ACEN Corp., the Ayala Group’s listed energy platform, said Thursday transition credits can pave the way for the early retirement of coal plants and replace them with renewable energy, its top official said.
“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. But we think different. 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,” ACEN president and chief executive Eric Francia said at Climate Week NYC forum.
ACEN, GenZero and Keppel Ltd. (Keppel) are exploring the utilization of transition credits to accelerate the retirement of the 246-megawatt South Luzon Thermal Energy Corp. (SLTEC) coal-fired power plant in Batangas and replace it with a clean energy dispatch facility.
When completed, the project is expected to be one of the first converted CFPPs in the world to generate TCs.
Francia also underscored the importance of a just transition that protects vulnerable communities during the shift from coal to clean energy during the forum panel discussion.
Francia emphasized the significant role transition credits can play in overcoming the challenges of energy transitions in emerging markets, including resource constraints, land and infrastructure issues and the need for costly renewable energy replacements.
ACEN joined the Climate Week NYC, the biggest annual climate event of its kind, with leaders from the world of business, tech, politics, academia and civil society. The company’s participation reinforces its pioneering role in the coal-to-clean energy transition through the use of transition credits.
ACEN’s participation in Climate Week NYC highlights the company’s leadership in advancing sustainable finance mechanisms and transitioning Southeast Asia towards a low-carbon future.
Francia joined key figures in a panel discussion entitled “Harnessing Transition Credits to Drive a Coal to Clean Transition in Emerging Markets”.
Co-organized by the The Rockefeller Foundation and Monetary Authority of Singapore (MAS), the panel, moderated by Gillian Tan from MAS, also included Scott Morris of the Asian Development Bank (ADB), Nat Keohane from the Center for Climate and Energy Solutions and Demetrios Papathanasiou from the World Bank Group.
