The Monetary Authority of Singapore published key insights from the Transition Credits Coalition (TRACTION)’s final report and issued a Statement of Support to advance the development and use of high-integrity energy transition credits as a financing mechanism for early coal plant retirement and replacement with cleaner energy sources in Asia. The final report sets out practical frameworks and solutions to operationalise and scale energy transition credits, building on TRACTION’s interim work on integrity, scalability and demand. It highlights that around a third of coal-fired power plants across 15 Asian markets could be eligible to generate such credits, representing about 1 GtCO2e of emissions reductions annually, but notes that success depends on addressing region-specific needs, including energy reliability, access and affordability. It also points to the need for predictable carbon revenues and risk-mitigation solutions, clearer demand signals from credible buyers, and financing structures that improve bankability, including approaches such as phased shutdowns through sequential closure of boiler units. The report positions Just Transition outcomes as central to credibility, with credit proceeds potentially supporting clean energy deployment, affordability measures and longer-term community development. Alongside the report, the Statement of Support has been joined by 21 public and private entities, including the Government of Singapore, expressing interest to participate in projects via offtake, financing and underwriting. TRACTION’s mandate is now complete, with the next phase focused on converting the foundational work into concrete projects and transactions led by partners including the Rockefeller Foundation and the Kinetic Coalition; the final report will be available on the MAS website on 12 November 2025 at 9:00 PM (SGT).
Monetary Authority of Singapore 2025-11-10
Monetary Authority of Singapore releases TRACTION final report insights and launches statement backing high-integrity energy transition credits
The Monetary Authority of Singapore shared insights from the Transition Credits Coalition's final report, promoting high-integrity energy transition credits for retiring coal plants in Asia. The report outlines frameworks to operationalize these credits, highlighting potential emissions reductions and the need for region-specific solutions. A Statement of Support, joined by 21 entities, signals interest in advancing projects, with the next phase focusing on concrete transactions.