This methodology supports a Just Transition through the simultaneous actions of closure of coal-fired power plants and the installation of renewable energy power plants in a way which does not hinder access to energy and is fair and inclusive for all stakeholders.
Globally, coal fired thermal power plants are the major source of base power supply. However, they are equally the largest source of GHG emissions, accounting for approximately 10 billion tCO2e of the total 55.3 billion tCO2e released annually. Continuation of coal fired thermal power plants is therefore a considerable setback to the concerted global climate action and to the efforts to keep the Earth’s warming to within 1.5ºC, compared to that of the pre-industrial time. To limit warming to 2ºC or below, and without new builds, existing coal fired power plants will need to retire 10 to 25 years earlier than the historical average operating lifetime.