New analysis led by RMI assesses the
climate impact of closing a Philippines coal plant 10 years early and
replacing it with renewable energy, via the Coal to Clean Crediting
Initiative (CCCI)
Elizabeth Yee,
Executive Vice President of The Rockefeller Foundation,
Eric Francia, President & CEO of
ACEN Corporation, announce the CCCI update during Ecosperity
Week
SINGAPORE, April 17,
2024 /PRNewswire/ -- ACEN Corporation and The
Rockefeller Foundation announced today that the first Coal to Clean
Credit Initiative (CCCI) pilot project under consideration in
the Philippines could avoid up to
19 million tons of carbon dioxide (CO2) emissions. An RMI-led
assessment supported by The Rockefeller Foundation explored the
climate impact of leveraging carbon finance to close South Luzon
Thermal Energy Corporation (SLTEC) coal plant in 2030 – ten years
ahead of its scheduled retirement – and replacing it with clean
power and battery storage, while supporting the livelihoods of
workers affected by the plant's early transition.
Announced during Financing Asia's Transition Conference, the
analysis applied CCCI's draft methodology, currently under review
by Verra, to assess SLTEC's eligibility for carbon financing. It
found that the project meets the eligibility criteria of the draft
methodology and that decommissioning by 2030 would not be possible
without carbon finance.
Eric Francia, President &
CEO of ACEN Corporation, said: "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."
Dr. Rajiv J. Shah, President
of The Rockefeller Foundation, said: "Today's announcement
is an important next step for CCCI and everyone counting on
innovative technical and financial solutions to the threat of
climate change. Right now, vulnerable people around the world are
already experiencing the effects of climate change first and worst.
This pilot can give us the necessary data, lessons, and hope to
replicate a similar approach in other emerging markets and
developing economies, potentially avoiding billions of tons of
carbon emissions while providing clean, reliable electricity to
those who need it most."
There are over 6,500 coal-fired units in operation across the
world, which collectively will emit an estimated 190 billion tons
of CO2 over their remaining operational lifetimes. The majority are
insulated from market competition by long-term contracts. In
response, CCCI is designing and testing a new 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. CCCI and ACEN are
working with the Monetary Authority of Singapore (MAS) to advance the project.
RMI, a technical partner of The Rockefeller Foundation under
CCCI, led the initial assessment of the eligibility of the SLTEC
transaction using the CCCI methodology. It found that a carbon
credit-backed retirement as early as 2030 could yield positive
financial, social, and climate outcomes when compared to a 2040
retirement. It also found that carbon finance would be required to
cover three categories of cost: (1) costs associated with the early
retirement of SLTEC's contract; (2) costs associated with 100%
clean replacement of SLTEC's generation; and (3) decommissioning
and just transition needs. Further due diligence was recommended to
transparently stress test key assumptions.
This is the first update on the partnership between ACEN, CCCI,
and MAS since COP28, when the
intention to collaborate on a transition credits pilot was
announced.
In line with project plans and ongoing dialogues with partners,
ACEN, which fully divested from SLTEC in 2022 and is coordinating
the early closure of SLTEC with the owners of the plant for this
pilot project, seeks to complete the Project Design Document (PDD)
for the pilot by 2024, aligned to an approved standard and
methodology. The PDD will further provide details on the programs
to ensure a just transition for affected communities and workers
following a consultative process, as well as plans for the
responsible decommissioning of SLTEC and the rollout of an
affordable and reliable energy replacement for the CFPP (i.e.,
through wind, solar PV, and battery).
By 2025, ACEN hopes to finalize buyer discussions and reach a
financial close for this world's first coal-to-clean carbon credit
transaction.
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About ACEN Corporation
ACEN is the listed energy platform of the Ayala Group. The
company has around 4,800 MW of renewable energy capacity in
operations and under construction across its key markets in
the Philippines, Australia, Vietnam, India, and Indonesia.
As one of the fastest-growing platforms for renewable energy in
the Asia Pacific region, ACEN aims
to increase its renewable capacity to 20 GW by 2030. This goal will
help provide clean, reliable, and affordable energy to more
people.
ACEN is committed to achieving its goal of 100% renewable energy
in its generation portfolio by 2025 and becoming a Net Zero
greenhouse gas emissions company by 2050.
https://www.acenrenewables.com
About The Rockefeller Foundation
The Rockefeller Foundation is a pioneering philanthropy built on
collaborative partnerships at the frontiers of science, technology,
and innovation that enable individuals, families, and communities
to flourish. We make big bets to promote the well-being of
humanity. Today, we are focused on advancing human opportunity and
reversing the climate crisis by transforming systems in food,
health, energy, and finance. For more information, sign up for our
newsletter at rockefellerfoundation.org and follow us on X
@RockefellerFdn.
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SOURCE The Rockefeller Foundation