Unlocking capital to power the clean energy transition in emerging economies
Kinetic Coalition drives and accelerates corporate investment into emerging economies’ clean energy systems – delivering reliable, affordable clean energy and lasting economic, health, and environmental benefits to local communities.
What we do
Countries and companies need access to clean, affordable, and reliable energy. Kinetic Coalition enables corporate investment in clean energy systems by connecting catalytic capital with high-impact projects.
Through purchasing high-integrity energy transition credits, companies can reduce value chain emissions while scaling clean and reliable energy systems in emerging economies – delivering long-term benefits to local communities.
Our pilots
Channeling investment in the Dominican Republic
The Dominican Republic aims to cut emissions 27% below business-as-usual by 2030, including a 7% unconditional reduction and a 20% conditional one based on external funding. Kinetic Coalition is developing a sector-wide approach using energy transition credits to drive system-level change in the power sector and support a cleaner, more reliable grid.
Advancing early coal plant closure in the Philippines
The Philippines aims to source 35% of its power from renewables by 2030 and over 50% by 2050. Kinetic Coalition is working to unite corporate buyers of energy transition credits to support early coal plant retirement and renewable energy development.
Transforming the power sector in Chile
Chile aims to cut black carbon emissions as a step toward carbon neutrality by 2050. Kinetic Coalition is exploring a sector-based crediting approach to drive long-term emission reductions and support a reliable, affordable, and accessible power transition.
Kinetic Coalition enables companies to create impact at a scale no individual company could achieve alone, while unlocking the catalytic capital emerging economies need to advance affordable, reliable clean energy systems.
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We aggregate corporate investment through high-integrity energy transition credits that support emerging economies’ clean energy transition programs and projects.
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Our new approach aspires to drive large-scale transformation for entire energy systems, decarbonizing power through a broad range of activities – from early coal plant retirement to accelerated clean technology and renewables deployment, grid and storage improvements, and implementation of enabling policies.
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Our energy transition credits will represent rigorously quantified and verified reductions in electricity emissions and can be applied towards reducing emissions within companies’ value chains.
Early estimates suggest Kinetic Coalition could drive billions of dollars of investment into emerging economies to support clean, reliable, and affordable energy systems and help meet climate goals.
Investments from the sale of energy transition credits will leverage hundreds of billions of dollars for much–needed financing of clean energy systems in emerging economies.
Your questions answered
What is Kinetic Coalition?
Kinetic Coalition is a new approach for driving and accelerating corporate investment in clean energy systems in emerging economies, delivering reliable, affordable clean energy, and bringing economic, health, and environmental benefits to local communities.
Who is behind Kinetic Coalition?
Kinetic Coalition is an independent, non-profit initiative. It is coordinated by the Center for Climate and Energy Solutions (C2ES), which serves as its Secretariat .
How is environmental integrity upheld?
Kinetic Coalition is firmly dedicated to upholding the highest standards of environmental integrity. We’re guided by clear foundational principles:
- Incentivize high-impact actions and strategies across the power sector to advance the development of clean energy systems
- Support emerging economies and asset owners in the implementation of these ambitious strategies
- Enable corporate buyers to finance high-integrity emissions reductions within and beyond their value chains, in alignment with their net zero strategies
- Generate high-integrity energy transition credits that represent real and additional emissions reductions
- Promote a transition to clean energy systems that bring economic, health, and environmental benefits to local communities
- Catalyze new climate finance that supplements, not substitutes, for existing sources
What companies and organizations are involved in Kinetic Coalition?
Kinetic Coalition engages with more than 20 global companies committed to accelerating the transition to clean energy systems, reducing value chain emissions, and bringing economic, health, and environmental benefits to local communities around the world.
These businesses are working with Kinetic Coalition in its early-stage development to shape the initiative.
Why should companies get involved?
Kinetic Coalition includes a buyers’ alliance that allows businesses to purchase high-integrity energy transition credits to reduce value chain emissions and provide catalytic capital to advance clean energy systems.
We provide corporate buyers with the efficiencies, predictability, and confidence necessary to make these investments.
The buyers’ alliance enables companies to have impact at a scale no individual company could achieve alone, enabling reliable, affordable energy systems that bring economic, health, and environmental benefits to local communities.
Why should countries get involved?
Countries need clean, affordable, and reliable energy. Increasingly that means more clean energy and clean energy–enabling technologies and policies.
Although emerging and developing economies accounted for over 80% of global energy demand growth last year (according to the International Energy Agency), only around 15% of global clean energy spending was in emerging and developing countries outside China, highlighting a significant gap in bringing clean energy to these markets.
Kinetic Coalition aggregates corporate investment through energy transition credits, enabling emerging economies to unlock the essential capital they need to advance affordable, reliable clean energy systems that benefit their people and economies and help meet their climate targets.
We provide countries and projects with the efficiencies, predictability, and confidence necessary to make these investments.
What are energy transition credits and how does Kinetic Coalition utilize them?
Kinetic Coalition will use high-integrity energy transition credits that help meet climate goals and make the shift to clean energy systems more economically feasible.
By purchasing these credits, companies contribute to the necessary funding for the clean energy transition and, in return, receive rigorously verified and quantified emissions reduction credits that can be applied toward reducing emissions within their value chains.
Through Kinetic Coalition, companies can make advance purchase commitments to create the certainty necessary to enable clean energy system investments.
How do energy transition credits differ from other carbon credits?
Energy transition credits are a new type of carbon credits with a specific focus on accelerating the transition to clean energy systems. The anticipated revenue stream created by these credits can be leveraged by host countries and asset holders to help unlock some of the upfront finance needed for the implementation of their energy system transformation strategies – such as early coal plant retirement, accelerated renewables deployment, grid and storage improvements, and/or the development and implementation of enabling policies.
What makes Kinetic Coalition’s energy transition credits “high-integrity”?
Kinetic Coalition energy transition credits will represent rigorously quantified and verified emissions reductions in electricity emissions.
Energy transition credits transacted by Kinetic Coalition will meet the following criteria:
- Apply appropriate tools to avoid emissions leakage;
- Meet high performance standards for demonstrating additionality;
- Represent actual impacts on emissions levels evidenced by scientific, up-to-date, conservative and reliable data;
- Enable ambitious host country just transition policies and targets;
- Utilize baselines to be set below business-as-usual and adjusted downward as necessary to support their compatibility with host country NDCs, Long-term Low Emission Development Strategies, and avoid crediting for or locking in levels of emissions that are incompatible with the long-term temperature goal of the Paris Agreement;
- Maintain consistency with Article 6 of the Paris Agreement, the Emission Unit Eligibility Criteria of CORSIA, and the Core Carbon Principles of the Integrity Council for the Voluntary Carbon Market (ICVCM); and,
- Represent reductions with demonstrable permanence.
Have any credits been issued to date?
No. With the groundwork in place, Kinetic Coalition is now focused on implementation. Our goal is at least one advanced market commitment and agreement of terms — between at least one project or program and Kinetic Coalition buyers — by the end of 2025.
