7.1 Who is responsible for costs relating to verification and validation, the put option owner or the PAF? In the case of the CDM, who pays the share of proceeds?
The put option owner is responsible for expenses relating to the verification and issuance of the emission reductions, including the share of proceeds in the case of the CDM.
7.2 Does a DOE need to register under the PAF to provide the EHS Audit Report?
No, DOEs do not need to register under the PAF. However, at the time of the EHS Audit Report, DOEs must be accredited by the CDM in accordance with Paragraph 20 of the CDM Modalities and Procedures.
7.3 Will the World Bank become a CDM project participant or focal point?
No, the World Bank will not become a project participant or a focal point.
7.4 Once a project has been verified by the DOE, how does the PAF ensure that the project meets the fourth auction eligibility criteria?
The PAF has selected Kommunalkredit Public Consulting GmbH (KPC) as verification agent to ensure that emission reductions satisfy the fourth auction eligibility criteria. This verification process consists of two separate checks: to complete the first check, the verification agent will perform a desk review to confirm that 1) the emission reductions identified by the noteholder in the Final Redemption Notice are eligible as per the eligibility criteria, and 2) the EHS Audit Report (submitted with the Final Redemption Notice) has a pass grade. At the second check, the verification agent will confirm that emission reductions transferred to its registry account are the same emission reductions reviewed during the first check. These two checks will be done as desk reviews and will not include any site visit. There is no cost for the project owner for these checks.
Additional information can be found in the Draft Final Terms, which can be obtained by sending an e-mail to firstname.lastname@example.org. The email must contain disclaimer language cut and pasted from this webpage.
7.5 What if the second check is negative? Will emission reductions be transferred back to the note-holder?
The noteholder will transfer emission reductions directly to the Verification Agent's registry account. Should the second check be negative, the Verification Agent will use all endeavors to transfer emission reductions back to the noteholder. However, the noteholder may receive different emissions reductions.
7.6 Is there a review procedure or dispute resolution mechanism to address any mistake made by the Verification Agent?
No, there will be no review or dispute resolution procedure to challenge the decision made by the verification agent. While PAFERN holders face a remote risk of loss in the case of verification agent error, this risk is mitigated by the nature of the task performed by the Verification Agent, who will check that the EHS & Integrity report has received a pass and that the emission reductions are eligible. The verification agent will not be required to exercise any judgment in performing either of the two checks.
7.7 When are emission reductions transferred to the registry account?
A specific timeline for the transfer of emission reductions is detailed in the draft bond terms, which can be obtained by sending an e-mail to the email@example.com. The email must contain disclaimer language cut and pasted from this webpage.
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).