Buyers' alliance
Kinetic Coalition includes a buyers’ alliance that supports businesses in purchasing high-integrity energy transition credits to reduce value chain emissions and provide catalytic capital to advance clean energy systems.
Our approach provides corporate buyers with the efficiencies, predictability, and confidence necessary to make these investments.
The investment supports emerging economies to unlock capital needed to advance affordable, reliable clean energy systems.
Working together
Kinetic Coalition is working with a range of businesses in our early-stage development to shape the initiative. Some of these companies include:
We are also collaborating with several host countries and asset owners to scope the use of energy transition credits in energy system transformation strategies.
High-integrity companies
To ensure the integrity and credibility of participating companies, Kinetic Coalition requires that corporate buyers:
- Publicly commit to science-based targets (SBTi) or equivalent quantified science-aligned targets consistent with limiting warming in line with the long-term temperature goal of the Paris Agreement;
- Publicly report a greenhouse gas emissions inventory;
- Develop and maintain a plan to meet the above-mentioned emissions reductions targets, and publicly report on progress towards achievement of targets;
- Separately publicly report any use of carbon credits, including purpose of use.
Going forward, Kinetic Coalition may also bring in sovereign buyers interested in purchasing high-integrity energy transition credits either as a means of results-based finance or to help meet their Nationally Determined Contributions under the Paris Agreement.
How can energy transition credits be used?
While Kinetic Coalition does not prescribe how companies may use energy transition credits toward their climate goals, we have identified several use cases that reflect emerging best practices in corporate climate mitigation.
These include scenarios for using our credits in a variety of ways, including: towards emissions from purchased electricity (Scope 2); towards emissions from electricity used by suppliers (upstream Scope 3); to offset a limited amount of unabated emissions; and to achieve emissions reductions beyond a climate mitigation target.
In line with our participation criteria, we encourage buyers to continue to prioritize direct action and investment to reduce emissions within their own value chains.
