Auction Parameters - Second Auction

  • The second auction will be a forward auction in which the strike price will be fixed and bidders will bid up the premium.
  • The strike price will be fixed at $3.50/ton
  • The auction budget will be $20 million
  • The starting price for the premium will be $0.06/ton of CO2 equivalent
  • The minimum bid will be for 200,000 tons of CO2 equivalent
  • The maximum bid will be 2,500,000 tons of CO2 equivalent
  • The Bid Deposit will be fixed at $0.06/ton
  • To become qualified to bid, firms will undergo an Integrity Due Diligence screening and pay the refundable deposit 
  • The auction clearing premium price and the auction winners will be made public on the PAF webpage
  • The auction will be held on May 12, 2016 

In order to participate in the second auction, interested parties will need to submit a Bidder Application Package on or before April 8, 2016. If you would like to receive the Bidder Application Package including the PAFERNS Draft Final Terms, please send an e-mail to The email must contain disclaimer language cut and pasted from this webpage.
Interested parties are also encouraged to review the second auction home page and the Bidders' Q&A.
Disclaimer: The information above is a summary and leaves out material information shared with interested parties in the Bidder Application Package and legal documentation that is expected to govern the PAFERNS.