RFP: VVB to Assess Early Retirement of Coal-Fired Power Plants Methodology

Verra has published a Request for Proposals (RFP) (PDF) for validation/verification bodies (VVBs) to review the draft of the Methodology for Accelerated Coal-Fired Power Plant Retirement Using a Just Transition (methodology development ID #M0233) in the Verified Carbon Standard (VCS) Program.

The methodology quantifies the emissions avoided by retiring power plants before the end of their expected operational period. It also requires the pairing of new renewable energy-generating capacity with the retired coal capacity to prevent leakage. Any residual leakage is accounted for by applying conservative discounts for all emissions from grid electricity needed to replace the retired plant.

The methodology can have a high impact on the energy sector by enabling owners or operators of coal-fired power plants to access finance that can support an early retirement of the plant without impacting ratepayers or preventing the plant operators or owners from meeting other fiduciary obligations. The methodology also includes comprehensive requirements to ensure a just transition for local communities and vulnerable groups who will be affected by the retirement of such plants.

The VVB assessment will align with procedures set out in section 6 of the Methodology Development and Review Process, v4.4 (PDF), but will focus exclusively on the following:

• Structure, clarity, and consistency of the methodology
• Greenhouse gas quantification
• Baseline date assessment
• Additionality assessment
• Verifiability

This alternative approach is allowed for per section 2.1.2 of the Methodology Development and Review Process, v4.4.

The draft methodology was open for public consultation between December 4, 2023, and January 16, 2024. It has been developed under the Coal to Clean Credit Initiative (CCCI), led by the Rockefeller Foundation (external).