For its second 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 second auction, the winners will receive a series of four PAFERNs with four consecutive Maturity Dates. To redeem each 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 timeframes::
| Maturity # | M1 | M2 | M3 | M4 |
| Maturity Date | Nov. 29, 2017 | Nov. 29, 2018 | Nov. 27, 2019 | Nov. 30, 2020 |
| Eligible Issuance Date | Any date between and including the Auction Date (May 12, 2016) and M1 | Any date between Apr. 1, 2017 and Sep. 24, 2018 | Any date between Apr. 1, 2018 and Sep. 23, 2019 | Any date between Apr. 1, 2019 and Sep. 23, 2020 |
| Eligible Monitoring Period (CER) or Vintage Period (VER, VCU) start date | Any date on or after Sep. 15, 2014 | Any date on or after the Auction Date (May 12, 2016) | ||
E. Environmental, Health & Safety and Social Criteria (EHS), and Integrity Criteria
The emission 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 608 days prior to the Maturity Date. The complete Environmental, Health & Safety and Social Criteria (EHS), and Integrity Criteria can be found here >>EHS & Integrity Criteria
Last update -- February, 2016
