The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) of the World Bank is an innovative pay-for-performance instrument that will use auctions to maximize the use of limited public resources for climate change mitigation while leveraging private sector financing.
The PAF uses the existing tools, procedures and experience developed under the Clean Development Mechanism (CDM) e.g. and blends it with an innovative pay-for-performance mechanism embedded into a puttable bond (financial instrument) underwritten by project developers who obtain the (tradable) put option on a guaranteed carbon price.
SQ Consult supported the third-party verification agent in the operational and contractual framework of the PAF led by Kommunalkredit Public Consulting.
For more information contact: Sergio Ugarte
