A coal plant near Manila, Philippines, is set to become a model for how developing nations can transition away from polluting fossil fuels. An alliance led by The Rockefeller Foundation plans to close the South Luzon Thermal Energy Corporation (SLTEC) ten years early, avoiding millions of tons of emissions and monetizing them as carbon credits.
The initiative, known as the Coal to Clean Credit Initiative (CCCI), aims to cover the costs of closing coal plants and converting them to renewable energy sources like wind and solar. The SLTEC was originally scheduled to operate until at least 2040 but is now expected to shut down in 2030, potentially preventing up to 19 million tons of CO2 emissions.
Despite the initiative, challenges remain. Coal remains a significant energy source for many developing countries, and transitioning away from it involves considerable economic and political hurdles. Critics have raised concerns about the validity of carbon credits and the potential for 'double counting' emissions reductions.
The CCCI has garnered support from the Monetary Authority of Singapore and the private sector, with hopes that carbon credits priced in the 'tens of dollars' could be signed by mid-2025. The initiative's success could influence similar projects globally, potentially reshaping energy policies in developing countries.
Source: Daily Mail, October 9, 2024.