ACEN inks deal with MAS, Rockefeller Foundation for coal plant phase-out
The agreement will involve the use of Transition Credits for the SLTEC coal plant.
Philippine-based energy platform, ACEN Corporation, Singapore's central bank, and The Rockefeller Foundation’s Coal to Clean Credit Initiative (CCCI) will begin a major plan for the speedy phase-out of coal plants.
ACEN, CCCI, and the Monetary Authority of Singapore (MAS) will entail the development and testing of Transition Credits as a measure to transition the SLTEC coal plant to clean technology by 2030.
This initiative between the three organisations aims to utilise Transition Credits to leverage carbon finances to enable the transition to renewable energy. It would be a first-of-its-kind project that follows the standards of the Paris Agreement.
Under the deal, the MAS’ Transition Credits Coalition (TRACTION) was launched where credits are tested for early retirement of coal-fired power plant transactions, expanding the study, and the scale of the conversion of coal-fired power plants.
“Today’s development marks a critical contribution to accelerating a global energy transition. Without a rapid and proactively managed transition away from coal-fired power, the world will not meet its climate goals; the urgency of solving this problem cannot be understated,” Eric Francia, President & CEO of ACEN Corporation, weighed in.
Currently, ACEN has successfully established the world’s first market-based Energy Transition Mechanism, involving the early retirement of the 246 MW SLTEC coal plant and switch to clean technology by 2040 after 25 years. The company has solidified itself as a leader in clean energy generation.