Green and Transition Solutions: Transition Credits

Transition credits are high-quality carbon credits generated from emissions reductions from the early retirement of coal-fired power plants (CFPPs) and their replacement with clean energy, providing a market-based financing mechanism for the managed phase-out of CFPPs.

MAS launched the Transition Credits Coalition (TRACTION) to develop solutions for transition credits to be used as a credible financing instrument, with a pilot underway in the Philippines. The first generation is expected to cut 3 million tonnes of emissions annually.

At Ecosperity 2025, Verra launched the first transition credit methodology [VM0052] for early CFFP retirements, while the Rockefeller Foundation announced support for up to 60 projects.

At COP29, TRACTION released interim findings with design principles and safeguards. At COP30, TRACTION launched its final report, providing a roadmap to scale transition credits globally.

Accelerating the phase-out of coal-fired power plants.