6.1 What are the Environmental Health & Safety and Integrity Criteria?
A put option holder intending to redeem with the PAF must submit an independent inspection report that confirms that the project from which the emission reductions will be sourced meets the Environmental Health & Safety (EHS) and Integrity Criteria. The criteria and corresponding inspection are identical for all projects in a given sector (i.e. landfill, wastewater, composting and agricultural waste).
6.2 Is the EHS Audit Report required once per project or every year?
The EHS Audit Report must be completed based on up to date information no more than 608 days prior to the Maturity Date. When released, the second auction bond terms will govern the EHS rules. Additional information can be found in the Draft Final Terms, which 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.
6.3 Who will be responsible for the EHS report and how long will it take for DOEs and project participants to approve the EHS? Will any other additional reports be needed?
The EHS report will be the responsibility of the put option holder. The report can be produced by any accredited DOE. The PAF estimates that it will take no more than a few days for a DOE to complete the report. This may be performed in conjunction with the verification site visit. Project participants may contract the same DOE for the verification and the production of the EHS report. No additional report will be needed.
6.4 What role does the PAF expect the DNA to play in the EHS and Integrity process?
The PAF engages DNAs to support outreach efforts in their countries to make project entities aware of the PAF auctions. DNAs will not have a role in the EHS and Integrity process.
6.5 Is the stakeholder consultation as required by the EHS in addition to the normal CDM stakeholder consultation at the start of the CDM project? And who pays for the consultation?
Yes, this is in addition to CDM stakeholder consultation. The consultation is organized by CDM project developer, in consultation with the host site operator. The put option holder or project developer will contract the EHS auditor who is to lead the consultation. No payments or per diems are allowed for stakeholder participants.
6.6 I see that there is some flexibility to use the same vintages of emission reductions (CERs, VCUs, or VERs) with different maturity dates of the PAFERNs (i.e., use different ERs from a single ER issuance for two maturity dates). If I use ERs from the same issuance for two maturities, do I need to have a fresh Verification Report and EHS Inspection Report?
Eligible ERs can be used for different maturity dates or redemptions from the same ER issuance so long as they meet the eligibility requirements for that maturity date in terms of their issuance date and monitoring period start date. In the case where the ERs from the same issuance are used for a subsequent maturity, another Verification is not required. A second EHS Inspection Report would not be required so long as there was an EHS Inspection Report completed for the same project less than 608 days prior to the maturity date. If the original EHS Inspection Report that was used when the ERs were first delivered from the same issuance was dated more than 608 days from the maturity date, then a new EHS Inspection Report would need to be completed. In other words, the EHS Inspection Report is linked to a project, and not to a particular verification report for that project. For additional information, see Question 2.5.
6.7 If a put option holder plans to redeem his option using emission reductions from a project that fails to obtain a passing EHS report because of issues highlighted at the stakeholder consultation, is the put option holder refunded the put option premium?
No, the premium will not be refunded.
6.8 Is it intended that the scope of the stakeholder consultation includes all activities of the host site (e.g. the entire landfill) or is the scope limited to the project site?
The stakeholder consultation pertains to both the host site and the project site. Please see the Stakeholder Meeting Guidance Note.
If your question is not answered on these pages, please send an email to paf_secretariat@worldbank.org.
This page is for information only. Please see the 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).
