9.1 Can you summarize the upfront costs to participate in the PAF auction?
Bidders must pay a refundable deposit that corresponds to the maximum number of PAFERNs the bidder seeks to purchase. If a bidder wins the auction and becomes a successful bidder, he/she must purchase the PAFERNs at their issue price, which is the same as the refundable deposit ($0.30/ton). The cost of verification and issuance, as well as the cost of the EHS & Integrity audit are also the responsibility of the PAFERN holder. Project owners and option holders are encouraged to make their own estimates of their costs to participate in the PAF auction.
9.2 Will the emission reductions be used to meet voluntary emission reductions targets or will they be cancelled?
Some of the PAF Participants have requested that their share of the credits be cancelled, while others have requested that they be transferred to their accounts.
9.3 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, Verified Emission Reductions, or Voluntary Carbon Units.
9.4 Are the documents that the applicant provides to the World Bank as part of its application, including the executed Participation Agreement, subject to public disclosure under the World Bank’s Access to Information Policy?
Application materials submitted by the bidder are subject to the World Bank’s Access to Information Policy. However, given the confidential nature of these materials, these materials will not be subject to public disclosure.
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This page is for information only. Please see the disclaimer:
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).