If you are an interested bidder and have a question that is not addressed below or in other sections of the PAF website, please e-mail it to PAF_Secretariat@worldbank.org and it will be added here.
This page is for information only. Please see the disclaimer.
| A. Eligible emission reductions | |
|---|---|
| Question A.1 | Will emission reductions from projects that have had previous purchase agreements with the World Bank or others be eligible? |
| Yes, subject to the other conditions being met. Conversely, having had a previous purchase agreement with the World Bank will not be a pre-condition. | |
| Question A.2 | What is the minimum annual output required of an individual project? |
| The PAF will not impose rules on the size of the projects generating the emission reductions for which the put options will be exercised. | |
| Question A.3 | Will ERs from projects that are not [yet] registered be eligible? |
| Yes. | |
| Question A.4 | Will projects have to pass an additionality test? |
| Each auction will specify any rules for project additionality. In the first auction only CERs will be eligible, and thus projects must pass the CDM additionality test. Please view eligible emission reductions for the first auction with this link. | |
| Question A.5 | While methane will be reduced as an outcome, it is carbon credits that are required for the put option. Is it methane or carbon [dioxide] that is being reduced? |
| Carbon credits can be issued for methane reduction projects. Under the Kyoto Protocol, emission reductions are expressed in metric tons of carbon dioxide equivalent (MTCO2eq). Under existing CDM rules methane has a global warming potential of 25 times that of CO2. This means that 1 tonne of methane reduction will generate a 25 metric tonnes CO2 equivalent of Certified Emission Reductions. | |
| Question A.6 | I own a project and have an existing buyer under contract for some, but not all of my ERs. Can I sell the remaining to the PAF? |
| Yes.While some CERs of a project may be under contract, the unencumbered CERs can be sold to the PAF. | |
| Question A.7 | What are the eligible vintages of emission reductions in the first auction? Will already issued credits or credits issued from existing projects be redeemed with the PAF’s put options? |
| The eligible vintages of emission reductions for the first auction are specified in the eligibility criteria which can be viewed with this link. Future auctions may stipulate different criteria. | |
| Question A.8 | What kind of methane reducing projects are eligible in the first auction? Will methane avoidance projects also be eligible? |
| Eligible methodologies for the first auction are specified in the eligibility criteria which can be viewed with this link. Future auctions may stipulate different types of projects. | |
| Question A.9 | Will only UNFCCC registered projects be eligible in the first auction? |
| Yes, only Certified Emission Reductions will be eligible for the first auction. The full eligibility requirements for the first auction can be viewed with this link. Future auctions may stipulate different types of standards and registration status. | |
| Question A.10 | What if a landfill gas project is changed from flaring to electricity generation, will it be eligible? |
| Yes, so long as it uses an eligible methodology for the first auction as specified in the eligibility criteria which can be viewed with this link. Future auctions may stipulate different types of projects. | |
| Question A.11 | Which specific geographies will be eligible? |
| The eligible countries that can be the source of emission reductions for the first auction are specified in the eligibility criteria which can be viewed with this link. Future auctions may stipulate different countries. | |
| Question A.12 | For the first auction, will eligible credits come from exclusively the methane mitigation activities? |
| All of the CERs will be accepted from projects / PoA that use a combination of methodologies, as long as at least one of the methodologies of the registered project / PoA is an eligible methodology. | |
| Question A.13 | Are CERs generated from the agricultural waste of palm oil eligible in the first auction? If not, can you explain why? |
| As noted in the EHS and Integrity Criteria, CERs are not eligible from CDM projects or programs of activities where “palm oil related waste material is processed or otherwise utilized at the host or CDM site” are not eligible for the first auction. We refer interested parties to question F5 on the determination of the eligibility criteria for each auction. No decision has yet been taken with regard to their eligibility in subsequent auctions. | |
| Question A.14 | I have noted that methodologies that relate to the reduction of methane emissions from charcoal production, ACM0021 and AM0041 are absent from the list of eligible methodologies for the first auction. Can you explain why? |
| The first auction is targeting methane abatement from waste, waste water and agricultural waste projects. The targeting of these sectors is reflected in the EHS criteria which requires the DOE categorize all projects in one of these categories. Subsequent auction rounds may identify these or other methodologies and/or sectors as eligible. | |
| Question A.15 | Will credits issued from forestry projects be eligible? |
| No, the PAF will not include afforestation and reforestation projects. | |
| Question A.16 | Are projects registered both in CDM and Gold Standard accepted? |
| Yes, As long as the put option owner is able to deliver eligible CERs. | |
| Question A.17 | On the answer to question A.3 you confirmed that non yet registered project are eligible. Yet in Exhibit 2 to Annex A (4) to the Bond Terms document states existing waste water treatment facility are the only eligible ones. How should an interested party reconcile the two ? |
| As referenced in the PAFERNs Draft Final Terms, the host site must been built and/ or operational prior to the auction date. Meanwhile, CDM registration can take place after the host site has been built and / or is operational. A copy of the PAFERNs Draft Final Terms can be obtained by sending an e-mail to PAF_Secretariat@worldbank.org. The email must contain disclaimer language cut and pasted from this webpage. | |
| Question A.18 | I have noted that methodologies that relate to the reduction of methane emissions from electricity and heat generation from biomass, ACM0006 and ACM0018 are absent from the list of eligible methodologies for the first auction. Can you explain why? |
| The reason why these two methodologies are absent, is because for both the main source of baseline emissions comes from CO2 from heat and electricity generation, whereas methane emissions are not a mandatory part of the baseline. Each project participant makes his own decision to monitor the methane reductions. Consequently the use of these methodologies does not guarantee the reduction of methane. | |
| Question A.19 | Does the eligibly criteria that says that CERs must not be subject to a purchase agreement contract with a third party relate to a project developer selling his CERs to another company that is a PAFERN holder? |
| Eligible CERs must be unencumbered, meaning they are not eligible if they are delivered after a breach of contract with a third-party. This clause does not relate to purchase agreements between PAFERN holders and Project Participants. | |
| Question A.20 | Will the PAF publish a list of projects that currently align with the eligibility criteria? |
| No, the PAF will not publish a list of projects that currently align with the eligibility criteria. | |
| Question A.21 | Would industrial waste water treatment from a palm oil processing plant be eligible? |
| We refer interested parties to PS 6 in the EHS Criteria from CDM Projects at Existing Waste Water Treatment Facility Project Sites and at Existing Composting and Agricultural Waste Project Sites which says, “No palm oil related waste material is processed or otherwise utilized at the host or CDM site”. The determination of any individual project’s compliance with this requirement will be made by the DOE conducting the EHS & Integrity Audit. Interested parties may consider contacting a DOE to provide such guidance. | |
| Question A.22 | Why are projects which process Palm Oil residue not eligible to the PAF? |
| Projects associated with Palm Oil processing have unique challenges and risks (see “The World Bank Group (WBG) Framework and IFC Strategy for Engagement in the Palm Oil Sector”, March 2011). The WBG is in the process of undertaking Country Situation Analysis in countries where a re-engagement in Palm Oil is envisaged. Once these analysis are available and sufficient experience is accumulated, depending upon the findings, the PAF will re-consider including Palm Oil projects as eligible projects in subsequent auctions. | |
Disclaimer:
THE FOLLOWING IS A SUMMARY OF THE WORLD BANK’S PROPOSED PLAN TO ISSUE PILOT AUCTION FACILITY EMISSION REDUCTIONS NOTES (“PAFERNS”). IT IS NOT AN OFFER TO SELL PAFERNS OR AN INVITATION TO OFFER TO BUY PAFERNS. THIS SUMMARY IS SEPARATE FROM, AND SHOULD NOT BE READ IN COMBINATION WITH, ANY FUTURE OFFER OR SALE OF PAFERNS, WHICH WILL BE MADE IN COMPLIANCE WITH APPLICABLE LAWS AND UNDER ENTIRELY SEPARATE LEGAL DOCUMENTATION AND OFFERING MATERIALS. THIS SUMMARY IS VERY HIGH LEVEL FOR SIMPLICITY AND LEAVES OUT MATERIAL INFORMATION AND THE LEGAL DOCUMENTATION THAT IS EXPECTED TO GOVERN THE PAFERNS. FURTHER, IT IS CURRENT ONLY AS OF THE DATE OF POSTING TO THIS WEBSITE AND IS LIKELY TO BECOME OUTDATED AS THE PAFERNS LEGAL DOCUMENTATION IS DEVELOPED. THE STRUCTURE, TIMING AND MECHANICS OF THE ACTUAL PAFERNS, IF AND WHEN THEY ARE ISSUED, ARE SUBJECT TO CHANGE. POTENTIAL INVESTORS MUST OBTAIN A COPY OF THE COMPLETE LEGAL DOCUMENTATION PURSUANT TO WHICH THE PAFERNS WILL BE ISSUED, INCLUDING THE WORLD BANK’S MAY 2008 PROSPECTUS RELATING TO ITS GLOBAL DEBT ISSUANCE FACILITY AND THE FINAL TERMS FOR ANY ISSUANCE OF PAFERNS. POTENTIAL INVESTORS SHOULD NOT RELY ON THIS SUMMARY. BEFORE MAKING ANY INVESTMENT DECISION, POTENTIAL INVESTORS MUST REVIEW THE COMPLETE LEGAL DOCUMENTATION (ONCE AVAILABLE).
Last update -- June 10, 2015
