Verra has launched a carbon credit methodology aimed at accelerating the early retirement of coal-fired power plants, enabling their replacement with new renewable energy projects while embedding social safeguards for affected workers and communities.
The newly introduced VM0052 methodology, titled Accelerated Retirement of Coal-Fired Power Plants Using a Just Transition, is part of the Verified Carbon Standard (VCS) programme. It provides a framework for quantifying emissions reductions by comparing the actual emissions saved from an early coal plant closure against what the facility would have produced over its expected operational lifespan.
Developed by the Coal to Clean Credit Initiative (CCCI) with support from The Rockefeller Foundation, the methodology ensures that emission reductions are only recognised when new renewable energy is added to the grid as a direct result of a plant’s early retirement—excluding pre-existing or already operational capacity.
“This methodology empowers energy providers to move away from coal in a way that avoids exacerbating energy poverty and ensures communities are not left behind,” said Mandy Rambharos, CEO of Verra. “It sets a new benchmark for how carbon finance can accelerate climate action while upholding principles of equity.”
A key feature of VM0052 is its grounding in just transition principles, mandating project developers to implement social protections such as local job creation, enhanced energy access, and other safeguards for communities affected by the shift away from coal.
The first version is tailored for use in regulated electricity markets and select deregulated markets. The updated second draft expands applicability through revised financial assessment tools, stronger social and environmental protections, and more robust criteria for project additionality and emissions baselining. It also incorporates new uncertainty analysis requirements aligned with the Core Carbon Principles outlined by the Integrity Council for the Voluntary Carbon Market (ICVCM).
By opening the door to transition finance, the methodology aims to mobilise climate investment at scale and redefine how coal-dependent economies shift towards cleaner, more inclusive energy systems.
