Reference: EAD/PBCWG/0693
Location: Home-based
Duration: Over the period March to April 2013
Closing Date: 25 Feb 2013
Location: Home-based
Duration: Over the period March to April 2013
Closing Date: 25 Feb 2013
Project Background
The Commonwealth’s 54 countries includes in its membership 25 Small Island Developing States (SIDS), 19 African countries, 16 Least-Developed Countries (LDCs) and 32 small states. These groupings are significant for together they account for a significant number of the most vulnerable states and populations globally to the impacts and effects of anthropogenic climatic change.
The Commonwealth through its 2007 Lake Victoria Climate Change Action Plan collectively recognised that climate-change is a multi-faceted development challenge which requires a multi-faceted approach to addressing it, both in terms of mitigation and adaptation. The vulnerability of the above countries to the impacts of climate change, however, has not translated into securing increased levels of finance and the magnitude of investments necessary to support fully the transformation to a low-emission and climate-resilient and a more sustainable development path. It is widely recognised that further support is needed, in particular to enable these more vulnerable countries, to fulfil and climate-proof their national development strategies, frameworks and plans. There is also a need for climate financing to be driven more strongly by national programmes and needs.
In 2009, Commonwealth Heads of Government recognised that levels of public and private financial resources for developing countries to address the challenges of climate change need to be scaled up urgently and substantially. Two years later, the Commonwealth Secretariat convened a High Level Meeting on Climate Finance of member states and development partners to explore the demand side of climate finance, i.e. how to make climate financing already available flow more effectively to developing countries in implementing their national climate strategies. The Commonwealth Secretariat then brought together representatives of regional institutions (the Caribbean Community Climate Change Centre, the Secretariat of the Pacific Regional Environmental Programme, and the Indian Ocean Commission) to explore further collaborative efforts with the Commonwealth Secretariat to unlock climate finance and build economic and climate resilience.
Moreover in 2011, at the Commonwealth Heads of Government Meeting (CHOGM) in Perth Australia, the Heads of State agreed, on the recommendation of an Eminent Persons’ Group, that the Commonwealth Secretariat General convene an expert group on climate change. The Commonwealth Secretariat is currently in the process of establishing this group. Part of the remit of the Expert Group will be “to provide a study to advance the Lake Victoria Climate Change Action Plan1, including which programmes are a priority, how they could be structured, and how they could be financed and implemented”.
Consultancy Purpose
The proposed research to be undertaken by the successful tenderer aims to provide an evidence base for the soon-to-be established Expert Group. Drawing on available literature and secondary research the successful tenderer will be required to provide a snapshot of the state of access to and disbursement of climate finance in developing countries of the Commonwealth. This will include exploring various options for finance, particularly for the most vulnerable members of the Commonwealth as well as undertaking analysis of what has and had not worked, and also making suggestions of what innovative mechanisms, advocacy and support might overcome some of the barriers to the disbursement of funds. This will build on and take forward the analysis done for the January 2011 Commonwealth High Level Climate Finance Meeting and also since the Copenhagen Accord in 2009. | Read more >>
The paper will serve as a catalyst for discussion for a meeting of the Commonwealth Expert Group on Climate Finance. It is anticipated that the Group may hold its first meeting at Marlborough House on 22 April 2013.
Scope of Consultancy
The research paper will examine various sources of funding available to support Commonwealth member states in their transformation to low-emission climate resilient economies. It should provide a snapshot of the state of climate finance in the Commonwealth. This should include moving beyond an account of levels to looking at barriers and opportunities to uptake and disbursement.
The literature review should pay particular attention to the barriers to access to and disbursement of climate finance, drawing on available global, regional and Commonwealth country reports.
It is expected that the following points will be covered through the research:
- Description and analysis of the status of National Adaptation Plans of Action (NAPAs) and level of investment in adaptation in Commonwealth countries, and the status of mitigation finance especially since the Copenhagen Climate Talks in 2009
- Description and analysis on the status of access to broader green/environmental funds and the interrelationship between green funding under development assistance and climate finance
- Provide a mapping of available source of public, private and blended finance available to assist Commonwealth countries including multilateral disbursement channels (e.g. through the Green Climate Fund, the Global Environment Facility Trust Fund, etc.) and an overview of types of initiatives supported and features of the application process for such funds
- Consideration of national actions underway to address climate change that have been financed and sources of finance in the context of national sustainable development frameworks and strategies:
- Identification of key barriers to access to and disbursement of climate finance, including any constraints in human and institutional capacities, technological transfer, infrastructure requirements and the costs of addressing these. This could include exploration of: the extent to which national planning systems are equipped to uptake new climate finance resources; how has climate finance been addressed and accounted for in national budgets; the means used to develop capacities to secure climate funds and implement climate related actions; how the public sector can create an enabling environment for the provision of private sector investment; and to what extent have national implementing entities (NIEs) been successfully established and operating in full and how can regional implementing entities (RIEs) contribute to enhanced access to climate finance
- Expand on and update the barriers to climate finance already identified in the paper prepared by Mr Neil Bird of the Overseas Development Institute for the Commonwealth Secretariat in 2011 including:
- coherence between multilateral and bilateral provision of finance
- limited experience in how to blend public and private finance
- need better understanding of the role of private sector finance in most vulnerable countries
- improvement in understanding contribution of different financing instruments within national climate change strategies
- missing a set of recognised operating principles to allow for equitable matching of financial instrument with specific climate related action.
- Propose potential solutions and opportunities for practical action (e.g. trust funds or other “master keys” to unlock financing and ensure it is quickly disbursed, intraregional collaboration and pooling of services and expertise) and areas for international advocacy to help address this.
In undertaking the above research, information should be disaggregated by and presented using the following classifications: Small States; Small Island Developing States (SIDS), Least Developed Countries.
Timing
It is estimated that the above paper will require the successful bidder to assemble a team of between 3 and 5 consultants, with a designated team leader to deliver a draft Background Paper to the Commonwealth Secretariat for comments by 23 March 2013. The successful bidder will then be expected to address these comments and submit the final Background Paper submitted to the Commonwealth Secretariat by 4 April 2013. The successful bidder should also be available to present a summary of the key findings of the paper to the Expert Group on 22 April 2013.
Profile of successful Tenderer’s Team:
- Each team member should possess a post-graduate degree in the field of environment, natural resources, finance, or energy or a related field;
- The Team Leader should possess a minimum of 15 years’ experience on climate change and energy in the context of sustainable development;
- The team should exhibit knowledge of development issues and energy priorities of Commonwealth developing countries;
- The team should demonstrate a knowledge of various climate and environment funds available;
- The team should have an understanding of the roles of the relevant national and regional authorities involved in environment and climate finance in small states and LDCs; and
- The team should also have a high level of communication and analytical skills and a proven ability to elicit information and conceptualise and package it in an easily digestible format for both the public and senior officials.
Reporting
The successful team will report to the Economic Adviser, Climate Change & Development, through the Adviser and Head of the Small States, Environment and Economic Management (SEEM) Section and the Director of EAD.
