Contract

Project

GGGI Carbon & Financing Club

Expertise

Category

Advisory Support: Level G

Location

Duty Station

Global

Contract Length

Start Date

31 July 2017

End Date

10 December 2017

Part-time/Full-time

Part-time

Contract Value

Daily Rate

Deliverable based 

Days Estimated

40 days estimated

Total Fees

Up to USD 25,000

Specifics of Recruitment

Introduction:

Based in Seoul, The Global Green Growth Institute (GGGI) is an intergovernmental organization founded to support and promote a model of economic growth known as "green growth", which targets key aspects of economic performance such a poverty reduction, job creation, social inclusion, and environmental sustainability. GGGI works with countries around the world, building their capacity and working collaboratively on green growth policies that can impact the lives of millions. The organization partners with countries, multilateral institutions, government bodies, and private sector to help build economies that grow strongly and are more efficient and sustainable in the use of natural resources, less carbon intensive, and more resilient to climate change.

GGGI supports stakeholders through complementary and integrated work streams – Green Growth Planning & Implementation and Investment and Policy Solutions – that deliver comprehensive products designed to assist in developing, financing, and mainstreaming green growth in national economic development plans.

In close cooperation with its peer IOs, GGGI is currently working to support countries to translate their NDCs into climate actions, and to mainstream climate considerations into policies and national budgets. Building on the analysis already completed of all the INDCs, and requests from a number of GGGI member and operation countries for specific support, GGGI’s work around NDCs is primarily focused around investment pipelines – translating NDCs into investments by developing a pipeline of bankable projects.

Objectives/Purpose of the Assignment:

• As of June 2017, 124 countries have expressed a willingness to utilize market mechanisms of the Paris Agreement to implement their NDCs. Article 6 will play an important role in addressing the global need for NDC financing (approximately USD 5.7 trillion) through, among others, the monetization of GHG reductions and the innovative use of the additional revenue stream.
• However, there is a gap between the high-level text of Article 6 and how it will be implemented in practice. Various interpretations of Article 6 as well as its interaction with other provisions (Articles 4, 7, 9, 13, and 14) have been proposed, contributing to general ambiguity and slow progress in operationalization.
• Against this backdrop, GGGI aims to facilitate prototype Article 6 transactions to address the knowledge gap. These “first-of-its-kind” transactions will help determine what works and does not work through actual examples of bilateral/plurilateral cooperation.
• A6I’s starting point will be GGGI’s existing assets: its member countries and bankable projects that GGGI is developing in these countries to support their NDC financing/implementation. The important next step is to design prototype ITMO transactions between potential parties (i.e. buyers and sellers of ITMOs) that address salient issues with respect to Article 6.
• In light of such context, the objectives of this assignment is as follows:
  • To support GGGI in designing prototype ITMO transactions. The transactions must incorporate the latest developments, both within and outside the UNFCCC, on market mechanisms, NDCs, and climate finance.
  • To support GGGI in applying the above to real-life transactions. These will be “first-of-its-kind” transactions involving ITMOs, potentially between GGGI partner countries but may include other entities (e.g. MDBs, non-partner countries, etc.)  

Scope of Work/Output/Reporting Requirements/Deliverables:

The deliverables/outputs are as follows:

• Output 1. Technical Paper (Due: 3 weeks after the contract is signed)

• One section that provides an in-depth review of issues and questions that need to be addressed (with respect to Article 6, other provisions in the Paris Agreement, NDCs, etc.) for the transaction to be feasible. GGGI recommends that the paper be structured in the following manner:

• Begin with a comprehensive list of issues and assumptions that shape the parameters of the transaction. There is currently much ambiguity on the transaction’s various components (e.g. metric of ITMOs, method for allocation of ITMOs between parties, attribution of ITMOs to mitigation targets in NDCs, environmental integrity/transparency/MRV, additionality, interaction between Article 6 and other provisions in the Paris Agreement, etc.). The consultant must thoroughly analyze each issue, how they could or should be addressed, and make explicit the assumptions so that the boundary/framework of the transaction is clearly delineated.
• One section that provides two detailed examples of prototype ITMO transactions. These examples must reflect the key findings of the preceding section. Each example should include at least the following elements:
• Parties to the transaction
• Quantification of the parties’ NDCs
• Scope of the transaction (sector, policy-level / project-level, etc.)
• Details of the policy / project (must be realistic given the socioeconomic circumstance and NDC of the host party)
• Methodology for the calculation of ITMOs generated from the policy / project
• Methodology (or process) for the issuance and allocation of ITMOs between transacting parties
• Options for the financial structure of the policy / project
• Determining the extent of contribution of ITMOs to each parties’ NDCs
• Addressing of environmental integrity, MRV, avoidance of double-counting, and transparency concerns through institutional or other interim arrangement(s).
• Coordination and governance arrangement for the policy / project (involving at least both parties and GGGI)
• A set of summary slides.
• Output 2. Support in application of the transaction models (Due: 24 weeks after the contract is signed)
• The consultant will support GGGI in facilitating actual transactions as part of the “Informal Working Group (IWG)” composed of interested individuals, governments, and entities. The support may include:
• Participation in bilateral discussions as part of GGGI’s project team
• Reaching out to other parties that may potentially participate in the transaction
• Acting as a resource person in GGGI-led IWG meetings on its Article 6 Initiative
• Miscellaneous ad-hoc assistance in furtherance of the project

Output Delivery and Payment Schedule

 * At the latest 

All reports must be in English, in accordance with GGGI’s formatting requirements, and submitted in electronic format along with complete sets of raw data, research materials, interview notes and executive summary presentation produced using MS PowerPoint.

Qualifications/Experience/Expertise

• Min. 20 years of relevant experience in the area of international development and climate change with extensive firsthand involvement in the financing of first-of-its-kind emission reduction projects,
• In-depth knowledge of the international climate regime, key issues and interests
• Demonstrated successes working with various public & private sector players for establishing partnerships and business development
• Experience in making stakeholder engagement plans and related documents.
• Experience in International organizations will be an additional advantage.
• Strong communication, analytical and writing skills
• Fluency in both spoken and written English.