JavaScript and Cookies need to be supported in order to use the website.

To be able to use all of the website & navigator's functions, download and install one of the following browsers:

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

Eligible countries and regions

All developing countries are eligible.

For its fourth auction, the PAF will accept emission reductions that comply with the eligibility criteria found here.

Eligibility criteria

A detailed description of the eligibility criteria and auction rules visit the PAF Website. The PAF can modify the eligibility criteria but it often takes into consideration the following factors: Emission Reductions Eligibility, Eligible Methodologies, Ineligible Methodologies (Adipic Acid), Eligible Countries, Eligible Generation / Issuance Period, Sub-Auctions &Abatement Project’s Operational Status before the Auction Date, Environmental, Health & Safety and Social Criteria (EHS), and Integrity Criteria.

Financial instruments

Equity

Information on how to...

Find relevant information about the auction here. The fourth acution will be held in the first half of 2020, to address methane abatement from landfill, animal waste, and wastewater sites. Availability of the Bidder Application Package will begin December 1, 2019 and the deadline will be mid-January 2020. Once available, the PAFERNs draft final terms and Bidder Application Package can be requested by sending an e-mail to PAF_Secretariat@worldbank.org

Climate objective

Mitigation

Sectors and themes

Forestry and Land-Use, Waste management

Type of support provider

Multilateral

Type of recipient

Private sector

Fund size

The three auctions allocate up to USD 54 million

Co-financing required

Application timeframe

Annual auctions

Trustee or administrator

World Bank

Contact information

http://www.pilotauctionfacility.org/

paf_secretariat@worldbank.org

You are here

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

Sign-up for the NDC Partnership monthly newsletter and receive updates on country work, upcoming events, resources, and more.