Pilot Auction Facility for Methane and Climate Change Mitigation (PAF)
The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) is an innovative, pay-for-performance mechanism developed by the World Bank Group to stimulate investment in projects that reduce greenhouse gas emissions while maximizing the impact of public funds and leveraging private sector financing.
The key objective of the PAF is to demonstrate a new, cost-effective, and results-based climate finance mechanism that incentivizes private sector investment and action on climate change in developing countries by providing a guaranteed floor price on emission reductions in the form of carbon credits.
In 2013, the G8 requested for innovative pay-for-performance approaches to addressing methane. A report by the Methane Finance Study Group supported the establishment of the facility. In its design and development phase, the facility benefited from the support of the Climate and Clean Air Coalition.
- The PAF auctions are supported by Germany, Sweden, Switzerland (through a joint contribution of the State Secretariat of Economic Affairs (SECO) and the Climate Cent Foundation), and the United States.
Find relevant information about the auction here. The fourth auction 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