SINGAPORE — Singapore is promoting a new type of financing that supports the early closure of coal-fired power plants in Southeast Asia, hoping to spur decarbonization in neighboring countries while also boosting the city-state's capital market.
Called a transition credit, it's based on the amount of carbon emissions reduced by the early shutdown of coal-fired plants. The Monetary Authority of Singapore, the financial regulator, is leading the initiative and is working with companies and financial institutions to establish the necessary systems.