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Stimulating Investment through the Pilot Auction Facility for Methane and Climate Change Mitigation

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Summary

The World Bank created the PAF as an innovative, pay-for-performance model to stimulate investment in projects that reduce greenhouse gas emissions while maximizing the impact of public funds and leveraging private sector financing. The PAF has demonstrated a cost-effective, results-based climate finance mechanism that incentivizes private sector investment and action on climate change in developing countries by guaranteeing a minimum price for carbon credits that represent emission reductions.

Partners

  • The World Bank

Global Methane Initiative (GMI)
Leading methane action since 2004