Verra has officially launched the world’s first carbon credit methodology aimed at accelerating the retirement of coal plants and replacing them with renewable energy. Developed with the Coal to Clean Credit Initiative (CCCI), the new rules allow the issuance of "transition credits" based on avoided emissions, using a plant’s expected lifetime as the baseline. Critically, at least 2% of expected revenues must be allocated to supporting a just transition for affected workers and communities. This methodology, now applicable to both regulated and deregulated electricity markets, is a key tool for financing early coal closures—an urgent need for achieving global climate goals. A 246 MW coal plant in the Philippines will be the first to pilot the framework, aiming to cut millions of tonnes of CO₂ emissions by retiring a decade earlier than planned. While transition credits open new opportunities, they also face scrutiny regarding additionality and integrity. The Integrity Council for the Voluntary Carbon Market (ICVCM) will review methodologies under its Core Carbon Principles framework to ensure credibility.
