A private sector consultation organized by the World Bank on the “Pilot Auction Facility for Methane and Climate Change Mitigation” will take place on January 29, 2015 at the Sofitel Bangkok Sukhumvit, 189 Sukhumvit Soi 13-15, Bangkok, Thailand. The consultation will start at 5.00 p.m. and conclude at 8.00 p.m. with dinner. The PAF will offer options to guarantee a minimum price on carbon credits and is designed to be higher than today’s CER market price. The determination of which firms get the put options, and at what level of price guarantee, will be competitively determined via an auction. In the process the facility will pilot a scalable model for larger flows of future climate finance. Germany, Sweden and the United States have publicly pledged funding and others are expected to join them. More information on the PAF can be found at www.pilotauctionfacility.org.
The PAF’s first auction is expected in mid-2015 and will target methane mitigation projects. While the final rules and eligibility criteria are planned for announcement in the coming months, it is expected that credits from Clean Development Mechanism (CDM) projects in the solid waste management, waste water treatment, and agriculture waste management (including biogas) sectors will be eligible. Please note that the PAF’s price guarantee will only be applicable to new credits, not those already issued.
While participating in the discussion will not be a pre-condition to later benefit from the Facility, the World Bank encourages companies interested in purchasing the Facility’s put options for emission reductions to join this regional consultation to learn more about the PAF and provide feedback on some of its final design and elements.
Please send your confirmation to [email protected] to confirm your company’s participation in the consultation by January 23, 2015. For any queries or clarifications, please contact Scott Cantor at [email protected].