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The Philippines tests "transition credits" to fund early coal plant closures and boost renewables, aiming to attract investment while tackling climate change.
The Philippines is testing "transition credits" to accelerate retiring coal plants by funding their shift to renewables, with the first pilot at a 270-megawatt plant in Calaca City.
The credits assign value to emissions prevented by early coal closures, aiming to unlock billions in investment across Asia-Pacific coal plants by 2030.
Backed by the Rockefeller Foundation and private partners, the program seeks to balance energy needs with climate goals amid rising regional coal use.
While proponents highlight its potential to speed clean energy transitions, experts warn of carbon market risks like greenwashing and inaccurate reporting, with the model’s real-world effectiveness still unproven.
Filipinas está probando "créditos de transición" para financiar el cierre prematuro de plantas de carbón e impulsar las energías renovables, con el objetivo de atraer inversiones mientras aborda el cambio climático.