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Pilot Auction Facility for Methane and Climate Change Mitigation (PAF)

The Pilot Auction Facility (PAF) is an innovative climate finance mechanism designed to stimulate private investment in projects that reduce greenhouse gas emissions. The PAF consists of two key elements: the first, a tradable put option for emission reductions, provides option holders with the right but not the obligation to sell future emission reductions to the PAF at a predetermined price. The second element, an auction platform, provides a transparent means for allocating and determining the value of the options. The competitive nature of the auction reveals the minimum price required by the private sector to make emission reduction investments.

Support provider 
Germany, Sweden, Switzerland (through a joint contribution of the State Secretariat of Economic Affairs (SECO) and the Climate Cent Foundation), and the United States.
Purpose of support 
Project and program implementation
Steps to access  

Email PAF_Secretariat@worldbank.org with an email containing this disclaimer to obtain the third auction Application Package.

Climate objective 
Mitigation
Sectors and themes 
Forestry and Land-Use, Waste management
Type of support provider 
Multilateral
Type of recipient 
Private sector
Fund size 

USD 100 million

Co-financing required 
No
Application timeframe 

Annual auctions

Trustee or administrator 
World Bank
Contact information 
http://www.pilotauctionfacility.org/