Rosalind Evans
As the world grapples with the urgent need to transition from fossil fuels to sustainable energy sources, the Rockefeller Foundation has made a significant move at the COP28 climate talks in Dubai. The foundation, leading a consortium, has introduced an innovative pilot initiative to retire coal power plants before their expected operational end. This move announced amidst the ongoing United Nations talks, highlights a proactive approach to addressing climate change and the global dependency on fossil fuels.
The Rockefeller Foundation, in collaboration with various partners, has announced the “Coal to Clean Credit Initiative (CCCI)” during the COP28 climate talks. This initiative represents a groundbreaking step towards reducing reliance on fossil fuels, particularly coal. With the support of the Philippine energy company ACEN and the Monetary Authority of Singapore, CCCI aims to decommission the South Luzon Thermal Energy Corporation (SLTEC) plant in the Philippines by 2030, a full decade ahead of its scheduled retirement.
Rajiv Shah, President of the Rockefeller Foundation, emphasized the importance of this initiative, stating, “To retire coal plants, avoid those emissions, and create jobs, we need to create the right incentives for asset owners and communities and mobilize additional finance.” This statement underlines the dual focus of the initiative: environmental protection and economic viability.
CCCI’s approach involves utilizing carbon credits to finance the early closure of coal plants. This unique method is a “first of its kind” project. The initiative plans to collaborate with schemes like the Energy Transition Mechanism (ETM) to expedite plant closures using credits from the CO2 reductions achieved through early shutdowns. Vikram Widge, a key figure in the scheme and former head of carbon finance at the World Bank, highlighted the role of carbon credits in this ambitious plan.
However, this innovative approach has yet to be without criticism. Environmental groups and experts like Gerry Arances, executive director of the Philippines’ Center for Energy, Ecology, and Development, have raised concerns about the effectiveness and fairness of using carbon credits, arguing that it might allow for the continued use of fossil fuels rather than direct emission reductions.
The discussions at COP28 also touched on the broader issue of establishing a global carbon price, a long-debated but elusive goal. Many believe an international carbon price could provide the financial framework to support initiatives like CCCI. Widge pointed out the challenges and potential of a higher carbon price in financing the complete transition from coal.
Complementing the CCCI is the Energy Transition Accelerator (ETA), announced by U.S. climate envoy John Kerry. Like CCCI, ETA aims to facilitate the shift from coal through high-quality carbon credits, potentially generating substantial transition finance by 2035.
The Rockefeller Foundation’s initiative at COP28 marks a significant step in the fight against climate change, offering a novel approach to hastening the transition from coal to cleaner energy sources. While challenges and debates surround using carbon credits and establishing a global carbon price, the initiative symbolizes a proactive and innovative effort to mitigate the environmental impact of fossil fuel consumption. As the world seeks solutions for a sustainable future, projects like CCCI and ETA could pave the way for more effective and equitable climate action.
