The Rockefeller Foundation is backing an innovative pilot mechanism that aims to use carbon credits to facilitate the early powering down of a coal-fired power plant in the Philippines.
The Coal to Clean Credit Initiative (CCCI), which brings together a coalition of global experts, is making efforts towards phasing out coal through the use of carbon credits.
Introduced in June 2023, CCCI’s ‘coal-to-clean’ credits are designed to encourage a fair shift from coal to clean energy in emerging markets and developing economies.
Additionally, they will provide funding to support plans for a fair transition that would invest in creating new job opportunities, promoting entrepreneurship, and retraining workers in communities that have historically depended on the fossil fuel industry for their livelihoods.
The initiative is committed to implementing this credit methodology, aspiring to accelerate the fair transition of coal-powered facilities in developing nations globally in the next few years, mitigating the expected emission of numerous tons of carbon dioxide (CO2) into the air.
During the COP28 conference in Dubai, the CCCI announced its partnership with the Philippines’ ACEN, a leading energy provider in the country, to begin exploring the world’s first coal-to-clean project in the Philippines.
Rajiv J. Shah, the President of the Rockefeller Foundation, commented on the announcement by stating that in order to decommission coal plants, reduce emissions, and generate employment opportunities, it is essential to establish suitable incentives for asset owners and communities and to secure additional financial resources.
He also emphasized that the groundbreaking CCCI agreement will introduce a coal-to-clean credit methodology in the Philippines, which is a crucial advancement in reducing dependency on coal and creating a more promising future.
The Rockefeller Foundation has already launched programs focused on reducing the use of coal-fired power in Asia and accelerating the deployment of battery storage for renewable energy.