The Potential For Climate Auctions as a Mechanism for NDC Implementation

Vivid Economics developed a guide that explores how climate auctions can support the cost-effective implementation and deepening of NDCs. We built on the experiences of the World Bank’s Pilot Auction Facility (PAF) for methane and climate change mitigation and created three climate auction modalities that support a broader policy transition towards the greater use and coverage of market-based instruments. We then developed theoretical conditions under which the application of the climate auctions model is valuable and appropriate to support climate outcome opportunities.