Publication: The Potential for Climate Auctions as a Mechanism for NDC Implementation
Date
2018-12-10
ISSN
Published
2018-12-10
Author(s)
World Bank Group
Vivid Economics
Abstract
Climate auctions are an innovative
climate finance mechanism, with high potential to support
nationally determined contribution (NDC) implementation and
deepening through efficiently leveraging private investment.
The World Bank has developed the climate auction model
through the work of the Pilot Auction Facility for Methane
and Climate Change Mitigation (PAF). The PAF delivered
cost-effective methane and nitrous oxide abatement by
offering publicly-funded price guarantees for future climate
results to private sector companies that competed to buy the
price guarantees via an auction. This report proposes that
climate auctions may be an attractive option as part of a
transition towards the greater use of market-based
instruments to support NDC implementation and achieve more
ambitious climate results. The report reviews the broader
policy context and develops three implementation modalities
through which climate auctions can support NDC
implementation. The report also discusses when the model is
valuable and appropriate, reviewing the overarching
conditions for climate outcome opportunities to be suitable
for the use of climate auctions.
Citation
“World Bank Group; Vivid Economics. 2018. The Potential for Climate Auctions as a Mechanism for NDC Implementation; The Potential for Climate Auctions as a Mechanism for NDC Implementation. © World Bank, Washington, DC. http://openknowledge.worldbank.org/handle/10986/31058 License: CC BY 3.0 IGO.”