ACEN, the Ayala group’s listed energy platform, took center stage at this year’s Climate Week NYC, the world’s largest annual climate event. Joining leaders from the worlds of business, technology, politics, academia, and civil society, ACEN showcased its commitment to pioneering the coal-to-clean energy transition through the innovative use of transition credits.
ACEN’s President and CEO, Eric Francia, participated in a key panel discussion titled “Harnessing Transition Credits to Drive a Coal to Clean Transition in Emerging Markets.” This panel, co-organized by The Rockefeller Foundation and the Monetary Authority of Singapore (MAS), explored the pivotal role transition credits can play in accelerating the retirement of coal plants, particularly in Southeast Asia. The focus was on replacing these plants with renewable energy sources while ensuring a just transition for communities affected by the shift.
Moderated by Gillian Tan from MAS, the panel featured a diverse range of experts, including 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. Elizabeth Yee, Executive Vice President of Programs at the Rockefeller Foundation, and Singapore’s Ambassador for Climate Action, Ravi Menon, delivered opening remarks, emphasizing the critical need for a rapid transition from coal to clean energy.
Elizabeth highlighted the role of transition credits in facilitating the early retirement of coal plants, allowing for their replacement with renewable energy while providing vital support for workers and communities. She also discussed partnerships with the Coal to Clean Credits Initiative and the Energy Transition Accelerator to advance pilot projects, emphasizing The Rockefeller Foundation’s commitment to high standards and community engagement.
Ambassador Menon built upon this, underscoring the significant contribution of coal-fired power plants in Asia to global greenhouse gas emissions – accounting for one-seventh of the total. He stressed the challenges associated with shutting down these plants and advocated for investment in their early phase-out, ensuring a just transition that protects communities and maintains energy reliability.
During the panel discussion, Francia highlighted the critical role of transition credits in addressing the challenges of energy transitions in emerging markets. These challenges include resource constraints, land and infrastructure issues, and the need for costly renewable energy replacements. He emphasized the need for blended finance and a just transition, discussing the challenges and opportunities presented by implementing transition credits in Southeast Asia.
“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,” Francia said.
Francia also underscored the importance of a just transition that protects vulnerable communities during the shift from coal to clean energy. The panel discussion concluded with a powerful call for action, urging global stakeholders to collaborate in developing and implementing transition credits to accelerate the path towards a cleaner and more sustainable future.
Beyond the panel discussion, ACEN, alongside over 100 international organizations, joined forces in supporting the Global Renewables Alliance’s open letter to world leaders. The letter, published at the opening of Climate Week NYC, called upon governments to set ambitious, specific, and actionable targets to meet the world’s 1.5°C target.
“This letter sends a clear message to governments: Nationally Determined Contributions (NDCs) are not just a United Nations requirement but a commitment to our children and grandchildren. They signify the global community’s roadmap to securing a sustainable future and fostering a prosperous economy for future generations,” the letter stated.
ACEN’s participation in Climate Week NYC exemplifies the company’s leadership in advancing sustainable finance mechanisms and guiding Southeast Asia towards a low-carbon future.
About ACEN
ACEN is the listed energy platform of the Ayala Group, with a rapidly expanding presence in the Philippines, Australia, Vietnam, India, Indonesia, Lao PDR, and the U.S.A. The company currently boasts 4.8 GW of attributable renewables capacity in operation and under construction. ACEN aims to provide clean, reliable, and affordable energy in the Asia Pacific region and has set a target of growing its renewables capacity to 20 GW by 2030. The company is a pioneer in early coal retirement initiatives and has committed to achieving net-zero greenhouse gas emissions by 2050. Visit www.acenrenewables.com to learn more.
