The Rockefeller Foundation and Global Energy Alliance for People and Planet (GEAPP) on Wednesday (June 14) announced a Coal-to-Clean-Credit Initiative (CCCI) which will set a new standard for the use of carbon finance to incentivize just transition – away from coal-fired power plant to renewable energy in emerging economies.
Led by GEAPP, the initiative is supported by Climate Policy Initiative (CPI), Rocky Mountain Institute (RMI) which will bring in technical and convening expertise, and South Pole which will serve as the implementing partner. The partners are expected to begin the consultative process for developing methodology this month setting global benchmarks for carbon-financed coal transition projects. Further, the Rockefeller Foundation and GEAPP plan to present CCCI's methodology at the United Nations Climate Change Conference (COP28) slated to be held end of this year in Dubai. The transaction for coal-to-clean credits could be signed in 2024 following its accreditation.
"Emerging and developing countries have the right to create opportunity, jobs, and electricity for their people without triggering a climate emergency," said Dr. Rajiv J. Shah, President of The Rockefeller Foundation.
"The Coal to Clean Credit Initiative can help these countries retire coal plants and replace them with cleaner power, which can avoid tens of millions of tons of emissions per plant while still unlocking opportunity for people."
Through these efforts, CCCI is looking to set new benchmarks for carbon-financed coal transition projects and accelerate global coal-to-clean transition.
CCCI will be developing a methodology that can be used to develop the world's first project approach to speed up the managed and equitable phase-out of coal plants and incentivize their full or partial replacement with clean power in this decade. GEAPP considers that the revenue generated from selling the CCCI's 'coal-to-clean' credits could provide incentives for coal plant owners to change course and invest in renewable energy, while also generating funding to support the transition of workers and communities away from coal-fired power.
Presently, CCCI has finalized a high-level partnership with the Republic of Indonesia to develop a roadmap for the generation of coal-to-clean credits for the managed and equitable phase-out of coal plants and is scoping work in South Africa and Vietnam for similar partnership.
"The JETP Indonesia Secretariat welcomes the Coal to Clean Carbon Initiative. We view this as a real opportunity to support one of the key priorities of JETP Indonesia, namely the early retirement of coal power plants," said Edo Mahendra, Head of Indonesia's JETP Secretariat.
"The task may be daunting, but with the right level of international support and political commitment that you have from the Government of Indonesia, we can collectively prove that accelerating the retirement of coal power plants can be made possible."
More importantly, CCCI's just transition plans will be developed in partnership with local communities for each project keeping employment, entrepreneurship and reskilling of coal workers and local communities at the forefront of the efforts.
"This initiative is important not only because it creates financial incentives for emerging economies to rapidly transition from coal to renewable energy but does so in a just way to ensure jobs and livelihoods are properly accounted for as each project develops and scales," said Simon Harford, CEO of GEAPP.
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