Singapore weighs novel carbon credits for coal phase-out in Asia

Emission problem: A coal-fired power plant in Cilegon, Indonesia. Singapore’s proposal intends to help reduce carbon emissions in South-East Asia. — AP

Singapore: Singapore’s central bank released a proposal on the issuance of novel carbon credits tied to the phase out of coal-fired power plants (CFPPs), a move to ramp up financing for energy transition projects in Asia.

The Monetary Authority of Singapore’s proposal is for a new asset class called “transition credits” whose sales can make up for the revenue shortfall associated with the early retirement of coal plants.