Our Approach
Kinetic Coalition uses high-integrity energy transition credits to generate real emission reductions and drive funding for affordable and reliable clean energy systems.
Kinetic Coalition’s model is centered on using high-integrity energy transition credits to kickstart the move to clean power systems that deliver economic, health, and environmental benefits to local communities in emerging economies. The revenue stream created by these credits can be leveraged by host countries or asset owners to unlock some of the financing needed to implement their energy system transformation strategies.
Energy transition credits
Energy transition credits are a new type of carbon credit, with a specific focus on accelerating the transition to clean energy systems.
- Companies make advanced market commitments for energy transition credits
- The anticipated revenue stream created by these credits can be leveraged by host countries or asset owners to help unlock some of the upfront financing needed for the implementation of their energy system transformation strategies.
- Companies in return receive rigorously verified and quantified emissions reduction credits.
Facilitating transactions
Kinetic Coalition plays a three-part role regarding transactions:
1. Project identification
Working with partners, we identify asset-based energy transition projects and collaborate with emerging economies on generating energy transition credits across entire power sectors.
2. Opportunity validation
We vet these opportunities for our buyers to ensure they will produce high-integrity energy transition credits that:
- Represent real, additional, and permanent emission reductions and avoid leakage;
- Support economic, health, and environmental benefits in local communities;
- And provide reputational benefits to buyers.
3. Buyer–Seller facilitation
We match corporate buyers to sellers. We are not a broker, nor do we engage in negotiations directly. We are a neutral party that – in partnership with a financial intermediary and counterparties – facilitates price negotiations and provides other project management services.
Crediting methodologies
Accelerating investment in clean energy systems through energy transition credits is still in its early stages of development.
Kinetic Coalition is evaluating a variety of methodologies for potential use, ensuring they will result in real, additional, and permanent emission reductions that avoid leakage and support economic, health, and environmental benefits in local communities.
We are currently exploring the use of two energy transition credit methodologies:
Winrock International’s Environmental Resources Trust
Winrock International’s Environmental Resources Trust is developing the Standard for the Transformation of the Electric Power Sector (STEPS), an innovative sector-scale energy transition crediting standard aimed at facilitating full energy system modernization through a broad range of activities contributing to emissions reductions, such as early coal plant retirement, accelerated renewables deployment, and grid and storage improvements.
The Rockefeller Foundation’s Coal to Clean Credit Initiative (CCCI)
The Rockefeller Foundation’s Coal to Clean Credit Initiative (CCCI) has supported a new high-integrity asset-based methodology recently approved by the certification body Verra. It is geared towards unlocking market demand for energy transition credits that pairs the early closure of coal fired power plants with clean energy replacement while addressing the needs of vulnerable communities.
Upholding environmental integrity
Methodologies used by Kinetic Coalition must:
- Meet the Integrity Council for the Voluntary Carbon Market (ICVCM)’s Core Carbon Principles;
- Be consistent with the Article 6 crediting mechanism under the Paris Agreement, and;
- Be consistent with the Emission Unit Eligibility Criteria of CORSIA according to the International Civil Aviation Organization (ICAO)
In line with these standards, approved methodologies must include robust safeguards, such as:
- Appropriate tools to avoid emissions leakage
- Demonstrable additionality via scientific, up-to-date, conservative and reliable data to demonstrate actual impacts on emissions levels
- Verifiable permeance of emissions reductions
- Clear bridges to ambitious host country just transition policies and targets
Further considerations in project design are dedicated to alignment with country-specific strategies and goals spanning climate, energy, sustainable development, and other social and economic objectives.
Get in touch with our team to learn more about our approach.
