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.
The fourth acution will be held in the first half of 2020, to address methane abatement from landfill, animal waste, and wastewater sites. Relevant information about the auction can be found here. 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
The three auctions allocate up to USD 54 million