Transition credits can be generated based on the emissions reductions achieved by retiring a coal plant early. These credits can consequently be sold in carbon markets to generate an additional financial stream for plant operators and cover the costs associated with early retirement and securing alternative cleaner power sources.
Mizuho Bank has entered into a memorandum of understanding (MOU) with Temasek's decarbonisation-focused investment subsidiary GenZero to partner on the development of transition credits to accelerate the early retirement of coal-fired power plants (CFPPs).
CFPPs are the single largest source of carbon emissions globally. “Transition credits play a vital role in accelerating the early retirement of CFPPs and their transition towards cleaner energy sources,” reads a Feb 20 joint press release.
