The Monetary Authority of Singapore (MAS) has released key insights from the Transition Credits Coalition’s (TRACTION) Final Report, alongside a Statement of Support for Energy Transition Credits. These initiatives aim to promote energy transition credits as a viable financing mechanism to expedite the shift from coal to cleaner energy sources in Asia.
TRACTION, a multi-stakeholder initiative launched by MAS, involves over 30 partners and focuses on addressing the significant greenhouse gas emissions from coal plants in Asia. The Final Report offers practical solutions and identifies areas for further action to operationalise and scale energy transition credits. It builds on previous findings regarding the integrity and scalability of these credits, developed in collaboration with industry partners.
Key insights from the report highlight Asia’s substantial potential for generating high-integrity energy transition credits. A third of coal-fired power plants across 15 Asian markets could potentially generate these credits, representing around 1 gigatonne of CO₂ emissions reductions annually. The report emphasises the need for a whole-of-ecosystem partnership to realise this potential, including government support through clear energy policies and methodologies tailored to regional needs.
The report also stresses the importance of predictable carbon revenues and robust risk-mitigation solutions to enhance scalability. It suggests alternative approaches, such as phased shutdowns, to maintain energy reliability and stakeholder engagement. Furthermore, the report underscores the role of energy transition credits in supporting a Just Transition, ensuring energy accessibility and affordability whilst fostering community development.
The Statement of Support has garnered participation from 21 public and private entities, including the Government of Singapore, to engage in energy transition credit projects. This collective interest aims to boost confidence among plant owners and host governments for earlier coal retirement.
Looking ahead, the next phase will focus on translating TRACTION’s foundational work into concrete projects, with continued emphasis on integrity and scalability. Key partners, such as the Rockefeller Foundation and the Kinetic Coalition, will lead these efforts, aiming to build a robust pipeline of high-quality projects across Asia.
