Green and Transition Solutions: Transition Credits

The Monetary Authority of Singapore (MAS) supports the growth of carbon credits markets in Singapore to channel financing towards carbon abatement and removal projects in Asia.

In September 2023, MAS launched a working paper on the generation of carbon credits from early decommissioning of coal-fired power plants – termed as “transition credits” – to support the development of market-based mechanisms that can scale the financing of managed phase-out of coal-fired power plants (CFPPs).

To further develop transition credits into a viable market solution, in December 2023, MAS launched the Transition Credits Coalition, or TRACTION, to identify system-wide barriers and develop solutions for transition credits to be utilised as a credible financing instrument.

The feasibility of integrating transition credits for early CFPP retirement will also be tested on two pilot projects in the Philippines, undertaken by ACEN Corporation and the Asian Development Bank.