Performance Payments (LINGO Incentives)

Contracts to forgo oil and gas extraction for a specified time (e.g. 10 years) can be signed between responsible governments and international creditors in exchange for debt forgiveness and annual payments. This approach could prevent up to 400 Gigatonnes of CO2 emissions at a cost of $2 to $10 per tonne and offer an alternative to fossil fuel-based economic development.

This allows avoiding extraction and emissions for a specified period of time, without the country having to give up ownership of the resource or definitely closing the option of extracting the resource in the future.

Resources :

•  West (2020) Compensating Indebted Countries for Keeping Fossil Fuels in the Ground, Boell Foundation. Background Paper, December 2020