For its fourth auction, the PAF will accept emission reductions that comply with the following eligibility criteria:
- Emission Reductions Eligibility
- Eligible Methodologies
- Eligible Countries
- Eligible Generation / Issuance Period
- 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 July 1, 2020 |
| Eligible Monitoring Period (CER) or Vintage Period (VER, VCU) start date | Any date between the Auction Date (March 3,2020) 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 -- December 10, 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).
