World Bank holds first methane auction

The World Bank has held its first methane-reducing auction, where it is piloting the idea of paying businesses that capture and reuse the gas.

This first round focuses on reducing methane emissions from landfills, wastewater treatment plants and agriculture.

In the online auction, 12 of 28 bidders won, ranging from multinationals to small, local businesses.

Winners receive a price guarantee based on performance, and how much methane they capture and reuse. They are paid with carbon credits, which can be used or traded, after independent auditors verify emission reductions on the ground.

The US, Germany, Sweden, Switzerland together are contributing over $50 million for the methane auctions and the World Bank is aiming to fundraise to double that.

A recent World Bank report stated that getting prices and incentives right is crucial for successfully getting emissions to zero by 2100.