Transition Credits
The pioneering initiative between ACEN, CCCI and MAS seeks to develop the world’s first Transition Credit (coal-to-clean pilot project) that would leverage carbon finance to phase out a coal-fired power plant and replace it with renewable energy. This first of-its-kind project would mark a major step towards phasing out coal in line with the Paris Agreement.
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May 2025 – Since 2023, ACEN has been collaborating with the Monetary Authority of Singapore (MAS) and The Rockefeller Foundation, to develop a methodology that quantifies avoided emissions from early coal retirements while ensuring social and economic safeguards. The framework underwent extensive public consultation, reinforcing its credibility and potential for global adoption.
At the GenZero Climate Summit 2025 in Singapore, Verra CEO Mandy Rambharos announced the organisation’s approval of the Coal to Clean Credit Initiative (CCCI) Methodology for the Accelerated Retirement of Coal-Fired Power Plants under its Verified Carbon Standard (VCS) Program.
This approval paves the way for the generation of high-integrity Transition Credits by enabling the early retirement of coal-fired power plants ahead of schedule—under a mechanism designed to uphold the highest integrity standards. It ensures a Just Transition by supporting affected communities and preventing emissions leakage while maintaining security energy through clean energy replacement.
Guests of Honour, Grace Fu, Minister for Sustainability and the Environment of Singapore and Maria Antonia Yulo-Loyzaga, Secretary for the Department of Environment and Natural Resources of the Philippines, witnessed the signing of the MOU by Cindy Lim, CEO of Keppel’s Infrastructure Division, Frederick Teo, CEO of GenZero, Cezar Consing, Chairman of ACEN, and Eric Francia, President and CEO of ACEN. Other leaders who were present at the signing ceremony include Jaime Augusto Zobel de Ayala, Chairman of Ayala Corporation and Board Director of Temasek, Fernando Zobel de Ayala, Board Director of Ayala Corporation, and Jaime Alfonso Zobel de Ayala, Board Director of ACEN.
August 2024 – ACEN, GenZero and Keppel Ltd. signed a Memorandum of Understanding (MOU) to jointly explore the origination and utilisation of Transition Credits (TCs) to accelerate the retirement of the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant in the Philippines and replace it with a clean energy.
Under the MOU, the parties will jointly undertake a development study to explore utilising TCs to facilitate the project’s implementation and achievement of the early retirement goal. The origination and sale of TCs will help to accelerate the decommissioning of the 246 MW SLTEC CFPP located in Calaca, Batangas by 10 years (i.e. 2030), and also support just transition initiatives.
This milestone came after the Philippine and Singaporean governments signed an MOU to collaborate on carbon credits aligned with Article 6 of the Paris Agreement, which allows countries to cooperate to achieve emissions targets.
December 2023 – At COP28, ACEN announced its partnership with The Rockefeller Foundation’s Coal to Clean Credit Initiative (CCCI) and the Monetary Authority of Singapore (MAS) to explore major step towards accelerating the phase-out of coal plants in line with the Paris Agreement.
As a leader in energy transition, ACEN is looking to further accelerate the transition of SLTEC coal plant to clean technology as early as 2030, and replace the foregone generation with clean, reliable, and affordable energy. The replacement energy is likely to come in the form of Integrated Renewables and Energy Energy Storage System (IRESS) such as a combination of wind and solar power plant integrated with battery storage.
Transition credits will be an important mechanism to help ensure a just transition, ensuring affordability of the replacement energy as well as the just transition of the local community and the affected workers.
