Gold Standard and Sustainable Energy for All (SEforALL) have launched a world-first carbon market methodology designed to accelerate the phase-out of fossil fuel generators. The Joined-up Sustainable Transition (JUST) framework aims to unlock vital carbon finance for emerging markets, where businesses and communities often rely on a “shadow grid” of diesel and petrol generators due to unreliable central electricity supplies.
By allowing the replacement of these polluting units with renewable energy systems to generate carbon credits, the initiative addresses the significant upfront costs that have historically hindered the transition to green power. This methodology is specifically tailored for small-scale, distributed energy systems, targeting the estimated 350 to 500 gigawatts of diesel generation currently in operation across developing economies.
“Across many emerging markets, communities and businesses rely on fossil fuel generators because cleaner alternatives remain difficult to finance,” said Margaret Kim, Chief Executive Officer of Gold Standard. “As the first carbon market methodology designed to support a just transition at this dispersed scale, it helps make carbon finance accessible to those who need it most.”
The launch follows the recent publication of the JUST: Coal Decommissioning methodology on 12 March 2026, which focuses on the early retirement of large-scale coal plants. Together, these frameworks provide a comprehensive roadmap for phasing out fossil fuels across the entire energy spectrum, from national grids to individual backup generators.
Damilola Ogunbiyi, CEO of SEforALL and Special Representative of the UN Secretary-General, emphasised the importance of the shift: “Displacing fossil fuel generators is essential for ensuring energy security, supporting economic development and achieving net-zero emissions targets. This new methodology will go a long way in mobilising climate finance and catalysing the energy transition across the world.”
To qualify for credits, projects must provide verified proof of decommissioning and adhere to strict safeguards. These measures are designed to prevent emissions leakage and ensure a “just transition” that protects the livelihoods of workers and local communities as they shift toward sustainable power solutions.
