There’s good news from the corporate world, according to Carbon Credits.
A number of major corporations, including PepsiCo, Amazon, Netflix, Meta, and Mastercard, are leading the charge on a shift in carbon credits. How are they doing this? By teaming up with Kinetic Coalition, a global alliance of major corporations seeking to make change by unlocking clean energy investment in emerging economies.
Rather than utilizing technology offsets or tree-planting, as is the norm, these corporations are backing an early retirement for power plants run on coal. According to Carbon Credits, this is a significant step in alleviating damage to the climate and local environments.
These companies are using transition credits, rather than traditional carbon credits, meaning they’re paying the owners of coal plants to retire them early, Carbon Credits reported. Typically, companies are offsetting damage already done by paying for every metric ton of carbon produced, but this method allows for the avoidance of future damage while also making way for cleaner energy.
Not only do transition credits ensure that there are no future emissions from these coal plants — which would otherwise cause the planet to heat even more — but this method can also support workers leaving closed coal plants and help create new jobs in clean energy, benefiting both communities and the environment.
Best of all, estimates suggest that if transition credits become the norm, hundreds of billions of dollars could be allocated toward clean energy. In fact, Carbon Credits reported that the Kinetic Coalition may be able to provide between $72 billion and $207 billion by 2035, all on its own.
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As the Center for Climate and Energy Solutions President Nat Keohane explained to Carbon Credits, “Energy transition credits can accelerate the transition to clean energy systems for emerging economies, help companies reduce their supply chain emissions – and, most importantly, bring economic, health, and environmental gains to local communities. They offer an opportunity to achieve emission reductions at scale while benefiting companies and people – and Kinetic is excited to seize it.”
While we can’t predict the future of transition credits, the fact that these major corporations are utilizing them now is a significant step toward the continued transition from dirty energy to clean energy and could mark a substantial boost for the economies of cities and towns where these coal plants reside.
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