MAS Releases Key Insights from the Transition Credits Coalition (TRACTION)’s Final Report and Launches Statement of Support for the Development of High-Integrity Energy Transition Credits

Singapore, 10 November 2025… The Monetary Authority of Singapore (“MAS”) at this time launched key insights from the Transition Credits Coalition’s (“TRACTION”)MAS launched TRACTION in 2023 to determine system-wide boundaries and options for transition credit to be utilised as a reputable financing instrument to assist the managed and equitable early retirement of coal crops. TRACTION includes greater than 30 members and information companions from carbon credit score companies, power financing, challenge growth, threat administration and non-governmental organisations. Final Report, and printed a Statement of Support for Energy Transition Credits (“Statement”). These initiatives goal to advance the event and utility of power transition creditEnergy transition credit, an idea first launched in an MAS-led joint working paper in 2023, are high-integrity carbon credit generated from the emissions lowered by the early retirement of coal-fired energy crops (“CFPPs”) and their substitute with cleaner power sources. as a reputable financing mechanism to speed up the coal to scrub transition in Asia.

2. TRACTION is a multi-stakeholder initiative convened by the MAS at COP28 that brings collectively over 30 companions. Contextualised to Asia, the place coal crops proceed to contribute to one-third of the area’s greenhouse fuel emissions, power transition credit maintain vital potential to mobilise capital for driving energy sector decarbonisation and supporting Just Transition efforts. The Final Report outlines sensible options and identifies key areas for additional motion to assist the trade operationalise and scale the usage of power transition credit.

TRACTION Final Report

3. TRACTION’s Final Report builds on the sooner findings from its Interim Report , printed at COP29, that examined the integrity, scalability and demand concerns for power transition credit. Developed in collaboration with TRACTION members and trade companions, the Final Report particulars sensible insights, frameworks and options to scale the appliance of power transition credit throughout Asia.

4. Key insights from the Final Report embrace:

a. Asia holds substantial potential for producing high-integrity power transition credit, however success depends upon addressing region-specific wants and making certain power reliability, entry and affordability. A 3rd of coal-fired energy crops (“CFPPs”) throughout 15 Asian markets are probably eligible to generate power transition credit, representing round 1 GtCO₂e of emissions reductions yearlyBased on the frequent integrity attributes recognized within the Interim Report, drawn from throughout current steering and methodologies: (1) additionality; (2) permanence of emissions reductions and no leakage; (3) sturdy quantification and monitoring of emissions reductions; and (4) contributions to Just Transition and sustainable growth objectives. These are detailed in TRACTION’s Interim Report.. To realise this potential, a whole-of-ecosystem partnership is required. For occasion, governments can enhance market readiness by offering readability via nationwide power plans and insurance policies, whereas methodology builders can discover incorporating region-specific circumstances into integrity guardrails.

b. Scalability must be underpinned by predictable carbon revenues and sturdy risk-mitigation options. Clear demand indicators from credible consumers and modern financing buildings are key to bettering bankability and attracting financier participation. Alternative coal transition approaches, resembling phased shutdown via sequential closure of boiler items to handle affect on power reliability, can improve challenge viability and stakeholder buy-in.

c. A Just Transition is central to the credibility and long-term viability of early coal phaseout transactions in Asia. Proceeds from power transition credit can assist Just Transition outcomes by:

i. accelerating clear power deployment to make sure power reliability and accessibility;

ii. sustaining power affordability by bridging value gaps, for instance the place renewables and battery storage are dearer; and

iii. supporting group growth past short-term compensation to construct long-term group resilience via re-employment, upskilling and enterprise assist programmes.

d. Demand momentum for power transition credit is rising, supported by structured participation pathways that assist potential consumers interact with confidence. Energy transition credit supply local weather and socioeconomic affect, and may type a reputable part of a purchaser’s diversified carbon credit score portfolio technique. Mechanisms resembling superior market commitments and purchaser coalitions will help mixture demand, allow risk-sharing, decrease due diligence prices, and ship a transparent offtake sign to assist a pipeline of high-integrity initiatives.

5. TRACTION’s Final Report will probably be accessible on the MAS website on 12 November 2025, 9:00 PM (SGT).

Statement of Support for Energy Transition Credits

6. Reflecting the rising momentum on this ecosystem, 21 private and non-private entities have joined within the Statement to take part in power transition credit score initiatives via offtake, financing and underwriting preparations. This collective expression of curiosity from corporates, monetary establishments, multilateral growth banks, and sovereigns, together with the Government of Singapore, offers plant homeowners and host governments with elevated confidence to proceed with earlier coal retirement.

Charting the Next Phase

7. The Final Report marks the completion of TRACTION’s mandate. The subsequent part will concentrate on translating TRACTION’s foundational work into concrete initiatives and transactions, with continued concentrate on integrity, transaction scalability and demand-building. This will probably be led by key companions such because the Rockefeller Foundation and the Kinetic Coalition. Given the complexity of Asia’s power transition, the partnership of governments, monetary establishments and growth companions in several markets will probably be vital to construct a strong pipeline of high-quality initiatives and realise the complete potential of power transition credit over time.

8. “The case for Asia’s coal-to-clean transition remains compelling, with the potential to strengthen energy access, affordability and reliability for local communities,” stated Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS. “Achieving scale and affect throughout Asia will take time and collective motion from the ecosystem, given the distinctive traits in Asian markets. TRACTION’s work demonstrates that power transition credit can function a reputable financing instrument to speed up this transition, whereas making certain it’s inclusive and economically viable. MAS will proceed to work carefully with trade leaders, financiers and worldwide companions to assist the event of high-integrity power transition credit to facilitate Asia’s transition.”

9. “TRACTION has been a trailblazer in figuring out the challenges and alternatives in scaling the early retirement of coal crops in Asia via excessive integrity transition credit. ICVCM welcomes the TRACTION Final Report that highlights the significance of upholding rules of excessive integrity and the centring of Just Transition within the consideration of transition credit. Alignment to rules of excessive integrity can each improve the viability of transition initiatives and improve buy-in from stakeholders. ICVCM will construct upon the findings of the TRACTION Final Report in our ongoing Continuous Improvement Work Programme to develop suggestions on approaches to make sure excessive integrity in transition credit.” – Amy Merrill, CEO, Integrity Council for the Voluntary Carbon Market (ICVCM)

10. “Quite a lot of financing devices are wanted to assist international locations obtain their objectives to scale back emissions and develop safer and sustainable power methods. In this context, we assist the continued growth and testing of high-integrity transition credit as a market-based instrument – and we welcome the efforts of TRACTION to convene stakeholders round this objective. As these mechanisms evolve, it’s important that they’re anchored in high-integrity rules and designed to safeguard power safety, as these are vital priorities.” – Tim Gould, Chief Energy Economist, International Energy Agency

11. “TRACTION has helped lead the way on establishing the integrity, scalability, and demand for energy transition credits, and initiatives like Kinetic Coalition can further advance that work to help deliver abundant, affordable, clean energy systems around the world. The demand for clean energy around the world is real and growing. It’s essential we drive investment towards real solutions that transform energy systems and benefit local communities. Energy transition credits can provide a credible pathway for companies and governments to scale that investment.” – Nat Keohane, President of C2ES, which leads Kinetic Coalition

12. “High-integrity Transition credits are a way to empower communities and countries to make the best energy decisions for their people’s well-being. They unlock new possibilities for communities to thrive with abundant, affordable, and reliable power and bring a diversity of investors to the table. We’re grateful to partner with the Monetary Authority of Singapore and TRACTION to pioneer this approach, where prosperity is powered by clean energy for all.” – Elizabeth Yee, Executive Vice President of Programs, The Rockefeller Foundation.

13. “Transition credits can serve as an important lever to accelerate Asia’s shift from coal to clean energy, provided they are designed and implemented with integrity. When grounded in high environmental and social standards, they offer a pathway to ensure a just and inclusive transition for communities. WWF-Singapore welcomes the TRACTION initiative as a vital step towards responsible coal phase-out, through the collective action of all ecosystem stakeholders, including NGOs and local communities.” – Vivek Kumar, CEO, World Wide Fund for Nature (WWF) Singapore

14. The listing of TRACTION members and information companions will be present in Annex A and organisations which have contributed field tales to TRACTION’s Final Report will be present in Annex B. For extra info and the newest updates on Energy Transition Credits, please go to the MAS web site .

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