The Monetary Authority of Singapore (“MAS”) today released key insights  from the Transition Credits Coalition's (“TRACTION”)[1] Final Report, and published a Statement of Support for Energy Transition Credits  (“Statement”). These initiatives aim to advance the development and application of energy transition credits[2] as a credible financing mechanism to accelerate the coal to clean transition in Asia.

2.    TRACTION is a multi-stakeholder initiative convened by the MAS at COP28 that brings together over 30 partners. Contextualised to Asia, where coal plants continue to contribute to one-third of the region's greenhouse gas emissions, energy transition credits hold significant potential to mobilise capital for driving power sector decarbonisation and supporting Just Transition efforts. The Final Report outlines practical solutions and identifies key areas for further action to help the industry operationalise and scale the use of energy transition credits.

TRACTION Final Report

3.    TRACTION's Final Report builds on the earlier findings from its Interim Report , published at COP29, that examined the integrity, scalability and demand considerations for energy transition credits. Developed in collaboration with TRACTION members and industry partners, the Final Report details practical insights, frameworks and solutions to scale the application of energy transition credits across Asia.

4.    Key insights from the Final Report include:

a. Asia holds substantial potential for generating high-integrity energy transition credits, but success depends on addressing region-specific needs and ensuring energy reliability, access and affordability. A third of coal-fired power plants (“CFPPs”) across 15 Asian markets are potentially eligible to generate energy transition credits, representing around 1 GtCO₂e of emissions reductions annually[3]. To realise this potential, a whole-of-ecosystem partnership is needed. For instance, governments can improve market readiness by providing clarity through national energy plans and policies, while methodology developers can explore incorporating region-specific circumstances into integrity guardrails.

b. Scalability needs to be underpinned by predictable carbon revenues and robust risk-mitigation solutions. Clear demand signals from credible buyers and innovative financing structures are key to improving bankability and attracting financier participation. Alternative coal transition approaches, such as phased shutdown through sequential closure of boiler units to manage impact on energy reliability, can enhance project 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 energy transition credits can support Just Transition outcomes by:

i. accelerating clean energy deployment to ensure energy reliability and accessibility;

ii. maintaining energy affordability by bridging cost gaps, for example where renewables and battery storage are more expensive; and

iii. supporting community development beyond short-term compensation to build long-term community resilience through re-employment, upskilling and business support programmes.

d. Demand momentum for energy transition credits is growing, supported by structured participation pathways that help prospective buyers engage with confidence. Energy transition credits offer climate and socioeconomic impact, and can form a credible component of a buyer’s diversified carbon credit portfolio strategy. Mechanisms such as advanced market commitments and buyer coalitions can help aggregate demand, enable risk-sharing, lower due diligence costs, and send a clear offtake signal to support a pipeline of high-integrity projects.

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

Statement of Support for Energy Transition Credits

6.    Reflecting the growing momentum in this ecosystem, 21 public and private entities have joined in the Statement to participate in energy transition credit projects through offtake, financing and underwriting arrangements. This collective expression of interest from corporates, financial institutions, multilateral development banks, and sovereigns, including the Government of Singapore, provides plant owners and host governments with increased confidence to proceed with earlier coal retirement.

Charting the Next Phase

7.    The Final Report marks the completion of TRACTION’s mandate. The next phase will focus on translating TRACTION’s foundational work into concrete projects and transactions, with continued focus on integrity, transaction scalability and demand-building. This will be led by key partners such as the Rockefeller Foundation and the Kinetic Coalition. Given the complexity of Asia’s energy transition, the partnership of governments, financial institutions and development partners in different markets will be critical to build a robust pipeline of high-quality projects and realise the full potential of energy transition credits 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," said Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS. "Achieving scale and impact across Asia will take time and collective action from the ecosystem, given the unique characteristics in Asian markets. TRACTION's work demonstrates that energy transition credits can serve as a credible financing instrument to accelerate this transition, while ensuring it is inclusive and economically viable. MAS will continue to work closely with industry leaders, financiers and international partners to support the development of high-integrity energy transition credits to facilitate Asia’s transition.”

9.    “TRACTION has been a trailblazer in identifying the challenges and opportunities in scaling the early retirement of coal plants in Asia through high integrity transition credits. ICVCM welcomes the TRACTION Final Report that highlights the importance of upholding principles of high integrity and the centring of Just Transition in the consideration of transition credits. Alignment to principles of high integrity can both enhance the viability of transition projects and enhance buy-in from stakeholders. ICVCM will build upon the findings of the TRACTION Final Report in our ongoing Continuous Improvement Work Programme to develop recommendations on approaches to ensure high integrity in transition credits." – Amy Merrill, CEO, Integrity Council for the Voluntary Carbon Market (ICVCM)

10.    “A variety of financing instruments are needed to help countries achieve their goals to reduce emissions and develop more secure and sustainable energy systems. In this context, we support the continued development and testing of high-integrity transition credits as a market-based instrument – and we welcome the efforts of TRACTION to convene stakeholders around this goal. As these mechanisms evolve, it is essential that they are anchored in high-integrity principles and designed to safeguard energy security, as these are critical 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 list of TRACTION members and knowledge partners can be found in Annex A and organisations that have contributed box stories to TRACTION’s Final Report can be found in Annex B. For more information and the latest updates on Energy Transition Credits, please visit the MAS website .

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1.[1] MAS launched TRACTION in 2023 to identify system-wide barriers and solutions for transition credits to be utilised as a credible financing instrument to support the managed and equitable early retirement of coal plants. TRACTION comprises more than 30 members and knowledge partners from carbon credit services, energy financing, project development, risk management and non-governmental organisations.

1.[2] Energy transition credits, a concept first introduced in an MAS-led joint working paper in 2023, are high-integrity carbon credits generated from the emissions reduced by the early retirement of coal-fired power plants (“CFPPs”) and their replacement with cleaner energy sources.

1.[3] Based on the common integrity attributes identified in the Interim Report, drawn from across existing guidance and methodologies: (1) additionality; (2) permanence of emissions reductions and no leakage; (3) robust quantification and monitoring of emissions reductions; and (4) contributions to Just Transition and sustainable development goals. These are detailed in TRACTION’s Interim Report.