In 1992 many countries joined an international treaty, the 1992 United Nations Framework Convention on Climate Change (UNFCC) , as a framework for international cooperation to combat climate change by limiting average global temperature increases and the resulting climate change, and coping with impacts that were, by then, inevitable. After ratification of the UNFCCC treaty, Parties to the UNFCCC have met at conferences to discuss how to achieve the treaty's aims.

Climate-Smart PPP Policies and Legislation

PPP policies and legislation can lay down the guiding principles to ensure that a climate change impact analysis is undertaken during project development and that the identified issues and opportunities are reflected in the project design and implementation.

Examples on the country-level are the standard bidding documents and contracts developed for Argentina (RenovAr )

While tender schemes open up flexible and innovative design options (e.g. time blocks, storage components), the quality of the design and implementation is crucial to the success of competitive tenders. In Chile, an energy auction in November 2017 received the lowest price for solar in the region with 2.15 US cent/kWh after the tender process was amended in 2015 (Law 20,805) and a longer contract term (20 years) and different sized hourly blocks of energy supply (day, peak, night, 24 hours) were introduced.

Competitive solar tenders have decisively contributed to rapidly declining solar PV prices across the globe. In Saudi Arabia, an October 2017 auction resulted in a new record low for solar PV with one bid at 1.79 US cent/kWh. Solar prices are, however, not fully comparable because of country-specific factors and different parameters of each auction. Read more.