By Caroline Valetkevitch and Harry Robertson
NEW YORK/LONDON, May 19 (Reuters) - Major U.S. stock indexes fell as U.S. bond yields rose again on Tuesday, while oil prices eased after U.S. President Donald Trump said he paused a planned attack on Iran and referred to a "good chance" for a nuclear deal.
Trump said on Monday he had halted a planned resumption of attacks against Iran to allow time for negotiations to take place on a deal to end the war, after Tehran sent a new peace proposal to Washington.
He subsequently said there was a "very good chance" the U.S. could reach an agreement with Iran to prevent Tehran from obtaining a nuclear weapon.
Yields on U.S. Treasuries moved higher. The 10-year yield had climbed as high as 4.659% on Monday, which was its highest level in 15 months.
The focus for investors right now is on rising yields, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
"We're seeing the long end of the market continues to rise," he said. "That is the reason why we're seeing (stocks) on the defensive, and why what would have been good news is somewhat being ignored," Cardillo said, referring to Trump's comments on a halt to planned Iran attacks.
The Nasdaq led declines on Wall Street. The all-important artificial intelligence trade will be tested by earnings from chipmaker Nvidia that are due on Wednesday, with expectations sky-high for the world's most valuable company.
The Dow Jones Industrial Average fell 170.38 points, or 0.34%, to 49,515.42, the S&P 500 fell 47.16 points, or 0.63%, to 7,356.14 and the Nasdaq Composite fell 255.26 points, or 0.98%, to 25,835.47.
MSCI's gauge of stocks across the globe fell 6.07 points, or 0.55%, to 1,092.16.
European stocks were higher, however, further recovering ground lost on Friday when they dropped 1.5% as bond market jitters spread to equities.
Stocks in Europe, which is a net importer of energy and has fewer major tech firms, remain below pre-war levels and have lagged far behind their U.S. peers.
The pan-European STOXX 600 index rose 0.3%.
U.S. crude fell 0.52% to $108.09 a barrel and Brent fell to $110.26 per barrel, down 1.64% on the day.
U.S. YIELDS UP AGAIN
U.S. Treasury yields rose as worries remain about a lasting inflationary shock from the Iran war.
The yield on benchmark U.S. 10-year notes rose 4.6 basis points to 4.669%, from 4.623% late on Monday. Yields move inversely to prices.
British bond yields fell after news reports said the most likely challenger to Prime Minister Keir Starmer will not overhaul the country's borrowing rules.
https://finance.yahoo.com/markets/articles/asian-shares-mixed-bonds-recover-012931456.html
By Tsvetana Paraskova - May 19, 2026, 3:00 PM CDT
The second energy crisis in four years is further eroding Europe’s industrial competitiveness as energy costs are spiking again and undermining the European ambition to compete with the United States and China to attract AI and data center developments.
Energy costs in Europe are so much higher than in the U.S. or Asia, and the grid stability is so fragile and in dire need of modernization and upgrades that many European countries are out of the competition for hosting new data/AI centers. In addition, Europe’s already congested grid means new connections could take up to 10 years in some places to hook up to the grid. Ten years is a millennium in the AI world, where advances are measured in days.
Europe’s Energy Costs Surge
Europe started losing competitiveness as early as in 2022, when the energy crisis following the Russian invasion of Ukraine hiked gas and power costs. After two years of relative stability in prices – still at levels much higher than before the crisis – the new energy crisis is raising European energy costs again.
The energy-intensive industries in Europe are once again hamstrung by the spike in gas and electricity prices. Developers of energy-intensive data centers and AI infrastructure are looking at power costs and inflationary pressures, as well as geography, when they pick areas to position their new developments. And Europe is rarely the first choice.
Electricity prices are going up globally, due to the return to demand in developed economies after years of stagnation, but the prices in Europe exceed those in the U.S. or China, by a mile.
Last year, before any indication that the Strait of Hormuz could be closed for months, electricity prices for energy?intensive industries in the European Union remained elevated, the International Energy Agency (IEA) said in its annual Electricity 2026 report earlier this year.
EU electricity prices again averaged over twice U.S. levels and nearly 50% above those in China, similar to 2024, adding competitive pressure to the bloc’s energy?intensive industries, the IEA said weeks before the Iran war began.
The average EU wholesale price in 2025 was up by some 10% year over year to about $95/MWh, in line with the 9% increase in the Title Transfer Facility (TTF) natural gas price at the trading hub in the Netherlands. Average EU wholesale electricity price remained the highest among the markets the IEA analyzed in 2025 – roughly twice that of the United States and India, and markedly above levels in Australia (65% higher) and Japan (25% higher). Higher gas prices in Europe put upward pressure on power futures in 2025.
Power prices spiked again this year, after the Middle East crisis and the sudden disappearance of about 20% of global LNG flows led to another major surge in gas and electricity prices in Europe.
The European Commission is scrambling to implement plans to further de-couple power prices from gas prices. But the reality amid the worst oil and gas market disruption ever is that Europe’s power prices are closely connected to the gas prices and despite the surge in renewables, wholesale power prices remain much higher compared to the U.S. and China—the key competitors in the AI race.
US Leads Global Data Center Power Demand
Currently, data centers consume about 2% of the world’s electricity, up from 1.7% in 2024 and 1.9% in the middle of 2025, the International Data Center Authority (IDCA) said in a reportearlier this month.
The U.S. is by far the world’s largest data center location, with 43% of global consumption. Data centers consume about 6% of the nation’s electricity.
The U.S. is followed by China, at 8.5 GW data centers consuming 0.8 percent of the nation’s electricity. Germany, the EU’s biggest economy, follows at 5.5 GW, but consumes a massive 9.5% of the nation’s electricity.
Higher energy prices in Germany, as well as in the UK, could discourage new data center developers.
Europe is losing the AI race on three key fronts, Chris Seiple, vice chairman of Wood Mackenzie’s power and renewables division, told CNBC.
“One is the cost of energy, two is the geographic location of the companies developing data centers, and three is the speed to market – the amount of time it takes to build the infrastructure and get connected.”
Moreover, the cost of securing data center capacity in Europe’s five largest markets – the so-called FLAPD markets (Frankfurt, London, Amsterdam, Dublin and Paris) – is set to jump by an average of 12% in 2026, driven by supply constraints and increasing development costs, new research from CBRE showed last week.
“Larger, more technically complex data centres require advanced cooling systems and higher-specification infrastructure, which significantly increases build costs,” commented Kevin Restivo, Director, European Data Centre Research at CBRE.
“As demand for these environments grows and availability tightens, providers are increasingly passing these costs on to customers.”
Not all of Europe is equal in terms of access to power markets and energy costs. Analysts note the relative advantage of the Nordic markets – Norway, Sweden, and Denmark – as well as France, where electricity costs are not as high as in the rest of Europe. The Nordics have large hydropower and other renewable energy electricity generation, while France is a European leader in nuclear power generation. That means that gas plays little to no role in the power system and pricing mechanisms, largely insulating these markets from spikes in fossil fuel prices.
https://oilprice.com/Energy/Energy-General/Europe-Is-Losing-The-AI-Race-as-Energy-Costs-Soar.html
India’s increase of Rs 3.91 per litre in the prices of petrol and diesel announced this week, works out to 4.4 per cent, which is the smallest hike of any major economy outside the directly subsidising Gulf producers such as Saudi Arabia, according to figures compiled by GlobalPetrolPrices.com.
An Indian Oil official pointed out that the Rs 3.91 increase, which restores only part of the rise in crude prices, has been undertaken after 76 days of complete absorption of costs by the public sector oil companies. In sharp contrast, the rest of the world has been adjusting prices for the rise in crude costs through increases ranging from 10 to 90 per cent in the retail prices of the two fuels.
The pass-through has been steepest in liberalised emerging markets directly exposed to West Asian supply and freight, where governments do not absorb volatility. Myanmar, Malaysia, Pakistan, and the United Arab Emirates have all seen petrol move up by more than half the pre-war price, with diesel rising even more sharply because of its closer link to global trade and freight. The Pakistani consumer is paying about 55 per cent more for petrol today than three months ago, the Malaysian about 56 per cent more, and the Emirati consumers about 52 per cent higher prices, the figures show.
In the advanced economies, the increases are smaller in percentage terms but still substantial. American petrol prices, which respond quickly to crude because federal and state excise loadings are modest, have risen by close to 45 per cent and diesel by 48 per cent. In Europe, where excise duties dampen the swing, the United Kingdom is up about 19 per cent on petrol and 34 per cent on diesel, Germany about 14 per cent on petrol and 20 per cent on diesel, and France about 21 per cent and 30 per cent respectively. In the case of Japan, South Korea, and Singapore, the hike in petrol prices has been held below 20 per cent. The price of diesel has risen considerably faster, with Singapore registering a 65 per cent jump.
In India’s case, the Rs 3.91 per litre increase has helped reduce the daily losses that the government-owned oil companies were incurring due to the skyrocketing cost of imported crude, from Rs 1,000 crore a day to Rs 750 crore. The retail increase in fuel prices has resulted in cutting losses by only 25 per cent, the Indian Oil official said.
“India is the visible exception as until 15th May 2026 the public sector oil marketing companies held petrol and diesel prices essentially unchanged from their 23rd February 2026 levels, absorbing the cost of crude at refinery gate and accumulating daily under-recoveries of around Rs 1,000 crore,” he added.
India’s state fuel traders raised retail prices for the second time in less than a week, as they seek to cushion the blow to margins from soaring crude prices while the war in the Middle East drags on with no resolution in sight.
Retail fuel prices in the country were hiked by the equivalent of $0.0093 per litre, Reuters reported. This is a third of last week’s price hike, which was the first in four years, highlighting the pain that the world’s third-largest crude oil importer is experiencing because of the developments in the Middle East.
The Economic Times reported earlier this month that wholesale fuel prices had surged in April, with gasoline prices up by 32.4% and diesel prices up by 25.19%. That’s up from a monthly rise of 2.5% for gasoline in March, and 3.62% for diesel.
Since the war in the Middle East began and cut off over 40% of India’s crude oil flows, those that passed through the Strait of Hormuz, one of the highest-flying economies in Asia has seen its oil import bill soar, investors fleeing the capital market, and the local currency plunging to an all-time low against the U.S. dollar. The squeeze in energy supply has been particularly acute in liquefied petroleum gas, but the oil crunch has also affected India’s economy.
As a result, the world's third-largest crude importer saw its wholesale inflation jump to 8.3% in April from a year earlier, significantly accelerating from 3.88% annual inflation in March. Meanwhile, the United States again extended a sanction waiver on Russian crude for India, in acknowledgment of the difficult supply situation resulting from military action against Iran.
The Indian government, meanwhile, is urging people to travel less in order to conserve energy or use public transport and carpooling. India has 69 days’ worth of crude oil stocks and 45 days of LPG supply, according to the country’s oil minister.
By Irina Slav for Oilprice.com
Pollution from coal-fired power plants that can block sunlight is significantly cutting global solar output, and potentially causing an overestimation of climate progress, according to a new study.
Aerosols — tiny particles released from the burning of fossil fuels as well as natural sources like volcanoes — reduced global solar generation by 5.8% in 2023, researchers from the University of Oxford and University College London said in a study published in Nature Sustainability Friday. That’s equivalent to about 111 terawatt-hours of electricity, which is on par with the annual power generation of 18 medium-sized coal plants.
The effect is most pronounced when solar facilities are located next to coal plants. In China, the world’s largest producer of solar power and coal, aerosols slashed photovoltaic output by 7.7%, with scientists attributing nearly a third of the decline to coal-fired power plants. Aerosols also cut solar output in India, the US and Japan.
“When people make energy transition projections, they estimate solar electricity generation and translate that directly into climate benefits or avoided warming,” said Rui Song, a postdoctoral researcher at Oxford and the report’s lead author. “What our study shows is that there’s a risk we may be overestimating the climate benefits of solar if we do not get pollution from coal power under control.”
The findings also suggest that the logistical advantages of co-locating solar farms next to coal-fired plants — which can enable developers to quickly plug into grid connections and high-capacity transmission lines — come with a downside and can significantly curtail solar capacity.
Solar, wind and other renewables made up 34% of global electricity generation last year, overtaking coal’s 33% share for the first time since 1919, when worldwide power demand was only a fraction of current levels, energy think tank Ember said in a report last month. Despite that progress, coal remains a critical part of the energy mix, particularly in many growing economies including China, India and Southeast Asia.
At the same time, solar generation is emerging as a cheap, locally produced source of clean energy that can help shield nations from the impact of fossil fuel price spikes and volatility.
Pakistan’s rapid adoption of solar over the past few years will save the country at least $6.3 billion this year by reducing the need for oil and gas purchases, a March analysis by Renewables First and the Centre for Research on Energy and Clean Air found. But the Oxford study found aerosols — which can also originate from vehicle emissions and industrial processes like brick kilns — curbed the nation’s solar output by 15.1% in 2023.
Photograph: Solar panels in India; source: Sumit Dayal/Bloomberg
https://www.insurancejournal.com/news/international/2026/05/19/870504.htm
Grains
OMAHA (DTN) -- Posted 10:30 -- July corn is down 3/4 cent per bushel, July soybeans are up 3/4 cent, July KC wheat is up 3 cents, July Chicago wheat is up 5 1/4 cents and MIAX July Minneapolis wheat is up 1 3/4 cents. The Dow Jones Industrial Average is down 259.89 points. The U.S. Dollar Index is up 0.210 and July crude oil is down $0.98 per barrel. June gold is down $55.10 per ounce. Corn, soybeans and soy products are little changed while wheat is trading higher on worsening crop ratings. The trade is low volume.
Posted 08:34 -- July corn is down 3/4 cent per bushel, July soybeans are up 2 1/4 cents, July KC wheat is up 3/4 cent, July Chicago wheat is down 3/4 cent and MIAX July Minneapolis wheat is up 3 3/4 cents. The Dow Jones Industrial Average is down 347.01 points. The U.S. Dollar Index is up 0.160 and July crude oil is up $0.03 per barrel. June gold is down $76.20 per ounce. Grain and soy markets are mixed early Tuesday with beans and soymeal a bit higher in slow trade. Optimism over the China trade agreement drove markets on Monday, but traders will need to see some confirmation of Chinese demand. The winter wheat crop appears to be getting even smaller with the good-to-excellent rating called the lowest for mid-May in 37 years. Early yields and test weight in Texas and Oklahoma are reported to be poor.
Livestock
Posted 11:32 -- August live cattle are up $0.28 at $247.425, August feeder cattle are up $3.80 at $362.65, June lean hogs are down $0.35 at $98.175, July corn is down 2 cents per bushel and July soybean meal is down $2.40. The Dow Jones Industrial Average is down 152.68 points and the NASDAQ is down 224.43 points. The livestock complex is again trading mixed into Tuesday's noon hour as the cattle contracts rally on the hope that fundamental support will strengthen later this week, meanwhile the lean hog contracts are trading lower. Still nothing has developed in the cash market.
https://www.dtnpf.com/agriculture/web/ag/news/article/2026/05/19/periodic-updates-grains-livestock
Gold prices were largely steady on Tuesday, as investors took a breather after recent volatility while focusing on developments surrounding the Middle East conflict after U.S. President Donald Trump paused a planned attack against Iran.
Spot gold fell 0.1% to $4,560.39 per ounce by 0228 GMT, after hitting its lowest level since March 30 on Monday. U.S. gold futures for June delivery gained 0.1% to $4,563.50.
"The general kind of theme around the markets today is the dust is settling from Friday and markets are kind of trying to figure out where they go next as they look to this event risk midweek," said Ilya Spivak, head of global macro at Tastylive, referring to the minutes of the Federal Reserve's April meeting.
Investors expect the minutes, due on Wednesday, to offer fresh clues on the U.S. central bank's monetary policy path.
Gold prices extended fall on Monday from the session before to hit a more than one-month low, as mounting inflation fears triggered a rout in the global bond market. Bullion later in the day recovered to close slightly higher.
U.S. President Donald Trump said on Monday he had paused a planned attack against Iran to allow for negotiations to take place on a deal to end the U.S.-Israeli war, after Iran sent a new peace proposal to Washington.
Oil prices fell more than 2%, easing some inflation fears. Gold is considered a hedge against inflation, though higher interest rates tend to weigh on the non-yielding metal. [O/R]
Kevin Warsh will be sworn in as Fed chief on Friday by Trump, a White House official said on Monday, putting the financier at the helm of the central bank as it grapples with intensifying inflation that may make it hard to push through the interest-rate cuts Trump desires.
Spot silver fell 1.3% to $76.63 per ounce, platinum lost 0.5% to $1,969.84, and palladium dropped 1.2% to $1,401.74.
Agnico Eagle Mines Ltd. AEM-T is forging ahead with the construction of the Hope Bay gold mine in the Arctic, resurrecting a highly strategic Canadian mining project that ran into operational problems under previous ownership.
Toronto-based Agnico acquired the mine in 2021 after the Canadian federal government blocked China’s Shandong Gold Mining Co. Ltd. from acquiring it from its then-owner, TMAC Resources Inc., owing to national security concerns.
The project is situated in Hope Bay, Nunavut, near tidewater in the Northwest Passage, a highly strategic shipping route connecting the Atlantic Ocean to the Pacific.
The mine originally went into production in 2017, but TMAC grappled with operational issues, including a poorly-performing mill, and was forced to sell itself when doubts arose about its ability to service its debt.
Agnico in an announcement on Tuesday said that its recently completed preliminary economic assessment points to annual gold production at Hope Bay of more than 400,000 ounces over 11 years.
It estimated the capital cost for the underground mine at US$2.4-billion, with first production targeted for 2030. The expenditures will include the rebuilding of the processing facility, the addition of a diesel generator plant for power, and roughly 33 kilometres in underground development.
Agnico in recent years has emerged as the marquee player in Canadian gold mining. It is by far Canada’s biggest gold producer, and it is the world’s second-biggest gold company by market value, bypassing Toronto-based Barrick Mining Corp. a few years ago.
Josh Wolfson, analyst with RBC Dominion Securities, said in a note to clients on Tuesday that the economics for the Hope Bay mine are in line with what Agnico had earlier indicated.
Mr. Wolfson said that Hope Bay will be a key part of Agnico’s production growth target of between 20 and 30 per cent over the next decade.
Agnico over the years has made several well-time acquisitions that have helped grow its production and reserves. About a month ago, it unveiled three acquisitions in one day worth roughly $3.8-billion that will see it grow its presence in Finland significantly. It also acquired Kirkland Lake Gold Ltd. in 2022, and Yamana Gold Inc.’s gold properties in 2023.
Zambia's state-operated investment company, ZCCM Investments Holdings, has initiated a new gold-focused joint venture with the goal of uncovering new mineral wealth in Zambia's northwest in a daring attempt to expand its mining footprint beyond copper.
The move reflects Zambia's increasing desire to diversify a mining sector that has long been dominated by copper, a metal that has supported a large portion of the nation's economy for many years.
ZCCM, via a statement, noted that Kyalo Goldfields Limited (KGL), a new company established on May 6, for evaluating and developing gold resources in the Kikonge Mining Area of Zambia's North-Western Province, would play a pivotal role in this new scheme.
The investment firm disclosed that KGL will facilitate the formalization of artisanal and small-scale mining operations within the region to guarantee the secure and regulated extraction of gold.
Furthermore, as seen on Reuters, KGL will establish processing infrastructure to increase value retention within the Southern African country.
"Kikonge is a meaningful step in broadening ZCCM-IH's diversified minerals portfolio and represents tangible progress in delivering on our mandate to formalise and develop Zambia's gold sector," ZCCM-IH CEO Kakenenwa Muyangwa said.
ZCCM-IH will keep a controlling 51% ownership in the company, while its partner, known for harvesting and processing tin, tantalum, and tungsten in the adjacent Democratic Republic of the Congo, would possess the remaining portion.
The announcement comes as Zambia seeks greater domestic ownership of its mineral industry, reflecting a broader trend across Africa in which governments desire a larger part of mining income.
According to ZCCM-IH, KGL's operations will be initially financed by shareholder contributions, with other structures being examined as it progresses.
"Upon completion of this process, the company will have clarity on the investment amount," it said.
Just last week, ZCCM-IH Chief Executive Kakenenwa Muyangwa disclosed that the business is looking into ways to raise its interest in existing mining assets, within its borders, but only through commercial agreements, not forced acquisitions.
The new offer has increased by $10 compared to last week
U.S. steel producer Nucor has once again raised its spot price (CSP) for hot-rolled coil—by $10 per short ton compared to the previous week. This was announced in a letter the company sent to its customers on May 18.
Thus, the new offer price stands at $1,090/ton.
At the same time, the CSP for the joint venture California Steel Industries (CSI) will also increase by $10 per short ton—to $1,140/ton.
Delivery times remain at 3 to 5 weeks.
According to SMU, as of May 12, the average spot price for HRC in the U.S. market on FOB (east of the Rockies) terms was $1,080 per short ton, up $5/ton from the previous week.
According to Kallanish estimates, domestic prices for hot-rolled coil in the United States rose by $10 per short ton last week, reaching a new range of $1,060–1,080/ton.
As a reminder, hot-rolled coil offers in the U.S. market rose by 2.9% in April to $1,163/ton ex-works (North America)—the highest level since early 2024. Last month, this market remained one of the strongest. The main driver of growth was regular price hikes by Nucor, which gradually pushed prices higher.
Currently, strong domestic demand and a shortage of spot volumes are keeping the U.S. market on an upward trend.
https://gmk.center/en/news/nucor-raises-hrc-price-to-1-090-per-ton/
The US government has finalized a 3.7% countervailing duty, or CVD, on POSCO's plate products, adding to the export burden on South Korea's steel industry.
Industry officials said on May 19 that the US Commerce Department on May 14 finalized a 3.7% countervailing duty rate on POSCO's carbon and alloy steel cut-to-length plate products. The measure applies to shipments exported to the US in 2023. The same rate will apply to group affiliates including POSCO Holdings and POSCO Future M.
A countervailing duty is imposed when authorities determine that a product gained price competitiveness through government subsidies or similar support. The US has objected to South Korea's industrial electricity pricing system and its Korea Emissions Trading Scheme, or K-ETS, arguing that they amount to de facto subsidies. On that basis, Washington imposed a 0.87% countervailing duty on Korean plate exports for 2021 shipments and a 1.47% rate for 2022 shipments, raising the rate each year.
The Commerce Department made the latest decision while it remains in a legal dispute with POSCO. POSCO and the South Korean government filed suit at the US Court of International Trade in February 2024, challenging the department's countervailing duties. A POSCO official said the company would continue to respond diligently in upcoming reviews and work to secure a reasonable adjustment in the tariff rate.
The ruling adds to cost pressures for South Korea's steelmakers, which are already struggling with a construction downturn and an influx of low-priced Chinese steel. The tougher US protectionist stance is worsening export conditions for Korean steel producers. Industry officials have also raised the possibility that the Commerce Department could impose countervailing duties on shipments exported in 2024 and later. The US has applied a 50% tariff on South Korean steel since June 2025.
Shin Jeong-eun, Hankyung.com reporter, newyearis@hankyung.com
The International Energy Agency (IEA) has published a detailed assessment of how a novel category of carbon market instruments, known as transition credits, could help Southeast Asian countries reduce their dependence on coal-fired power, while warning that major design and demand challenges remain unresolved.
The report, titled Financing the Modernisation of Power Systems Beyond Coal: The Role of Transition Credits in Southeast Asia, published in May 2026 and supported by the Rockefeller Foundation and GenZero, examines the region’s coal landscape from power system, investment, and carbon market perspectives.
Transition credits are carbon credits issued for verified emissions reductions in the power sector, generated through early retirement of coal plants paired with clean energy replacement, or through system-level reductions in grid emissions intensity.
Southeast Asia’s coal problem is acute. Around 80% of coal plants across developing Asia are under 20 years old, and if operated at current rates for their full technical lifetimes, they would emit more than 280 gigatonnes of carbon dioxide (CO2) through to 2100, equivalent to over 20 times China’s current annual energy-related emissions.
Electricity demand in the region is projected to grow by around 60% between 2026 and 2035, ensuring coal remains central to energy security for years to come.
The picture has grown more complicated in 2026. Conflict in the Middle East has driven extreme volatility in Asian liquefied natural gas (LNG) markets, prompting the Philippines to declare a state of energy emergency and several countries to lean more heavily on coal, even as governments maintain long-term phasedown commitments.
The IEA’s Announced Pledges Scenario estimates Southeast Asia requires around $20 billion per year in coal-related power investment through 2050, with 70% directed toward solar and wind.
The report identifies carbon leakage, additionality, and a shortage of committed demand as the central challenges.
Compliance carbon markets offer the strongest near-term demand potential, with stakeholder consultations suggesting transition credits could price between $14 and $45 per tonne of CO2 equivalent (CO2e).
Overall, the IEA recommends governments treat transition credits as a complementary revenue stream within broader financing packages, rather than a standalone solution.
