This methodology was posted for an initial public consultation from 22 Nov 2023 - 05 Jan 2024. Feedback was considered and incorporated, and now Gold Standard is seeking further feedback, particularly on the topics of market leakage, embodied emissions and Just transition requirements.
Background
Globally, coal fired thermal power plants are the major source of base power supply. However, they are equally the largest source of GHG emissions, accounting for approximately 10 billion tCO2e of the total 55.3 billion tCO2e released annually. Continuation of coal fired thermal power plants is therefore a considerable setback to the concerted global climate action and to the efforts to keep the Earth’s warming to within 1.5ºC, compared to that of the pre-industrial time. To limit warming to 2ºC or below, and without new builds, existing coal fired power plants will need to retire 10 to 25 years earlier than the historical average operating lifetime.
This methodology supports a Just Transition through the simultaneous closure of coal-fired power plants and the installation of replacement renewable energy power plants, in a way which does not jeopardise energy security and is fair and inclusive for all stakeholders.
This methodology was posted for an initial public consultation from 22 Nov 2023 - 05 Jan 2024. Feedback was considered and the following changes have been made:
Key changes from initial draft:
· Instead of setting a set date before which a mandate is not expected to come into force (e.g., 31/12/2030), the methodology will take a 'rolling' approach and thus states that "a mandate is not expected to be implemented or designed in the next 3 years"
· The maximum allowed phase out period has been increased from 3 years to 5 years (i.e., the period during which CFPP is replaced by the matched by REP, at 1:1 MWh).
· A provision has been included to review the methodology prior to Jan 1st 2027 to explore expanding the scope to other fossil fuels for power generation and to use-cases beyond power generation.
· The period of uninterrupted commercial operation has been increased from 3 to 5 years. This operational data will be used to establish the required capacity of the REP (1:1 MWh replacement ratio).
· Market leakage is considered. Developers must demonstrate that there is no material risk of market leakage (e.g., the mine supplying coal to the CFPP closes down in line with the CFPP phase-out) or a leakage deduction must be adopted.
