International auctioning of emission allowances (AAUs) | WWF

International auctioning of emission allowances (AAUs)

Posted on
25 November 2009
What is international auctioning of emission allowances?
Norway has proposed a mechanism for generating financing for climate change actions in developing countries through auctioning a portion of national emission permits, called AAUs.

Currently those countries with caps under the Kyoto Protocol are issued their entire allocation of AAUs free of charge.

Under Norway’s proposal, instead of receiving all the AAUs free of charge, these countries would have a certain percentage of their allocation held back by the UNFCCC, and sold in a public auction. The auction would occur at the international level before the AAUs are allocated to national registries, and would be handled by an international institution.

The resulting revenue would then be placed in a fund under the authority of the CoP to be accessed by developing countries for climate change actions.
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