Transition Credits: An Innovative Plan to Phase Out Fossil Fuels

Around the world, more and more programs are being launched to accelerate the shift away from fossil fuels. One such groundbreaking initiative is the Coal to Clean Credit Initiative (CCCI), designed to help fast-track the retirement of aging fossil-fueled power plants and replace them with renewable energy sources.

At the heart of this initiative are transition credits—a new type of carbon credit introduced by the Rockefeller Foundation. These credits are generated when a coal-fired power plant is shut down earlier than planned. In its place, clean energy sources such as solar, wind, and battery storage are developed.

The revenue from selling these credits can help finance the shift to clean energy, reduce greenhouse gas emissions, and at the same time support economic growth and improve health and living standards in vulnerable communities.

Verra, a global nonprofit organization that certifies carbon credits, has approved the methodology for generating transition credits. This approval ensures that the credits are of high quality and deliver real environmental and social benefits.

The new crediting framework includes robust safeguards, such as creating jobs in coal-dependent communities, improving access to energy, and protecting vulnerable populations affected by mine or plant closures.

The goal is to support the transition of 60 power plants by 2030—a move expected to unlock up to $110 billion in investment.