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.
Email PAF_Secretariat@worldbank.org with an email containing this disclaimer to obtain the third auction Application Package.
USD 100 million