Technical Consultancy for the Development of an Environmental Impact Coefficient, Economic Assessment for Natural Forest, and Regulatory Recommendations for Updating the Forest Utilization Compensation Fee in Colombia

Consultancy Level: 4 

Consultancy Type: Deliverable

Daily rate for the Level: 200 USD

Application Deadline: Shown in the bottom of the page

Project Background

The Global Green Growth Institute (GGGI) is a treaty-based international, intergovernmental organization dedicated to supporting and promoting strong, inclusive, and sustainable economic growth in developing countries and emerging economies. To learn more, please visit the GGGI website.

GGGI provides technical and strategic support to ministries, government agencies, and development partners to identify, structure, and advance investment opportunities that contribute to sustainable development and climate goals. Its work focuses on strengthening policy and regulatory frameworks, enhancing institutional capacity, developing bankable projects, and facilitating access to public and private sources of finance.

Through these efforts, GGGI helps address market, institutional, and financial barriers that constrain investment, enabling partner countries to mobilize resources and accelerate the implementation of sustainable and resilient development initiatives.

The Financing for Forests (F4F) programme is funded by the European Union. The overall objective of the programme is to improve access to and the quality of financing for the forestry sector in partner countries through the implementation of pilot projects and/or the scaling up of innovative financial instruments.

Over the next five years, the initiative will contribute to strengthening forest financing ecosystems in the Lao People’s Democratic Republic, Mongolia, Guyana, and Colombia. This will enable the forestry sector to generate stable, long-term revenue, attract commercial investment, and reduce dependence on donor funding.

In Colombia, the proposed intervention is designed to address the principal gap identified in the country’s forest finance ecosystem: while Colombia has strong policy ambition, institutional capacity, and multiple financing instruments already in place, these have not translated into long-term investment in sustainable forest management, restoration, biodiversity conservation, and forest-based productive activities.

The Compensatory Fee for Forest Utilization (Tasa Compensatoria por Aprovechamiento Forestal Maderable, TCAFM) is one of the instruments that has become a potential barrier to the development of the sector. The fee is an environmental levy for access to the timber provisioning service of natural forests, and its revenues are earmarked for the conservation and renewability of the remaining forest. However, it has not been structurally updated since 2018. Its calculation is based on parameters derived from commercial plantations, which do not reflect the conditions of natural forests or the differences between species, and it does not measure the actual impacts of harvesting on ecosystem services. As a result, the fee neither reflects the real environmental costs of harvesting nor provides adequate price signals: in some cases, the costs of legal harvesting can exceed its potential income, creating incentives for illegal logging.

Adjusting the fee is directly aligned with the Government’s current policy agenda. For the 2026–2030 period, the Government of Colombia has launched Misión Crecer, a strategy to boost economic growth by removing the barriers that constrain it. In the environmental sector, it is guided by the premise “Protect to produce, restore to grow, and conserve to prosper”, which aims to make the country’s natural capital the foundation of its development. The fee sits at the heart of this premise: it is the price that legal users pay to produce from natural forests, and the source of earmarked resources to restore and conserve them. When the fee discourages legal harvesting and fails to reflect the real value of the forest, it becomes exactly the kind of barrier that Misión Crecer seeks to remove. Adjusting it is therefore a concrete way of putting the strategy into practice in the forestry sector.

The adjustment also responds directly to four priorities of the national ABC Agenda (Water, Biodiversity and Communities):

• “Ambientalizar”: a viable fee allows forest users to move from restriction to productive use, making legal and sustainable harvesting a real option.
• “Productive natural capital”: sustainable timber value chains depend on legal timber being competitive with illegal timber, which a better-calibrated fee can support.
• “Security + environment”: by reducing the incentives for illegal logging, the adjustment contributes to combating illegal economies and restoring territorial control.
• “Conservation creates value”: a fee that reflects the real costs of harvesting generates more sufficient and better-targeted resources for forest conservation and renewability, strengthening the financing mechanisms that the priority seeks to promote.

The Ministry of Environment and Sustainable Development, through the Office of Green and Sustainable Businesses (ONVS), is at the centre of both agendas. The ONVS leads the environmental component of Misión Crecer and, under Article 9, paragraph 10 of Decree 2570, is responsible for preparing the studies for setting the minimum rates of compensatory and retributive fees. It is therefore the natural counterpart for this consultancy.

For F4F, the fee is a strategic entry point to address the gap identified in Colombia’s forest finance ecosystem. It is one of the few instruments that directly links forest use with the generation of stable, domestic resources for forest management, reducing reliance on donor funding, and it shapes the economics of every legal harvesting operation in natural forests. A fee that reflects the actual environmental costs of harvesting, while remaining viable for legal users, can strengthen the enabling environment for long-term investment in sustainable forest management, restoration, and forest-based productive activities.

To this end, GGGI is seeking a consultant to identify and quantify the environmental impacts of timber harvesting in Colombia’s natural forests, through the design, validation, and application of a methodology, and to estimate the economic cost of these impacts and their relationship with the fee. The results will inform the proposed adjustment of the Compensatory Fee for Forest Utilization, including its cost structure and its viability for legal forest users.

Objectives of the assignment

The consultant will design, apply, and validate a methodology to identify and quantify the environmental impacts of timber harvesting in Colombia’s natural forests. Based on the results, the consultant will develop an environmental impact coefficient to be incorporated into the calculation of the Compensatory Fee for Forest Utilization and will assess how this coefficient affects the cost structure of the total fee, considering the impacts on ecosystem services that it reflects. Building on this analysis, the consultant will provide recommendations on the costs and structure of the fee, as well as regulatory recommendations and implementation guidelines for its adjustment and effective application.

This work aims to ensure that the fee reflects the actual costs arising from impacts on ecosystem services, and to contribute to an enabling environment for mobilizing greater financial resources towards the sustainable management of the forestry sector.

Activities

In accordance with the terms of the contract, the consultant shall carry out the following activities:

1. International review and methodological basis

A. Identify and assess at least three international methodologies used to calculate the renewable resource factor, or equivalent components, in fees or charges applied to timber harvesting in natural forests. The assessment will compare these methodologies with the one used in Colombia, considering: (i) how the fee is structured and calculated, including its components, parameters, and differentiation criteria; (ii) the resulting fee levels and how they affect the cost structure of forestry operations; and (iii) the management measures required to prevent, mitigate, correct, and compensate for the environmental impacts of harvesting, and their associated costs. The analysis will identify lessons and good practices applicable to the adjustment of the Colombian Compensatory Fee.

B. Develop a comprehensive methodological proposal for identifying and assessing the biophysical impacts resulting from timber harvesting in natural forests. The methodology must define its conceptual framework and methodological design, including:

1. • Assessment strategy (i.e. pressure–impact–ecosystem service relationship)
   • Data collection methods (fieldwork, secondary sources, spatial analysis)
   • Sampling design and representativeness criteria
   • Use of tools, for example: geospatial (GIS) tools for impact analysis
   • Harvesting technologies

The methodological proposal must be aligned and consistent with technically validated methodologies for assessing the impacts of sustainable forest management, explicitly integrating coordination with IDEAM’s Forest and Carbon Monitoring System and with national approaches for monitoring forest degradation. It is suggested that the review of methodologies include the consulting report that the Ministry released in the first half of 2026.

Moreover, it must take into account the different types of harvesting (domestic, persistent, and single harvest) and isolated trees, as well as the activities specific to each type of harvesting, and consider variables associated with the intensity and volume of extraction, harvesting methods and technologies, and the biophysical conditions of the ecosystem, including forest type, structure, biodiversity, soils and hydrology, amongst others. The scope will be delimited based on the work plan of the consultant, which will define how to identify, characterize, and quantify the biophysical impacts resulting from timber harvesting in natural forests.

C. Identify, define, and prioritize a minimum set of biophysical variables, related to forest structure and dynamics and to the ecosystem services the forest provides, that should be characterized before resource use begins in order to assess the impacts of that use on the resource’s renewability. These variables will serve as a common reference for the baseline information required in forest use applications.

D. Identify, analyse and prioritise ecosystem goods and services including, but not limited to water regulation, carbon sequestration and storage, biodiversity conservation and ecological support functions, that may be affected by timber harvesting and what methodology might be appropriate to identify the level of impact, which would be incorporated into the proposed methodology, providing a clear justification for their relationship with timber harvesting in natural forests.

E. Define indicators, units of measurement, scales of analysis and criteria for assessing impacts on ecosystem goods and services, incorporating:

• • Baseline references
  • Thresholds for change or impact
  • Timeframes for assessment (short, medium and long term)
  • Methods of measurement and data analysis

2. Application of the methodology and measurement of impacts

F. Validate and apply the proposed methodology for the identification and biophysical quantification of the environmental impacts of timber harvesting in natural forests, in collaboration with environmental authorities, including the systematisation of results and the comparison of different harvesting scenarios, for:

1. • Persistent Use Class in forest and biodiversity development hubs and/or sustainable forest management areas prioritised by the Ministry of the Environment and Sustainable Development.
   • Single Use Class in use areas prioritised based on the database of uses granted for the 2026 period.
   • Domestic Use Category in utilisation areas prioritised based on the database of utilisation permits granted during the 2026 period.
   • Isolated trees based on applications submitted during the 2026 period.

At each site, the application of the methodology will include the characterization of the biophysical baseline, using the variables defined in Activity 1.B, against which the impacts of harvesting will be quantified. The baseline will be built primarily from the reference information contained in the approved management plans (persistent use) and in the environmental licenses or authorizations (single use), complemented with field data. Where this information is not available or is insufficient, as may be the case for domestic use and isolated trees, the baseline may be established through comparable unharvested reference areas.

The methodological proposal must define the number and location of field sites to be visited for each use category, with a minimum of three (3) sites for persistent use and two (2) sites each for single use, domestic use, and isolated trees. The final number, location, and schedule of visits will be agreed with the Ministry of Environment and Sustainable Development as part of the work plan. This agreement will ensure that the visits are representative, that they are coordinated with and supported by the Regional Environmental Authorities, and that the available resources are used efficiently.

G. Assess and systematise the results derived from the application of the methodology, including the evaluation of impacts on prioritised ecosystem goods and services, comparison against the biophysical baseline, and analysis of changes across different temporal scales.

H. Identify prevention, mitigation, correction, and compensation measures for the impacts of timber harvesting on the prioritised ecosystem services, and estimate their reference costs for each use category, considering the variables that enable their implementation.

3. From the cost of impacts to the fee

I. Review the parameters and costs underlying the minimum rate (TM) of the Compensatory Fee for Forest Utilization, which were based on commercial plantation conditions, and propose their adjustment to the conditions of natural forests (e.g., silvicultural practices, growth rates, harvesting cycles, and recovery costs) for each use category.

J. Develop a biophysically based ecosystem service impact coefficient to be incorporated into the renewability coefficient, including its conceptual basis, calculation approach, variables, assumptions, and operational use in the calculation of the Compensatory Fee for Forest Utilization.

K. Estimate the economic cost of the environmental impacts of timber harvesting on the prioritised ecosystem services for each use category, and analyse its relationship with the Compensatory Fee for Forest Utilization, in order to calibrate the ecosystem service impact coefficient. This activity will include:

• Valuation methods. Selecting and justifying the economic valuation methods for each prioritised ecosystem service, according to the available information, to be agreed with the Ministry of Environment and Sustainable Development.
• Economic valuation. Estimating the economic value of the biophysical impacts quantified against the baseline used in the application of the methodology (activities F and G), for each use category (see note 2).
• Allocation of costs among the components of the fee. Identifying which cost items are already covered by the fee and which are not, in order to avoid double counting. Each cost item will be assigned to a single component: the minimum rate (recovery of the harvested timber volume), the existing coefficients of the regional factor (in particular the environmental impact coefficient, CAA, which reflects the type of felling and extraction practice), or the new ecosystem service impact coefficient (impacts on the prioritised ecosystem services that are not recovered through the silvicultural activities reflected in the minimum rate).
• Estimation of the fee and comparison with the cost of impacts. Estimating the value of the fee per cubic metre of standing timber for each use category under three cases: (i) the current formula; (ii) the adjusted minimum rate; and (iii) the adjusted minimum rate with the ecosystem service impact coefficient developed in Activity 3.J. These values will be compared with the economic cost attributable to the ecosystem service impact coefficient, as defined in item (c), in order to determine whether, and to what extent, the fee with the new coefficient captures the environmental costs of harvesting.
• Calibration of the coefficient. Translating the uncaptured costs identified in item (d) into values of the ecosystem service impact coefficient, so that the resulting fee reflects the economic cost of the impacts. This includes defining:

1. 1. • the ranges of application of the coefficient, that is, its minimum and maximum values according to the use category and the intensity of the impacts; and
      • its weighting within the renewability coefficient, that is, how much it influences the fee relative to the other components, considering how these components are combined in the fee formula.

Note 1: To avoid double counting, the valuation should exclude the timber provisioning service, which is covered by the minimum rate, and should consider only the impacts on the prioritized ecosystem services that are not recovered through the silvicultural activities reflected in the minimum rate. Each cost item should be assigned to a single component of the fee.

Note 2: The economic valuation should use primary information where it is available, including the data collected during the field visits and the biophysical baseline characterized in Activity 2.A, which is built primarily from the reference information contained in the approved management plans (persistent use) and in the environmental licenses or authorizations (single use). Where primary information is not available or is insufficient, the consultant may use valuation methods based on secondary information, such as benefit transfer, restoration or replacement costs, and avoided costs, drawing on national and international literature and previous studies. These include the study commissioned by the Ministry of Environment and Sustainable Development in 2025, which analyzed economic valuations of ecosystem services. Where the baseline could not be established from these sources or through comparable unharvested reference areas, the consultant may use reference values from the literature, clearly stating the assumptions, sources, and limitations of the estimates.            

Based on this calibration, the consultant will estimate the final value of the fee with the calibrated coefficient for each use category, and the share of the environmental costs it captures.

L. Conduct a scenario analysis to assess the viability of the adjusted fee, considering the effects of incorporating the ecosystem service impact coefficient into the renewability coefficient for each use category, under different levels of capture of the environmental costs identified in Activity 3.K. The scenarios will consider both the current and the adjusted minimum rate, in order to distinguish the effect of the new coefficient from the effect of adjusting the minimum rate. The analysis will assess the effects on the renewability coefficient and on the total fee value, on the cost structure of forestry operations, and on fee revenues and their potential to mobilize financial resources for sustainable forest management. It will also determine whether the resulting fee remains viable for legal forest users, identifying the thresholds beyond which it could compromise the financial viability of legal harvesting, disproportionately affect domestic use, or create incentives for illegal logging. The results will be used to adjust the ranges of applications and weighting of the coefficient defined in Activity 3.K, and to inform the final proposal for the fee.

4. Recommendations, knowledge and regulatory inputs

A. Take part in technical working groups, follow-up meetings and coordination forums organised by the Ministry of the Environment and Sustainable Development as part of the consultancy project.

B. Prepare and present progress reports and results of five (5) national or regional technical forums organised by the Ministry of the Environment and Sustainable Development. These events could be in person, hybrid or virtual.

C. To produce the technical inputs required as part of the process of adjusting the regulatory compensation rate in accordance with the guidelines issued by the Ministry of the Environment and Sustainable Development.

D. Consolidate the final methodological framework, integrating conceptual, analytical and operational components into a single coherent approach.

E. Prepare a consolidated final report integrating all results, including recommendations for regulatory adjustment and implementation guidelines for environmental authorities.

Deliverables and Payment schedule

The consulting project will be organized into six payment installments that group the deliverables as follows:

* The first and last deliverables must be submitted in English and Spanish

Reporting Arrangements

The Consultant reports to the Sustainable Landscape Senior Associate, under the technical guidance provided by the Colombian Ministry of Environmental and Sustainable Development (Sustainable and Green Business Office and Direction of Forests, Biodiversity and Ecosystem Services). The consultant's work progress will be monitored primarily through periodic review meetings for planning and monthly short face-to-face (or virtual) meetings for prioritizing activities, all of which are in line with the previous consensus with the Contract Supervisor. In this review, meetings will tackle subjects such as the overview of the contractual objectives, the development of activities, detailed information on milestones, actual achievements made against the timeline initially set, and any other relevant progress details. 

All Deliverables will be produced in Spanish, according to GGGI's formatting requirements, and submitted with proof of an editable file backup (e.g., .docx, .pptx) in the GGGI SharePoint system. Additionally, the consultant will deliver one monthly brief in English (it can be an email) explaining the activities developed the month before and for any other deliverable, if so requested by the Project Manager. Where relevant, the consultant shall also provide raw data sets, research materials, and meeting notes related to the contractual objective.

Suggested methodology and competence requirements.

• The consultant should follow the specific methods provided by the Contract Supervisor.
• The consultant will best use both primary and secondary sources of information to develop activities defined under the contract objective.
• The consultant will be responsible for providing transparent financial information regarding expenses incurred for conducting field visits, orientation meetings, webinars, or workshops.

Expertise required

Academic qualifications:

• (MANDATORY) Bachelor’s degree in Forestry Engineering, Ecology, Biology, Economics, or related fields.
• (MANDATORY) Master’s degree in environmental sciences, forestry, natural resource management, environmental economics, resource economics, or related fields, or equivalent combination of education and experience.

Professional qualifications:

• (MANDATORY) 5–8 years of relevant professional experience in environmental assessment, forestry, or natural resource management.
• At least two years of work experience in forest-related contexts in Colombia (policy, management, or applied studies), Environmental impact assessment, Forest ecosystem analysis or monitoring,
• Development of technical methodologies or indicators, and field-based environmental studies
• Experience developing indicators, metrics or similar analytical outputs for environmental assessment.
• Solid capacity for quantitative analysis of environmental data (applied, not necessarily advanced).
• Ability to translate biophysical information into structured outputs (e.g. indicators, criteria, or factors applicable to decision-making processes).
• Experience in field data collection and interpretation in environmental or forestry contexts.
• Familiarity with GIS or spatial analysis tools, combined with the use of field and secondary data sources.
• Desirable
  • Understanding of environmental economic instruments (e.g. fees, compensation schemes or incentives)
  • Experience linking technical or biophysical analysis with regulatory or decision-making processes
  • Experience working with forest monitoring systems or environmental datasets

Social and sustainability safeguards

GGGI as an institution abides its project-level Sustainability and Safeguards Rules (SSR) for all projects aligned with international standards for Environmental and Social Safeguards. The SSR is aligned with commonly recognized international standards for Environmental and Social Safeguards (ESS), i.e. the WB Performance Standard, that ensure project level safeguarding of communities and people impacted by GGGI activities. GGGI has integrated project level Environmental and Social Safeguards into its Project Cycle Management (PCM) with mandatory Preliminary Gender and Social Assessments and ESS Screening of all projects to identify and manage risks.

In addition, GGGI’s Gender Equality and Social Inclusion Strategy 2021-2025 provides a framework toward achieving the principle of “Leaving No One Behind” in the transformation towards green growth, guiding GGGI’s approaches to the mainstreaming of gender equality and poverty reduction in GGGI Colombia’s Program. This also includes the implementation of the GGGI Gender Equality and Poverty Reduction Policy Markers on all projects. GGGI’s Corporate Results Framework requires gender disaggregated indicators for participation in GGGI Capacity Building events.

GGGI’s Child Protection Rules and GGGI Rules on Sexual Exploitation ensure safeguarding of children impacted by GGGI activities or in contact with GGGI contracted personnel, with GGGI taking a zero-tolerance approach to child exploitation. GGGI is committed to child protection, irrespective of whether any specific area of work involves direct contact with children. GGGI’s Child Protection Policy is written in accordance with the Convention on the Rights of the Child. All procedures mentioned above are accompanied by guidelines and capacity building efforts. GGGI also provides a work environment that reflects the values of gender equality, teamwork, embracing diversity in all its forms, integrity, and a healthy balance of work and life. We are committed to maintaining our balanced gender distribution and therefore encourage women to apply. GGGI promotes equal opportunities for all including persons with disabilities.

All GGGI’s policies are available for open consultation under the following link: https://gggi.org/policy-documents/

ANTI-Fraud and Safeguard

GGGI is committed to applying transparency and accountability in its decisions and actions and practicing integrity in all aspects of its operations. GGGI’s anti-corruption policy establishes zero tolerance for corruption and fraudulent, coercive, and collusive practices in GGGI’s operations. The whistleblowing policy is available at the following link https://gggi.org/site/assets/uploads/2017/11/Whistleblower-Policy_02072015.pdf

In addition, all GGGI’s policies are available for open consultation under the following link: https://gggi.org/policy-documents/. 

Administrative information

• Request: GGGI Application form, CV and cover letter in English.
• Selection method / process: Competitive.
• Timeline of selection: 12 days
• Availability during the project period
• No conflict of interest arises while taking this assignment

Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application. CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.