GREENHOUSE GAS (GHG) COMPENSATION AGREEMENT

APRONAD develops the Project: "Panama Forests Conservation Project Reduction of GHG Emissions Through Deforestation and Avoided Degradation", an alliance of Indigenous Peoples and Rural Communities of Panama, The Project provides benefits such as mitigation against climate change by reducing emissions of GHG from unplanned deforestation that occurs due to historical and social factors; that contributes to the conservation of biodiversity, including the High Conservation Values related to the Protected Areas determinAed by the Panamanian State, and the promotion of sustainable development of local communities.

This project has been registered in VERRA (verra.org), under the VCS v4.0 standard, VCS Methodology VM0015 v1.1, CCB Standards Third Edition and is awaiting verification by AENOR. This project is expected to generate benefits for:

a) the protection of approximately 61,707.41 ha. of primary and secondary forests during the useful life of the project, located in the Protected Areas and their buffer zones. The project would prevent the release into the atmosphere of 11,195,383.00 tCO2e of GHG emissions in 30 years, with an annual average of 198.22 Ton / Co2e per hectare, and

b) forge a strategic alliance between indigenous peoples and peasants and agro-industrial companies, around the conservation of forests, helping to consolidate environmental governance.

APRONAD offers interested companies to compensate through this project, a total of 6,505,562.06 tons of CO2 not verified, corresponding to the year 2020, for a value to be agreed.

This project is in the verification process and will be certified in 2022, including CO removals for the period beginning in 2017 and until 2046.

For more information:

Francisco Rivas email apronad@gmail.com

$9.6 million in exchange for 3.4 million metric tons of reduced CO2e emissions

The Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) is an innovative climate finance model developed by the World Bank Group to stimulate investment in projects that reduce greenhouse gas emissions while maximizing the impact of public funds and leveraging private sector financing.

Its results-based payment mechanism sets a floor price for future carbon credits in the form of a tradeable put option, which is be competitively allocated via auctions.

The PAF is backed by Germany, Sweden, Switzerland (Through a joint contribution of the State Secretariat of Economic Affairs (SECO) and the Climate Cent Foundation), and the United States.  The facility has a capitalization target of $100 million. In a first phase, it will support projects that cut methane emissions at landfill, animal waste, and wastewater sites facing low carbon prices.

The establishement of the facility was an outgrowth of the Methane Finance Study Group Report, delivered to the G8 in 2013 as a result of its request for innovative pay for performance approaches to addressing methane. In its design and development phase the facility benefited from the support of Partners in the Climate and Clean Air Coalition.

The PAF Secretariat has sent us this important news.

"Dear Colleagues,

We are pleased to announce that the Pilot Auction Facility for Methane and Climate Change Mitigation (PAF) has made the second repayment of PAFERNs bonds issued after its three auctions held in July 2015, May 2016 and January 2017.

This year’s redemption provided $9.6 million in exchange for 3.4 million metric tons of reduced CO2e emissions from projects that achieved methane and nitrous oxide abatement around the globe. The carbon credits came from landfill gas-to-energy projects in Brazil, Chile, Malaysia, Mexico, Thailand, and Uruguay; wastewater treatment and biogas utilization projects in Thailand; and a project addressing nitrous oxide emissions from nitric acid production in Egypt.

The World Bank issued a press release highlighting the results of this year’s redemption, available here.

The PAF provides a price guarantee for eligible future carbon credits in the form of a zero-coupon bond, allocated through an online auction. The bonds issued after the three initial auctions will continue redeeming through 2020. The PAF is backed by funding from Germany, Sweden, Switzerland, and the United States. Building on the success of the pilot, the World Bank is expandinLa g the facility into a broader Climate Auctions Program and willexplore how to use auctions to help countries implement their goals under the Paris Climate Agreement.

For more information about the PAF, please visit www.pilotauctionfacility.org or contact the PAF Secretariat at paf_secretariat@worldbank.org".