ACEN: Transition credits gaining momentum in Phl

Ayala-led ACEN Corp. is upbeat on the country's progress in using transition credits to reduce carbon emissions, but calls on the government to intensify efforts in establishing the necessary policies.

- By BRIX LELIS

"Well, it's progressing nicely. I say there's a good momentum," ACEN president and CEO Eric Francia said in a recent interview, banking on the partnership between the Philippines and Singapore.

The two countries inked a memorandum of understanding (MOU) on carbon credits in August, signifying their desire to work together to achieve national climate goals while fostering sustainable development.

This is aligned with Article 6 of the Paris Agreement, an international treaty on climate change mitigation adopted in 2015.

"The transition credits will have to be under Article 6 of the Paris Agreement so that we can attain the highest quality and integrity for the credits," Francia said.

Transition credits are a new type of carbon credit earned from the reduction in greenhouse gas emissions when coal plants are decommissioned ahead of schedule and replaced with clean, renewable energy sources.

To further advance their net zero goals, buyers such as governments and companies may purchase these credits to lower their carbon footprint.