5.1 What credits and methodologies are eligible for the fourth auction?
The fourth auction will target methane abatement from waste, wastewater, and agricultural waste projects qualified as Clean Development Mechanism Certified Emission Reductions (CERs), Verified Carbon Standard Verified Carbon Units (VCUs), or Gold Standard Verified Emission Reductions (VERs). Eligible methodologies are specified in the eligibility criteria. Projects using a combination of methodologies are also eligible, as long as one methodology is found on the eligibility list.
5.2 Which geographies are eligible for the fourth auction?
Emission reductions must occur within a list of countries specified in the eligibility criteria. If a project reduces emissions in multiple countries, all countries must be included on this list.
5.3 What are the eligibility requirements for the monitoring and issuance periods?
To redeem a put option, emission reductions must be generated between the auction date and December 31st, 2020, and issued after the July 1st, 2020. The eligible monitoring and issuance periods are specified in the eligibility criteria.
5.4 Will ERs from projects that are not yet registered be eligible?
Auction winners do not have to specify the projects that will source emission reductions at the time of the auction. It is at the time of redemption that the put option owner must identify the projects and demonstrate that these projects meet the eligibility criteria. However, the PAF does require that the project host site exist at the time of the auction.
5.5 What if my project has a monitoring period that starts before the PAF eligible period but continues to generate emission reductions during the PAF eligible period?
Emission reductions will not be accepted from projects with a monitoring period start date prior to the eligible monitoring period. Additional information on generation and issuance periods can be found in the eligibility criteria.
5.6 Will emission reductions from projects that have had previous purchase agreements with the World Bank or others be eligible?
Yes, and conversely, having had a previous purchase agreement with the World Bank will not be a pre-condition. However, projects with overlapping purchase agreements are not eligible.
5.7 If I have an existing buyer under contract for some, but not all, of my emission reductions, can I sell the remaining ERs to the PAF?
Yes. While some ERs may be under contract, the unencumbered ERs can be sold to the PAF.
5.8 Why are methodologies relating to the reduction of methane emissions from charcoal production, (ACM0021 and AM0041) absent from list of eligible methodologies?
The fourth 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 Designated Operational Entity (DOE) categorize all projects in one of these categories. Subsequent auction rounds may identify these or other methodologies and/or sectors as eligible.
5.9 Why are methodologies relating to the reduction of methane emissions from electricity and heat generation from biomass (ACM0006 and ACM0018) absent from the list of eligible methodologies?
For both of the listed methodologies, 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.
5.10 Why are methodologies relating to efficient cookstoves and clean cookstove technology absent from the list of eligible methodologies?
While the PAF recognizes that efficient cookstoves and clean cookstove technology could mitigate methane, the methodologies for these activities do not necessarily mitigate methane. Rather, these methodologies often focus on fossil fuel switch, which is not the focus of the fourth auction. For this reason, the PAF is unable to include these methodologies.
5.11 Why are methodologies relating to projects that process palm oil residue absent from the list of eligible methodologies?
Projects associated with Palm Oil processing have unique challenges and risks (see “The World Bank Group Framework and IFC Strategy for Engagement in the Palm Oil Sector”, March 2011). The World Bank Group is in the process of undertaking Country Situation Analysis in countries where a re-engagement in Palm Oil is envisaged. Once these analyses 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.
5.12 Is industrial waste water treatment from a palm oil processing plant 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.
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THE ABOVE 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).