More structure needed before MAS’ proposed transition credits can fuel coal’s phase-out

IMAGINE you’re an investor in one of the 2,000 or so coal plants in South-east Asia.

The coal plant is still relatively young (the region has one of the youngest fleets of coal plants in the world), and you’ve got a power purchase agreement with the government to provide electricity for another 15 years. You’ve spent considerable sums of money building this plant, and that purchase agreement is how you’re going to make back your investment.

Asking you to retire your plant five years early would be asking you to take a loss, so there’s no way you’re going to do that.