Early retirement of coal plants to significantly cut CO2 emissions

The early retirement of coal supply agreements in the Philippines is expected to significantly reduce carbon dioxide (CO2) emissions, aligning the country with the objectives of the Paris Agreement.

- RICHMOND MERCURIO

Climate analytics TransitionZero said retiring coal plants five years ahead of schedule could prevent 290 metric tons of CO2 emissions, almost double the Philippines' annual CO2 emissions from fossil fuels and industry. 

But with buyouts for early retirement seen costing between $19,198 per megawatt (MW) to $2.8 million per MW, TransitionZero said there is a need for clear policy directions to stay aligned with the Paris Agreement by incentivizing early movers for coal retirements.

"The Philippine energy transition is a complex undertaking that requires evidence-based planning and policies," TransitionZero Southeast Asia lead Isabella Suarez said.