Climate Auctions : A Market-Based Approach to National Climate Action

With the Paris Agreement and most of its detailed rulebook now finalized, countries and subnational actors face the challenge of translating climate targets and strategies into action and determining how to finance these actions. Through the Pilot...

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Main Author: World Bank Group
Format: Policy Note
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/480311550853018431/Climate-Auctions-A-Market-Based-Approach-to-National-Climate-Action
http://hdl.handle.net/10986/31322
id okr-10986-31322
recordtype oai_dc
spelling okr-10986-313222021-05-25T09:21:52Z Climate Auctions : A Market-Based Approach to National Climate Action World Bank Group CLIMATE CHANGE CARBON PRICING NATIONALLY DETERMINED CONTRIBUTION NDCs GREENHOUSE GAS EMISSIONS CLIMATE AUCTIONS CLIMATE CHANGE MITIGATION CLEAN DEVELOPMENT MECHANISM ABATEMENT POLICIES CARBON DIOXIDE EMISSIONS CARBON POLICY With the Paris Agreement and most of its detailed rulebook now finalized, countries and subnational actors face the challenge of translating climate targets and strategies into action and determining how to finance these actions. Through the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF), the World Bank developed an innovative financial mechanism – climate auctions – which stimulates private investment in projects that reduce greenhouse gas emissions. Climate auctions offer price guarantees to companies that can deliver eligible climate results in the future. These price guarantees are allocated through a transparent, efficient auctioning process, which maximizes the climate impact of scarce public funds. In the near-term, countries can utilize climate auctions to spur significant investments in low-carbon activities and mobilize finance at the scale and pace necessary to achieve their national climate targets, laying the groundwork for longer-term carbon pricing and greater climate ambition. This policy brief is intended to inform policymakers and public funders about why climate auctions are an effective tool for achieving climate outcomes, focusing on how policymakers can utilize auctions to accelerate NDC implementation and raise climate ambition. It also outlines how climate auctions work and where they are most effective. The policy brief was produced by staff of the World Bank with external contributions from the Rocky Mountain Institute. 2019-02-25T17:44:31Z 2019-02-25T17:44:31Z 2019 Policy Note http://documents.worldbank.org/curated/en/480311550853018431/Climate-Auctions-A-Market-Based-Approach-to-National-Climate-Action http://hdl.handle.net/10986/31322 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Policy Notes Economic & Sector Work
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CLIMATE CHANGE
CARBON PRICING
NATIONALLY DETERMINED CONTRIBUTION
NDCs
GREENHOUSE GAS EMISSIONS
CLIMATE AUCTIONS
CLIMATE CHANGE MITIGATION
CLEAN DEVELOPMENT MECHANISM
ABATEMENT POLICIES
CARBON DIOXIDE EMISSIONS
CARBON POLICY
spellingShingle CLIMATE CHANGE
CARBON PRICING
NATIONALLY DETERMINED CONTRIBUTION
NDCs
GREENHOUSE GAS EMISSIONS
CLIMATE AUCTIONS
CLIMATE CHANGE MITIGATION
CLEAN DEVELOPMENT MECHANISM
ABATEMENT POLICIES
CARBON DIOXIDE EMISSIONS
CARBON POLICY
World Bank Group
Climate Auctions : A Market-Based Approach to National Climate Action
description With the Paris Agreement and most of its detailed rulebook now finalized, countries and subnational actors face the challenge of translating climate targets and strategies into action and determining how to finance these actions. Through the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF), the World Bank developed an innovative financial mechanism – climate auctions – which stimulates private investment in projects that reduce greenhouse gas emissions. Climate auctions offer price guarantees to companies that can deliver eligible climate results in the future. These price guarantees are allocated through a transparent, efficient auctioning process, which maximizes the climate impact of scarce public funds. In the near-term, countries can utilize climate auctions to spur significant investments in low-carbon activities and mobilize finance at the scale and pace necessary to achieve their national climate targets, laying the groundwork for longer-term carbon pricing and greater climate ambition. This policy brief is intended to inform policymakers and public funders about why climate auctions are an effective tool for achieving climate outcomes, focusing on how policymakers can utilize auctions to accelerate NDC implementation and raise climate ambition. It also outlines how climate auctions work and where they are most effective. The policy brief was produced by staff of the World Bank with external contributions from the Rocky Mountain Institute.
format Policy Note
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Climate Auctions : A Market-Based Approach to National Climate Action
title_short Climate Auctions : A Market-Based Approach to National Climate Action
title_full Climate Auctions : A Market-Based Approach to National Climate Action
title_fullStr Climate Auctions : A Market-Based Approach to National Climate Action
title_full_unstemmed Climate Auctions : A Market-Based Approach to National Climate Action
title_sort climate auctions : a market-based approach to national climate action
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/480311550853018431/Climate-Auctions-A-Market-Based-Approach-to-National-Climate-Action
http://hdl.handle.net/10986/31322
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