MAS-backed coalition unveils framework for coal phase-out

It highlights the need to align with Just Transition principles and sustainable development goals.

The Transition Credits Coalition (TRACTION), an initiative launched by the Monetary Authority of Singapore, has released an interim report outlining a framework for using transition credits to accelerate the early retirement of coal-fired power plants.

Central to the report is the establishment of rigorous standards to ensure the credibility of transition credits. These include demonstrating additionality and ensuring permanence by committing to no new coal projects and replacing retired coal capacity with clean energy.

The report stresses the importance of robust verification and monitoring to uphold the integrity of emissions data. It also highlights the need to align credit initiatives with Just Transition principles and sustainable development goals.

The report identifies three key buyer segments—compliance, voluntary, and investment markets—noting that voluntary buyers often seek credits tied to their regional decarbonisation goals. In its next phase, TRACTION plans to tailor approaches to meet the specific needs of these segments and expand the buyer base.

To address risks and encourage large-scale adoption, the coalition recommends tools such as carbon credits insurance and advance market commitments. These measures aim to mitigate uncertainties like project delays, ensuring a smoother transition for both buyers and project developers.

As the coalition prepares to present its final recommendations at COP30, it seeks to refine these methodologies and build broader stakeholder consensus around the proposed standards.

The report calls on global leaders and industry players to recognise transition credits as a scalable, impactful solution to the urgent challenge of phasing out coal. By combining financial incentives with robust oversight, the coalition aims to drive investment in cleaner energy whilst ensuring the transition remains economically viable and socially responsible.