ESG & Investing

New Tool to Shutter Asia’s Coal Plants Is Gaining Momentum

  • Transition credits could be effective at around $25-$35: DBS
  • Region seeking to offset lost revenue from early retirements

A stacker-reclaimer at a stockpile of coal at a plant in Tuticorin, India.

Photographer: Prashanth Vishwanathan/Bloomberg
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Lenders to power producers see momentum building in development of a novel form of carbon credits intended to advance the phase out of coal-fired power capacity.

Entities including the Monetary Authority of Singapore have advocated the introduction of transition credits, the sales of which would help offset a shortfall in revenue from power assets that are shuttered ahead of schedule.