The Monetary Authority of Singapore (MAS) launched a public consultation on the detailed thresholds and criteria for financing the early phase-out of coal-fired power plants (CFPP) under the Singapore-Asia Taxonomy.
The inclusion of managed coal phase-out under the Singapore-Asia Taxonomy aims to provide a credible standard to increase participation in projects for the early retirement of CFPP that are aligned with a 1.5 degrees Celsius (1.5°C) transition pathway. The early phaseout of CFPP is critical to the energy transition of the Asia Pacific region, where coal accounts for nearly 60% of power generation and about a third of greenhouse gas emissions, and where CFPP have relatively long remaining lifespans.
The Singapore-Asia Taxonomy sets Technical Screening Criteria that apply to the CFPP facility, as well as to the CFPP owner. The Technical Screening Criteria are aligned to global science-based 1.5°C-aligned decarbonisation pathways and take into consideration other guidance including the ASEAN Taxonomy, and ‘The Managed Phaseout of High-Emitting Assets’ report by the Glasgow Financial Alliance for Net Zero. The managed phase-out process can be considered aligned with the Singapore-Asia Taxonomy if all the facility and entity-level criteria are met.
Some of the key criteria at the facility level are that the CFPP must:
Among the criteria at the entity level are that the CFPP owner must commit to:
Re-disseminated by The Asian Banker