Climate Smart Ventures (CSV) is collaborating with ACEN, the Rockefeller Foundation, the Coal to Clean Credit Initiative, and the Monetary Authority of Singapore on the pilot project featured in the case study.

In November 2022, ACEN completed the world’s first market-based Energy Transition Mechanism (ETM) transaction, enabling the energy company to accelerate the retirement of its SLTEC plant at least 15 years ahead of its expected end of technical life to 2040. Now, ACEN is planning to use transition credits to expedite the retirement by an additional decade, aiming for a 2030 shutdown.

In the case study, ACEN CEO Eric Francia emphasizes the urgency of addressing climate change risks, stating, “The world needs these retirements to be more aggressive, particularly in countries in emerging Asia, where our coal plants are among the youngest.” Francia details ACEN’s ETM, its transition credit pilot, and the just transition elements.

“Achieving just energy transitions is essential for Asia and other regions to build sustainable economies, ensuring that workers and communities are not left behind and can benefit from the opportunities of the growing renewable energy sector,” said Lawrence Ang, Managing Director of CSV. “ACEN’s just transition program is a groundbreaking initiative for a power company in an emerging economy. It addresses numerous interconnected challenges over a long-term horizon, including replacing coal generation with renewable energy, conducting responsible decommissioning, repurposing SLTEC’s assets, transitioning communities, and implementing workforce training programs.”

In the case study, Ang highlights options for workers post-CFPP closure and potential uses for the site, such as developing a large battery to leverage the existing grid connection or establishing a green manufacturing plant. “Proper assessments and dialogues are underway,” he notes, and the final decision will have implications for continued employment of staff and reskilling requirements.

Joseph Curtin, Managing Director, Power and Climate at the Rockefeller Foundation, discusses the draft methodology underpinning ACEN’s proposed carbon credit transaction, including its just transition components. The Coal to Clean Credit Initiative—a consortium of global experts supported by the Rockefeller Foundation—drafted the methodology.

Other insights and views on the ACEN project and just transition are included from Swati Dsouza and Chitra Priambodo of the Asian Development Bank, Lindsey Hibbert of the Carbon Trust, Joy Hernandez of the International Trade Union Confederation (ITUC) – Asia Pacific, and Nick Robbins of the Just Transition Finance Lab.

Read the detailed case study here.

**About Climate Smart Ventures**

Climate Smart Ventures delivers capital market-driven solutions for accelerating the shift to renewable energy to deliver a just and managed transition suited for Asia’s growth. Our expertise and projects span coal to clean utility-level energy transition, industrial decarbonization, grid transformation, transition finance, carbon credit project development, and government-level policy recommendations.  We also provide ESG and sustainability advisory services, focused on decarbonization and management of environmental and social impacts. Ecosystem building and collaboration are key elements of our firm, which partners closely with the region’s leading corporates and power portfolio owners, investors, off-takers, and others.

Contact for more information: contact@climatesmartventures.com