World Bank to hold $20m auction for carbon credits
The World Bank will hold a landmark US$20 million auction for carbon credits from projects designed to reduce greenhouse gas emissions, the bank said on Monday.
The auction is scheduled for 12 May and will offer up to 10 times the current market value.
Investment in low-carbon projects under United Nation’s initiatives has slowed as countries debate the framework of a new global climate agreement due to come into force in 2020.
The auction will cover projects that cut methane emissions which are viewed as highly potent with a global warming potential 25 times that of carbon dioxide.
The Pilot Auction Facility will offer tradable price guarantees of $3.50 per tonne for carbon dioxide emission reductions, compared with current prices of around $0.38.
The World Bank’s first auction, held in July last year, saw 12 winners securing $2.40 per credit for a total of 8.7 million credits.