28 August 2024 – Two momentous events took place in mid-August for Southeast Asia’s energy transition potential. On August 15, the Philippines and Singapore signed a Memorandum of Understanding (MOU) for collaboration on carbon credits in alignment with the goals of the Paris Agreement climate treaty. Specifically, Article 6 of the Paris Agreement enables countries to transfer carbon credits earned from the reduction of greenhouse gas emissions to help other countries meet their climate targets. This collaboration could help the region accelerate its shift from coal to clean energy, a critical step in the broader energy transition and a core focus of Climate Smart Ventures’ projects.

Additionally, energy company ACEN, Temasek’s GenZero, and asset manager and operator Keppel Ltd. just one day later signed a separate MOU to pilot the use of carbon credits for the accelerated retirement of the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant (CFPP) in the Philippines. This project could also come under Article 6 of the Paris Agreement collaboration between the Philippines and Singapore.

Upon completion, this project is anticipated to be among the world’s first converted CFPPs to generate transition credits.

Climate Smart Ventures is pleased to be collaborating with ACEN and several other partners on ACEN’s transition credit pilot. We look forward to contributing to the advancement of carbon and transition credits across Southeast Asia.

Learn more about the Philippines – Singapore MOU here.

Learn more about the ACEN, GenZero, and Keppel Ltd. MOU here.