MAS publishes TRACTION’s final report and launches support statement for energy transition credits

27 November 2025

On 12 November 2025, the Monetary Authority of Singapore (“MAS”) published the final report of the Transition Credits Coalition (“TRACTION”) (“Final Report”). This follows the release of MAS’ key insights from the Final Report and publication of a Statement of Support for Energy Transition Credits (“Statement”) on 10 November 2025. These initiatives aim to advance the development and application of energy transition credits as a credible financing mechanism to accelerate the coal to clean transition in Asia.

TRACTION is a multi-stakeholder initiative convened by MAS at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28). 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.

TRACTION Final Report

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. For more on the Interim Report, please read our article “MAS’ Transition Credits Coalition (TRACTION) outlines integrity, scalability, and demand considerations in utilising transition credits to accelerate early retirement of coal-fired power plants”.

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. Some key insights from the Final Report are set out below:

  • 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. To realise this potential, a whole-of-ecosystem partnership is needed, e.g. 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.
  • 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.
  • 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, e.g. 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.
  • 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.

Statement of Support for Energy Transition Credits

Twenty-one 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

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.

Reference materials

The following materials are available on the MAS website www.mas.gov.sg:

For more information and the latest updates on Energy Transition Credits, please visit this webpage on the MAS website www.mas.gov.sg.