September 27, 2024 | 12:00am
MANILA, Philippines — As the country shifts to cleaner power, transition credits can help accelerate the early retirement of coal-fired power plants, according to the Ayala Group’s listed energy platform.
During the 2024 Climate Week NYC, ACEN Corp. president and CEO Eric Francia highlighted the crucial role of transition credits in achieving a just coal-to-clean energy transition in Southeast Asia.
“One of the challenges that we need to overcome is the global south mindset that we did not cause this global problem of climate change. It is a challenge to overcome that mindset because that leads to inaction or a passive mindset,” Francia said.
The Climate Week NYC, the biggest annual climate event of its kind, gathered leaders from the world of business, technology, politics, academia and civil society to discuss transition challenges in emerging markets.
Francia said transition credits, or the financing used to shorten the operation of coal plants, could help overcome roadblocks in energy transition, including resource constraints, land and infrastructure issues and the need for costly renewable energy replacements.
“We rise to the challenge, thanks to transition credits. We believe that this is a huge opportunity to show the world that it can be done. That’s why this pilot project is extremely important,” he said.
He also emphasized the need for a just transition that protects vulnerable communities during the shift from coal to clean energy.
According to ACEN, its participation in Climate Week NYC reinforced its commitment to advancing sustainable finance mechanisms and transitioning the region toward a low-carbon future.
ACEN recently signed a memorandum of understanding with GenZero and Keppel Ltd. to explore the utilization of transition credits for the early retirement of the South Luzon Thermal Energy Corp. coal plant in Batangas.
This project also involves the development of end-to-end technological solutions to replace the 246-megawatt baseload plant with a mid-merit integrated renewables and energy storage system.
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