MAS Shares Key Insights from TRACTION’s Final Report, Releases Statement of Support for Energy Transition Credit Development

To accelerate the coal to clean transition in Asia through the development and application of transition credits, the Monetary Authority of Singapore (“MAS“) on 10 November 2025 shared key insights from the Transition Credits Coalitions’ (“TRACTION“) Final Report on the Application of Energy Transition Credits for Accelerated Coal Retirement and its Replacement with Clean Energy (“Final Report“), and released a Statement of Support for Energy Transition Credits (“Statement“). The Final Report was made available on the MAS website on 12 November 2025.

By way of background, TRACTION is a multi-stakeholder initiative convened by MAS at COP28 in 2023 that brings together over 30 partners to identify system-wide barriers and develop solutions for transition credits to be utilised as a credible financing instrument. Contextualised to Asia, where coal-fired power plants (“CFPPs“) continue to contribute to one-third of the region’s greenhouse gas emissions, energy transition credits (“ETCs“) hold significant potential to mobilise capital for driving power sector decarbonisation and supporting Just Transition efforts.

Key Insights from the Final Report

The Final Report builds on an earlier interim report released during COP29 in 2024, and outlines practical solutions and identifies key areas for further action to help the industry operationalise and scale the use of ETCs. For more information on the interim report, please see our November 2024 NewsBytes article titled “Transition Credits Coalition (TRACTION) Highlights Integrity and Scalability of Transition Credits for Accelerating Coal Plant Retirements“.

1. Asia’s Potential: One-third of CFPPs in 15 markets could generate transition credits. This requires region-specific approaches and clear national energy plans.
   
   
2. Scalability & Bankability: It is critical to have predictable carbon revenues, strong demand signals, and innovative financing. Phased shutdown strategies can balance reliability and viability.
   
   
3. Just Transition: This is central to the credibility and long-term viability of early coal phaseout transactions in Asia. Proceeds from ETCs can support Just Transition outcomes by:

• • accelerating clean energy deployment to ensure energy reliability and accessibility;
  • maintaining energy affordability by bridging cost gaps, for example where renewables and battery storage are more expensive; and
  • supporting community development beyond short-term compensation.

4. Demand Momentum. Buyer coalitions and advanced commitments can aggregate demand, reduce costs, and signal offtake confidence.

The Final Report marks the completion of TRACTION’s mandate. Led by key partners such as the Rockefeller Foundation and the Kinetic Coalition, TRACTION’s 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.

Statement

MAS and the signatories to the Statement, which include Singapore’s Ministry of Trade and Industry and Philippines’ Department of Energy, express high-level support for developing high-integrity ETCs as a market-based solution to accelerate power sector decarbonisation, especially by retiring CFPPs early and replacing them with clean energy, with a focus on Asia. These include: (i) the purchase, trading or exchange of high-integrity ETCs to meet climate objectives; and/or (ii) the provision of capital, risk-sharing, or structuring expertise to enable credible transactions. The Statement affirms that “[W]here energy transition credits are intended for sovereign use or for compliance purposes, [the signatories] support alignment with Article 6 of the Paris Agreement, including meeting national eligibility criteria and having host country authorisations and corresponding adjustments (CAs) when required”.

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Click on the following link for more information:

• MAS Media Release titled “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 (available on the MAS website at mas.gov.sg)