Fourth Auction - Eligibility Criteria

For its fourth auction, the PAF will accept emission reductions that comply with the following eligibility criteria:

  1.         Emission Reductions Eligibility
  2.         Eligible Methodologies
  3.         Eligible Countries
  4.         Eligible Generation / Issuance Period
  5.         Environmental, Health & Safety and Social Criteria (EHS), and Integrity Criteria

A.  Certified Emission Reductions Eligibility

To be eligible to exercise the put option, a qualified emission reduction (ER) must satisfy all of these six criteria at the time of exercise:

  • Be a CDM Certified Emission Reduction (CER), a Verified Carbon Standard (VCS) Verified Carbon Unit (VCU), or a Gold Standard Verified Emission Reduction (VER)
  • Not be subject to a purchase agreement contract with a third-party
  • Originate from a project or program of activities that uses at least one of the methodologies listed in the eligible methodologies table
  • Originate from a project or program of activities in a host country or countries listed in the eligible countries table
  • Have a CDM, VCS or GS Issued Date and a Monitoring Period that are compliant with the Eligible Generation / Issuance Periods 
  • Be accompanied by a passing Environmental, Health & Safety and Social (EHS), and Integrity report from the project or program of activities from which it originated

B.  Eligible Methodologies

The emission reductions must be Certified Emission Reductions (CERs), Verified Carbon Standard (VCS) Verified Carbon Units (VCU), or Gold Standard Verified Emission Reductions, from a project or program of activities that uses at least one of the methodologies listed in the table below. Projects using a combination of methodologies are also eligible as long as at least one of them is included in the table below:

CDM Methodologies
AM0002  AM0003  AM0006  AM0010  AM0011  AM0013  AM0016 
AM0022  AM0025  AM0057  AM0069  AM0073  AM0080  AM0083 
AM0093  AM0112  ACM0001  ACM0010  ACM0014  ACM0022  ACM0024 
AMS-III.D.  AMS-III.E  AMS-III.F.  AMS-III.G  AMS-III.H  AMS-III.I.  AMS-III.L 
AMS-III.O  AMS-III.R  AMS-III.Y.  AMS-III.AF.  AMS-III.AO  AMS III.AU  AMS III.AX. 
VCS Methodologies
VMR0003
Gold Standard Methodologies
Revised consolidated baseline methodology for GHG emission reductions from manure management systems and municipal solid waste, v.1.0

C.  Eligible Countries

The emission reduction must originate from a CDM, VCS or GS project or program of activities that has all of its host countries listed in the Eligible Countries table below:

Afghanistan  Egypt  Malawi  Serbia 
Albania El Salvador  Malaysia Seychelles 
Algeria  Equatorial Guinea  Maldives  Sierra Leone 
Angola  Eritrea  Mali  Solomon Islands
Antigua and Barbuda Ethiopia  Marshall Islands  Somalia 
Argentina  Fiji  Mauritania  South Africa 
Armenia  Gabon  Mauritius  South Sudan 
Azerbaijan  Gambia, The  Mexico  Sri Lanka 
Bangladesh  Georgia Micronesia Sudan 
Belize Ghana  Moldova  Suriname 
Benin  Grenada Mongolia Swaziland 
Bhutan  Guatemala  Montenegro Syria 
Bolivia  Guinea  Morocco  Tajikistan 
Bosnia and Herzegovina Guinea-Bissau  Mozambique  Tanzania 
Botswana  Guyana  Myanmar Thailand 
Brazil  Haiti  Namibia  Timor-Leste
Burkina Faso Honduras Nepal  Togo 
Burundi  India  Nicaragua  Tonga 
Cambodia  Indonesia  Niger  Trinidad and Tobago 
Cameroon  Iran  Nigeria  Tunisia 
Cape Verde  Iraq  Pakistan  Turkmenistan
Central African Republic Jamaica Palau  Tuvalu
Chad  Jordan  Panama  Uganda 
Chile  Kazakhstan Papua New Guinea  Uruguay 
Colombia  Kenya  Paraguay  Uzbekistan 
Comoros  Kiribati   Peru  Vanuatu 
Congo, Dem Rep of Kyrgyzstan  Philippines  Venezuela 
Congo, Rep of Laos  Rwanda  Vietnam 
Costa Rica  Lebanon  Saint Kitts and Nevis  Yemen 
Côte d'Ivoire Lesotho  Saint Lucia Zambia 
Djibouti  Liberia  Saint Vincent and the Grenadines Zimbabwe 
Dominica  Libya  Samoa   
Dominican Republic Macedonia  São Tomé and Príncipe   
Ecuador  Madagascar  Senegal   

D.  Eligible Generation / Issuance Period

In the fourth auction, the winners will receive one PAFERN with a Maturity Date in 2021. To redeem the PAFERN, the emission reductions must have been reported in a single Monitoring Report, generated and issued by one of the eligible standards within the following timeframe:

  Maturity
Maturity Date November 30, 2021
Eligible Issuance Date Any date after the Auction Date (to be announced)
Eligible Monitoring Period (CER) or Vintage Period (VER, VCU) start date Any date between the Auction Date (to be announced) and December 31, 2020

E.  Environmental Health & Safety and Social Criteria (EHS), and Integrity Criteria

The emissions reductions must originate from a CDM, VCS or GS project or program of activities that has received a passing Environmental, Health & Safety and Social (EHS), and Integrity report from a Designated Operational Entity (DOE) accredited at the time of the report. The report has to be dated no more than either 608 days prior to the Maturity Date or no earlier than the Auction Date, whichever date is the latest. The complete Environmental, Health & Safety and Social Criteria (EHS), and Integrity Criteria can be found here: EHS & Integrity Criteria

 

Last update -- November 4, 2019

 

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).