Singapore’s central bank released a proposal on the issuance of novel carbon credits tied to the phase out of coal-fired power plants, 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. The credits could attract banks and other forms of private capital to transition financing, it said in a working paper produced with McKinsey & Co.

Up Next

Singapore Weighs Novel Carbon Credits for Coal Phaseout in Asia