The Potential for Climate Auctions as a Mechanism for NDC Implementation

World Bank Group ; Vivid Economics

World Bank, Washington, DC

关键词: CLIMATE CHANGE;    CLIMATE AUCTIONS;    CARBON POLICY;    CARBON PRICING;    CARBON TRADING;   

RP-ID  :  132826

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Climate auctions are an innovativeclimate finance mechanism, with high potential to supportnationally determined contribution (NDC) implementation anddeepening through efficiently leveraging private investment.The World Bank has developed the climate auction modelthrough the work of the Pilot Auction Facility for Methaneand Climate Change Mitigation (PAF). The PAF deliveredcost-effective methane and nitrous oxide abatement byoffering publicly-funded price guarantees for future climateresults to private sector companies that competed to buy theprice guarantees via an auction. This report proposes thatclimate auctions may be an attractive option as part of atransition towards the greater use of market-basedinstruments to support NDC implementation and achieve moreambitious climate results. The report reviews the broaderpolicy context and develops three implementation modalitiesthrough which climate auctions can support NDCimplementation. The report also discusses when the model isvaluable and appropriate, reviewing the overarchingconditions for climate outcome opportunities to be suitablefor the use of climate auctions.