PAF-like mechanism for the oil and gas sector

The World Bank Group has developed the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) to offer a price guarantee for future emission reductions determined through a bidding process, and as such leverage private sector financing and ensure the efficient use of public funds for climate financing. Carbon Limits helped the World Bank assess the suitability for a PAF-like mechanism for emission reduction projects in the oil and gas sector. A large number of project categories in the flare and methane emission sectors were scoped to determine their emission reduction potential and appropriateness for a PAF-like mechanism.

More information about the project is available on the PAF’s website.

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