COLOMBIA: FINANCE AND ECONOMIC CONSULTANT FOR IKI SPAR6C PROGRAM

INTRODUCTION TO GGGI

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

GENERAL INFORMATION

• Project: Supporting Preparedness for Article 6 Cooperation (SPAR6C) Program 
• Duty Station: Bogotá, Colombia.  Hybrid work (office and home office)
• Contract Duration: 01 October 2024 – 31 September 2025 (70% availability)
• Number of Estimated Workdays (internal purpose only): 151 workdays
• Consultant Level: Level 4
• Total Maximum Fees: 37.750 USD 

 

PROJECT BACKGROUND

The Carbon Pricing Unit (CPU) of GGGI is implementing several programs related to scaling up international carbon trading, now covered by Article 6 of the Paris Agreement.  By opening these markets and the resultant flow of transactions it is envisaged a robust and reliable global price for carbon can be established, something many governments and private sector actors have long called for to motivate the transformational change needed to achieve the ambitious goals of Paris. GGGI’s Article 6 programs provide technical assistance and capacity building to government counterparts to improve their readiness for Article 6 engagement. These programs support the design of projects and policies for pilot transactions and strengthening of institutional frameworks required for their implementation.

The Supporting Preparedness for Article 6 Cooperation (SPAR6C) Program, funded by the International Climate Initiative (IKI) of the German government, is a five year, 20M EUR program from 2022-2027.  Its objective is to use Article 6 (A6) cooperative approaches to engage the private sector in NDC implementation and to raise ambition. This will enable cost-efficient, flexible, high integrity carbon markets with positive sustainability impacts. Transformative design of A6 pilots for real transactions of internationally transferred mitigation outcomes (ITMOs) will be enabled by research-based capacity building in four partner countries: Colombia, Pakistan, Thailand and Zambia. The program consists of six work packages, of which two are centrally managed and four are country driven. In the first two, best practice tools and approaches to implement cooperative mechanisms will be developed, underpinned by an international forum – a community of practice of Article 6 implementing countries - that brings together countries and practitioners, who share the common objective of raising ambition through markets. In-country implementation will focus on three areas of work in each of the four countries: 1) Long-term planning, 2) institutional readiness to transact and 3) pilot design and transactions. More than eight A6 pilot programs will be implemented in Colombia, Pakistan, Thailand and Zambia based on a toolbox of innovative guidance and approaches for transformative A6 design.

The program is implemented through a consortium led by GGGI and consisting of UNEP Copenhagen Climate Centre, Carbon Limits AS, GFA Consulting Group GmbH, and Kommunalkredit Public Consulting GmbH. The SPAR6C Program is supporting Colombia in developing its institutional, regulatory, and technical framework and capacities to embark on Article 6 transactions of ITMOs during the NDC implementation period 2020-2030. The program's first stage has been the development of a Readiness and Needs Assessment for implementing Article 6 (RNA), which examines the country's capacities and systems to consolidate a strategy, and guiding principles, institutional and procedural framework, and monitoring tools related to Article 6. The analysis was carried out based on secondary information registered in the NDC, the National GHG Emissions Inventory, the Biennial Update Report, and existing policies and regulations related to climate change, among others.

The RNA developed by the program identifies the need for the Government of Colombia to prioritize mitigation measures that could benefit more for participation in Article 6, in order to strategically participate in the mechanism. Given the implications of Article 6 for national NDC compliance due to the obligations of corresponding adjustments, GGGI is advising the government with various analyses that provide decision support for the determination of the eligibility of these measures.

One of these analyses relates to the inclusion of additional costs related to the implementation of the mitigation measures in the marginal abatement cost curves (MACC). In addition, GGGI is expected to construct additional MACC for new mitigation measures to be contemplated in the updated NDC. This will feed into financial gap analyses to evaluate the role that the Article 6 carbon market may have in financing the NDC targets, and furthermore the impact Article 6 can have on the national economy. All these can become relevant robust inputs that inform a business plan for participation in the Article 6 mechanism as well as the trajectory of implementation of mitigation actions to reach carbon neutrality by 2050, informing the update of the following NDCs including the carbon market as one of the financing instruments and increase ambition. Additionally, the SPAR6C program is contributing to assess the role of carbon markets in the climate finance and investment landscape in Colombia.

GGGI will conduct these analyses with various service providers. With this context, GGGI is seeking an experienced economics and financial expert to accompany these studies, provide technical orientation, review of products, quality control and quality assurance.

On the other hand, SPAR6C is embarking on studies scoping the viability of Article 6 for various mitigation activities and subsectors in Colombia, including green hydrogen, forest restoration and industrial logistics. It is expected that in 2025 Colombia will determine eligible sectors for Article 6, enabling SPAR6C to structure pilot projects for transactions.

The expert will support additional analyses related to the economic and financial dimensions of the mitigation activities developed by the program. The expert will advise and guide the program in the identification of financial gaps, improvement of cost information, development of financial scenarios and plans for A6 activities, and other recommendations related with implications and opportunities the country will have by participating in Article 6 carbon market and implementing the NDC mitigation actions.

 

OBJECTIVES OF THE ASSIGNMENT 

GGGI is seeking an economic and finance expert that supports the preparation and implementation of Article 6 of the Paris Agreement in Colombia as part of SPAR6C Program at GGGI Colombia and GGGI´s Carbon Pricing Unit.

 

SCOPE OF WORK

Under supervision of the GGGI Colombia Senior Officer – Policy Coordinator & SPAR6C Colombia Coordinator, the consultant will support the following activities of Article 6 preparedness and implementation in Colombia:

1. Preparation of a work plan that will be developed in coordination with GGGI.
2. Oversee external consultancies to ensure that any financial and/or economic analysis is diligently performed. This analysis may include cost information of mitigation measures of Colombia’s NDC, financial analyses of these measures and the quantification of the size of the voluntary carbon market in Colombia.
3. When required, perform the economic and/or financial analysis mentioned in numeral 2. 
4. Support the design of a business plan for Article 6 in Colombia stemming from the aforementioned cost, mitigation and financial analyses; as well as from the screening of NDC measures that the SPAR6C program has undertaken.
5. Support the SPAR6C program in providing technical assistance to the Government of Colombia on the role of Article 6 and potential increase of ambition for the NDC update and the new NDC for 2031-2035 that will be delivered to the UNFCCC by October/November 2025.
6. Advice and guide the economic and financial analysis of the environmental investments applicable to the implementation of Article 6, in close collaboration with GGGI's team, consulting firms and partners.
7. Support the provision of technical assistance related to economic and mitigation modelling for Article 6 in Colombia in close collaboration with the Ministry of Environment and Sustainable Development.
8. Work together with other SPAR6C colleagues in the structuring of pilot projects for Article 6 implementation, particularly on the economic and financial dimensions.
9. Support in developing thematic content for the capacity building component of SPARC6 and providing team members and other stakeholders with training on issues related to the scope of work of this consultancy.    
10. Generate content suitable for concept notes, reports, presentations, and other support materials required by GGGI related to SPAR6C 
11. Work in tandem with the GGGI team to support preparedness for Article 6 in Colombia.
12. Support the development and delivery of the 2025 Annual SPAR6C workplan.
13. Conduct third party peer reviews of documents generated by the team.
14. Present monthly activity reports that highlight the main activities and results of the consultancy for that period.

 

REPORTING ARRANGEMENTS

The consultancy will be supervised by Senior Officer, Policy Coordinator and GGGI SPAR6C Colombia Manager, to ensure the timely and quality delivery of the products described in the contractual objectives.  Follow up of activities will be done taking as reference the agreed working plan and further amendments as agreed.

• The consultant's work progress will be monitored primarily through periodic review meetings for planning, and biweekly meetings for prioritizing activities, changing in priorities and scope of deliverables. These review meetings will tackle subjects such as overview of contractual objectives, development of activities, detailed information milestones, actual achievements made against the timeline initially settled, and any other relevant progress details. The assessments will be carried out under the guidance of GGGI staff.
• The consultant will carry out the foreseen activities virtually, and in person as agreed in the workplan and during its progress. A presence in the GGGI office of at least 40% is required and attend virtual meetings with other programs regionally and globally.
• All products (documents with their annexes and infographics, diagrams, tables, and any graphic developed to facilitate understanding of technical contents) will be delivered in digital media, in open files that allow their edition.
• In terms of language, all reports and requested products be in Spanish. The work plan and an executive summary (2-3 pages a word document and 5-slides PowerPoint document) at the end of the consultancy must be presented in both languages Spanish and English.
• The consultant must submit monthly progress reports in GGGI's standard template. 
• All relevant technical documents, reports and other documents prepared from the beginning to the end of the consultancy will be attached to the Final Report.

 

SUGGESTED METHODOLOGY

The consultant will provide support and technical input for the implementation of SPAR6C Program in Colombia, through permanent advice and guidance to the expected results related to economic and mitigation modelling, tracking voluntary market finances, and develop pilot Article 6 transactions.

The consultant is expected to have biweekly interactions with the Senior Officer, Policy Coordinator and GGGI SPAR6C Colombia Project. The consultant will be asked to report progress in relation to contractual objectives, activities, and milestones during the meeting. The consultant shall support the GGGI team in internal and donor reports on the topics of the consultancy. Changes in the workplan could be agreed as a result between GGGI and the consultant.

Before submitting each deliverable, the consultant will be expected to share and circulate a draft version of the document with the GGGI Project Manager, allowing at least two weeks to receive comments and feedback. Submission of final deliverables must include a clean version as well as a tracked changes version (for MS Word documents) which includes responses to comments received. Additionally, the consultant will participate in bi-weekly meetings of the Project Team.

Within the framework of the Supporting Preparedness for Article 6 Cooperation Program, the consultant must promote and participate in dialogues with relevant stakeholders, provide technical inputs and develop proposals that support the Ministry of Environment and Sustainable Development, acknowledging and taking into account the following objectives/activities of SPAR6C Program for Colombia:

• Develop a Strategy for Participation in Article for the Government of Colombia.
• Support Colombia in a strategic engagement in current and forthcoming bilateral agreements related to A6.
• CDM transition process.
• Provide input and strategic advice for the COP-ASIC global and national program.
• Support the consolidation of arrangement with national universities to implement the COP-ASIC program in Colombia.
• Develop a technical evaluation of real projects with potential to participate in A6.2 and A6.4 carbon market.
• Support the identification and evaluation of the sectorial MRV systems to determine the potential for A6 participation.
• Support structuring of mitigation actions prioritized for Article 6.
• To generate skills, competences and knowledge appropriation on article 6 in different stakeholders that promote research, projects developers, decisions based on evidence, among other.
• Maintain the positioning of SPAR6C and GGGI with regards for A6 activities in Colombia; keep stakeholders up to date with the latest developments on A6.
• To promote studies and research of high impact on article 6 and its application in the Colombian framework that can be inputs and evidence for policy makers and decision makers.
  

 

EXPERTISE REQUIRED

The description of required expert may be split into following parts:

• (REQUIRED) Must be a Colombian citizen, or a foreigner holding a valid Work Visa.
• (REQUIRED) Undergraduate studies in administrative or economic sciences (Business Administration; Finance, Financial Administration, Public Accounting, Public Administration, International Business, Economics, or similar); environmental sciences (Biology, Ecology or similar), Geography or Earth Sciences, Forestry Engineering, Engineering, and Political Science.
• (REQUIRED) Postgraduate degree in Economics, Finance, Business Administration, Public Administration, Public Policy, Environmental Economics or similar.
• (REQUIRED) Professional experience of at least 5 -7 years in financial and economic analysis, project financial sustainability analysis, climate financing. Advantageous to have demonstrated experience in carbon markets, banking and/or financial modelling and evaluation.
• (DESIRABLE) Knowledge of the environmental sector, public financing, multilateral funds, including the role of the private sector in climate financing.
• (DESIRABLE) Experience in financial modelling, MACC analysis and econometric modelling.
• (DESIRABLE) Field experience with either environmental or development institutions,
• Understanding of public policies at the national and local levels.
• Proficiency in Microsoft Office applications (Word, Excel, PowerPoint, etc.)
• Exceptional analytical and quantitative skills; capacity to synthesis complex information and deliver presentations; excellent communication and strategic thinking skills.
• Organized with excellent time management and attention to detail.
• Strong and mature interpersonal skills and proven ability to work with teams.
• Strong command of spoken and written English and Spanish.

 

ADMINISTRATIVE INFORMATION

• Selection method / process: Competitive Selection
• Required documentation: Application form, CV, and cover letter should be sent in English.
• Timeline of the selection: 14 days.
• Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application.

 

Child protection – 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.