Pilot Auction Facility: Opportunities Beyond the Piloting Phase

This report, commissioned by the Pilot Auction Facility, aims to identify opportunities for achieving greenhouse gas (GHG) mitigation through the PAF’s climate auction model. The report aims to inform — but not solely determine — the PAF’s strategic decision-making process.

This report features two main sections:

• Description of design considerations for extending the PAF model to new areas of GHG mitigation, e.g. expanding from existing to new projects, applying alternative performance metrics, tailoring the auction format, and adapting the price guarantee design
• Sector assessment, including analysis on the suitability of the PAF model to six GHG emission sources (energy, industry, transport, buildings, non-combustion, forestry and land use) as well as four methane sub-sectors (wastewater treatment from palm oil, rice cultivation, enteric fermentation, and coal mine methane)

The report can also be downloaded from the World Bank Group website.