On 26 September, Senior Managing Director Benjamin Chee, Senior Analyst Jane Kim, and Analysts Steven Li and Hannah Farrell will participate in the “Market-Based Approaches for Coal Transition” event co-hosted by the Monetary Authority of Singapore and the World Bank. This high-level event will bring together public and private sector representatives to highlight important strategic and technical considerations underpinning different approaches for facilitating an inclusive transition from coal.

The rapid decarbonization of the energy sector is key to keeping the world on a path to limit global temperature rise to 1.5°C. The scale of coal use for power generation and its carbon intensity means that rapid abatement of coal power plants is critical to averting the worst effects of climate change. Under current policies and regulations, coal is likely to remain a primary source of electricity generation in many emerging and developing economies through 2050. At the same time, meeting 1.5°C-aligned climate goals (as represented by IEA’s “Net Zero by 2050” scenario) requires advanced economies to phase out unabated coal power by 2030 and the rest of the world to do so by 2040.

The NERA team, led by Mr. Chee, will discuss the global coal power landscape, arguments for decommissioning coal power, key factors for assessing the coal-to-clean transition, a framework examining the potential role of auctions and key considerations in creating an attractive auction product, and items related to auction design and auction process implementation. The discussion will also include reflections on the use of auctions for climate results and on the possibilities for using the auction mechanism in future country or global engagements.