its planned closure, replacing it with solar and wind power combined with battery storage.

The project could avoid up to 19 million tons of carbon dioxide (CO2) emissions – similar to one year’s emissions from the whole of Ghana – according to an assessment commissioned by the Rockefeller Foundation and ACEN, the plant’s operator.

The post First carbon credit scheme for early coal plant closures unveiled appeared first on Climate Home News.

First carbon credit scheme for early coal plant closures unveiled

Continue Reading

Climate Change

Battle over cleaning up shipping set to resume at London talks

Published

on

The US is expected to resume its attempt to sink measures for a greener global shipping sector at closed-door talks between governments at the International Maritime Organization (IMO) in early September.

The US and oil-producing allies like Saudi Arabia want to weaken a proposed plan for cleaner fuels that aims to reduce planet-heating emissions from the industry, which relies heavily on dirty bunker fuels. Shipping currently represents 3% of global emissions.

Those that want a softer system are likely to back a Liberian proposal which expert analysis suggests would see emissions fall by only half at most by 2050, far short of the sector’s agreed climate goals.

After several years of debate, governments provisionally agreed in April 2025 on the “Net Zero Framework” (NZF), a series of emissions reduction targets for shipowners, backed up with financial rewards for meeting the targets and fees for missing them.

But in October 2025, after a high-profile intervention from US President Donald Trump and threats of sanctions and visa restrictions, the US convinced a majority of voting nations to postpone the adoption of the NZF for a year.

Ralph Regenvanu, climate minister for the Pacific nation of Vanuatu, called the delay “unacceptable” given the urgency of accelerating climate change.

After a round of low-profile talks in May, the first of three further sets of talks on how to clean up shipping will begin at the IMO’s riverside headquarters in London on Tuesday, culminating in a final public session in November.

Em Fenton, who follows the talks as senior director of climate diplomacy at Opportunity Green, an NGO focused on aviation and shipping, said governments should not be sidetracked by alternative proposals to the NZF, calling them “a distraction from a hard-fought multilateral compromise”.

“If countries want to deliver a just and fair maritime transition, there is really only one choice: back the NZF and stand together in solidarity against those who would tear it apart,” Fenton added.

Five proposals on the table

Governments will discuss five different proposals submitted in advance of next week’s meeting. The most ambitious of these is from the Pacific island nation of Tuvalu, which has proposed a levy on the entirety of a ship’s emissions rather than just those above a certain level, as the NZF envisions.

That had been the original demand of Pacific nations before the NZF was provisionally adopted in April 2025. At the time, Tuvalu’s transport minister Simon Kofe described the NZF as disappointing and not ambitious enough.

For this reason, six Pacific countries abstained in the vote on the NZF. While they supported the original plan for its adoption in October 2025, they have used the delay to push again for more ambition.

John Kautoke, advisor to a group of Pacific nations called 6PAC+, told Climate Home News that the NZF “cannot diminish its already inadequate ambition. If anything, the NZF must increase in ambition if we are going to renegotiate its parameters.”

    Analysis by the Institute of Marine Engineering, Science and Technology (IMarEST) suggests that, of the five proposals, only Tuvalu’s would meet the 2030 and 2040 emissions reduction targets for global shipping that were agreed by governments in 2023. Those were for cuts of 20% between 2008 and 2030, 70% by 2040 and then reaching net zero “by or around, i.e. close to 2050”.

    Despite this, the UK, Australia, Canada and South Africa have formally proposed that governments adopt the NZF, which won support in a 63-13 vote among governments at the April 2025 talks. Trump’s US walked out halfway through.

    According to IMarEst’s analysis, while the NZF proposal will not be enough to meet the industry’s targets, it will reduce emissions more cheaply than the Pacific proposal.

    A proposal by Brazil – which fought hard for the NZF last October – suggests tweaking the framework to make meeting targets easier in the short term and harder in the long term.

    While this compromise will make it more appealing to the owners of polluting ships and countries that support them, IMarEst estimates it would lead to higher cumulative emissions than either the NZF or Pacific proposals.

    The NZF stipulates that fees for high-polluting shipowners should be be put into a Net Zero Fund and used to promote clean shipping fuels and a fairer transition. The Brazilian proposal would delay raising and spending these funds by two years, from 2029 to 2031.

    Liberia’s proposal weakens emissions cuts

    The US and Saudi Arabia are likely to swing behind a new proposal from Liberia, whose government makes millions of dollars a year selling the right for shipowners to register their vessels in the small West African nation via a US-based company.

    This proposal would weaken the emissions reduction targets. IMarEst says it would cut the industry’s emissions at most by a half by 2050, falling far short of the target agreed in 2023 for international shipping to reach net zero “close to 2050”.

    It would also replace the NZF’s fees for missing targets with a carbon trading system. As a result, there would be no Net Zero Fund and therefore less money available to incentivise green fuels and make the transition more equitable for poorer nations.

    Pacific advisor Kautoke said that, as well as preventing shipping from reaching zero emissions by 2050, Liberia’s proposal would mean the Pacific “will not receive any support to deal with the disproportionately negative impacts created by the cost of the transition”.

    “We get a double blow if we adopt the Liberian proposal,” he warned. “We get all the cost of a transition without any support, and we have an industry that continues to burn fossil fuels to an unforeseen point.”

    Japanese proposal favours shipowners

    Japan has submitted a late proposal to amend the NZF so that shipowners have more control over how the fees they would pay for emitting above a set threshold are spent.

    University College London professor Tristan Smith has argued that this change means there will be no central mechanism to incentivise investments in clean fuels. He wrote on LinkedIn that under the system put forward by Japan, shipowners would be able to select which green projects their fees would go to. They could choose their own or those of a sister company or other shipowners, rather than funding broader just transition projects that would benefit marine workers or developing countries hit by rising shipping costs.

    Despite its flaws, Smith added that Japan’s proposal “could still get taken seriously by some, given how appealing it may seem to shipowners who have consistently demanded control of revenues, and given how the US and other member states have pushed back against the IMO Net Zero Fund and [greenhouse gas] pricing.”

    Tacit or explicit approval?

    Next week, governments are expected to make statements saying which proposals – or which aspects of proposals – they prefer. Another set of talks will be held from November 23-27 before a potentially final round from November 30-December 4.

    A new framework to tackle shipping emissions could be adopted at those talks if two-thirds of countries that are present and signed up to a regulation called Marpol Annex VI – endorsed by just over 100 states – vote in favour of it, as they did in April 2025.

    The US and its allies are also trying to change the rules to make the next stage more difficult. Decisions that have been adopted at IMO meetings usually take effect automatically unless a certain number of countries object within a certain time period decided by governments, a system known as tacit approval.

    But the US wants that to require explicit approval instead, so that any new emissions standard would not come into force unless enough governments – representing a certain percentage of the world’s shipping fleet – actively indicate support for it.

    Critics say this change would give a small number of countries with large shipping registries the power to block implementation. Liberia has the world’s biggest shipping registry, run by an American company, followed by Panama and the Republic of the Marshall Islands.

    Liberia and Panama have supported the US at the talks on the Net Zero Framework. The Marshall Islands has long been one of the most vocal supporters of climate action in shipping but, with its officials and shipping registry income vulnerable to US retaliation, did not sign on to the recent Pacific proposal vowing to strengthen the NZF if it is re-opened.

    Brazilian negotiator Adriana de Medeiros Gabinio warned in April that the NZF’s opponents are trying to change the rules by which it comes into force as a “safety net to block” it.

    The post Battle over cleaning up shipping set to resume at London talks appeared first on Climate Home News.

    Battle over cleaning up shipping set to resume at London talks

    Continue Reading

    Climate Change

    Coles, Woolworths failing on deforestation commitments 

    Published

    on

    SYDNEY, Wednesday 26 August 2026 — New 2026 Sustainability Reports released by supermarket giants Coles and Woolworths this week demonstrate the retailers are failing on their commitments to end deforestation in their supply chains.

    Adele Chasson, Nature Policy Lead at Greenpeace Australia Pacific said:

    “These so-called sustainability reports are revealing. Despite their public commitments in 2024 and 2025, neither Coles nor Woolworths have taken deforestation-linked beef off their shelves. Meanwhile, bulldozers continue to tear up forests and bushland, pushing wildlife closer to extinction and causing mass toxic runoff to flow into the Great Barrier Reef. Millions of native animals like koalas are losing their homes to beef pastures each year, while the big supermarkets put off action.

    “Australians would be shocked to know that beef on the shelves of our biggest supermarkets could be pushing threatened species to the brink of extinction. Collectively Coles and Woolworths have made more than $2 billion in profits in the last year, profiting from the destruction of wildlife and precious Australian nature. Coles and Woolworths owe it to shoppers to deliver on their promises and end deforestation in their supply chains now.

    “As big beef buyers, Coles and Woolworths have an essential role to play in keeping Australia’s unique forests standing. They can help stop the Great Barrier Reef from being poisoned by runoff and protect iconic forest wildlife by taking deforestation off their shelves. It’s time these big companies put their money where their mouths are and follow through on their promise of sourcing and supplying deforestation-free beef.”

    Coles, Woolworths failing on deforestation commitments 

    Continue Reading

    Climate Change

    New Zealand moves to protect business with law curtailing climate litigation

    Published

    on

    New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.

    The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.

    Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.

    “Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.

    Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.

      Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.

      Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.

      In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.

      Corporate lobbying in the shadows

      Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.

      “That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”

      The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.

      The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.

      Green groups fail to stop bill

      The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.

      But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.

      A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.

      “Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035

      Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.

      But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.

      The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.

      Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”

      Copycat legislation on the rise

      New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.

      In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.

      The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.

      UN General Assembly backs “climate obligations” set by world’s top court

      Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.

      “Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.

      The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.

      New Zealand moves to protect business with law curtailing climate litigation

      Continue Reading

      Trending

      Copyright © 2022 BreakingClimateChange.com