In a move to combat polluting fossil fuels, a coalition led by The Rockefeller Foundation is looking to close a coal plant near Manila 10 years ahead of schedule, with the goal of avoiding millions of tons of emissions and monetizing them through carbon credits. Carbon credits allow polluters to offset emissions by paying for avoided emissions elsewhere. While some developed countries have phased out coal, developing economies still heavily rely on it for energy production. The Coal to Clean Credit Initiative aims to close coal plants early and replace them with renewable energy sources, such as wind and solar power. The initiative faces criticism regarding the validity of carbon credits and the potential for double counting emissions reductions.
Despite concerns, the initiative is moving forward with support from the Monetary Authority of Singapore and private sector interest. The focus is on developing a robust methodology to ensure the credibility of the carbon credit program. With renewable energy becoming more cost-effective, stakeholders are optimistic about the potential for transitioning away from coal plants. By mid-2025, deals for carbon credits priced in the “tens of dollars” could be finalized, providing a financially viable solution for phasing out coal plants in developing countries.
This article was originally published on Iraqi News.