Mitsubishi Corporation (Mitsubishi) and its wholly owned subsidiary, Diamond Generating Asia, Limited (DGA), have officially joined ACEN, GenZero, and Keppel Ltd. (Keppel) in a groundbreaking initiative aimed at accelerating the early retirement of a 246 MW coal-fired power plant in the Philippines. This pioneering collaboration leverages the emerging Transition Credits mechanism to support a just and sustainable energy transition.
Mitsubishi and DGA formalized their participation through the signing of a Deed of Accession to the Memorandum of Understanding (MOU) originally signed in 2024 by ACEN, GenZero, and Keppel. The original MOU was witnessed by Singapore’s Minister for Sustainability and the Environment, Ms. Grace Fu, and the Philippines’ Secretary for the Department of Environment and Natural Resources, Ms. Maria Antonia Yulo Loyzaga.
The joint initiative centers on the South Luzon Thermal Energy Corp. (SLTEC) coal plant, originally committed to be retired by 2040, years ahead of its 50-year technical lifespan, through the world’s first market-based Energy Transition Mechanism, spearheaded by ACEN. With Mitsubishi and DGA’s entry, the group is now working to explore accelerating the plant’s retirement to as early as 2030.
This potential collaboration not only aims to replace the SLTEC plant’s generation capacity with clean, reliable renewable energy but also seeks to establish a replicable model for coal transition globally. Transition Credits, a high-integrity form of carbon credits, are critical to this effort by helping make renewable replacement affordable while supporting impacted workers and communities.
“We are honored to join this landmark initiative with ACEN, GenZero, and Keppel, which represents one of the world’s first steps toward realizing a credible and scalable Transition Credits scheme,” said Shinichiro Suzuki, CEO of DGA. “What makes this project truly unique is not only the early retirement of a coal-fired power plant, but also its replacement with equivalent generation of new renewable energy—enhancing both the scale of clean energy deployment and the integrity of the carbon credits generated. For Mitsubishi and DGA, this initiative supports our deep commitment to decarbonisation and contributes to ongoing discussions on emission trading frameworks between the Philippines and Japan.”
Mitsubishi and DGA’s involvement is expected to expand access to the Japanese carbon market, advancing bilateral cooperation in emissions trading and reinforcing Japan’s role in global decarbonization efforts.
This collaboration reflects a shared commitment among leading regional and global partners to accelerate the energy transition through innovation, transparency, and collective action.
