CLIMATE FINANCE ROADMAP AND INNOVATIVE FINANCIAL MECHANISMS AND INSTRUMENTS
JOB DETAIL
CLIMATE FINANCE ROADMAP AND INNOVATIVE FINANCIAL MECHANISMS AND INSTRUMENTS
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
Diagnostic study on the climate finance roadmap and innovative financial mechanisms and instruments in the context of Nicaragua
- Project: NI01-E1 (100%)
- Duty Station: Managua, Nicaragua, with a flexible arrangement (working from home + attending in person to the office when required)
- Contract Duration: 20 October 2023 – 20 February 2024
- Number of Workdays Estimated (internal purpose only): 88
- Consultant Level: Level 4
- Total Fees: up to USD25,000
PROJECT BACKGROUND
GGGI has a diverse portfolio of programs in developing countries around the world. These in-country programs, together with global products and services, focus on delivering results through an integrated approach of evidence-based green growth planning and implementation aligned to “countries” development priorities. The organization also focuses on knowledge development and management activities, which build a solid theoretical and empirical basis for green growth, while providing concrete options and guidance for policymakers, as well as creating the conditions for public and private green infrastructure investments.
Nicaragua’s National Determined Contribution (NDC) was originally submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in 2018 and updated in 2020. The development of the country’s NDC followed a highly participatory and consultative process with vulnerable groups., including native, Afro-descendant, and indigenous communities, women and youth. The resulting NDC is a very ambitious plan that includes climate change mitigation and adaptation measures.
The Green Climate Fund (GCF) is the financial mechanism created within the framework of this Convention (UNFCCC) and seeks to support countries in complying with their National Contributions (NDC) and in this way, contribute to the final objective of keep the increase in global average temperature below 2°C above pre-industrial levels, recognizing that this would significantly reduce the risks and effects of climate change.
The Global Green Growth Institute (GGGI), in collaboration with the Ministry of Finance and Public Credit of the Government of Nicaragua, is implementing a 24-month technical assistance program for the Government of Nicaragua entitled “Mobilization of climate finance and private investments for low carbon development in Nicaragua”. The program, funded by the Green Climate Fund (GCF) Preparatory and Readiness Support Program, aims to improve the institutional capacity, strategic frameworks, and project portfolio of the Government of Nicaragua to increase the mobilization of national and international climate finance and private investments for the implementation of national determined contribution (NDC) and low-carbon development.
OBJECTIVES OF THE ASSIGNMENT
GGGI is looking for a consultant to conduct a diagnostic study on climate finance in the context of Nicaragua, including mapping of actors, identification of national resource sources and international climate finance, barriers, plans and objectives.
The diagnostic study to evaluate climate finance in the context of Nicaragua must address the following criteria:
- Carry out a diagnosis of the Nicaraguan Context in terms of Climate Finance, identifying the needs for institutional strengthening of the public sector and banking sector regarding regulatory gaps and barriers, to achieve the implementation of the NDC.
- Identify innovative financial mechanisms and instruments focused on national sustainable development policies and national climate change policies:
-
- Country analysis in the regulatory, economic, social, and cultural context for the implementation of financial solutions at the national level and technological innovation for the incorporation of green growth.
- Analysis of the Nicaraguan capital market for the issuance of green bonds.
DELIVERABLES AND PAYMENT SCHEDULE
Under the direct supervision of the Project Manager and in coordination with GGGI Nicaragua team, the Consultant will present the following deliverables:
1. Initial report of activities containing the Work Plan and methodology, with its corresponding schedule of activities ten days after the consulting contract is signed.
2. Diagnostic report on the Nicaraguan context in terms of climate finance, identifying the needs for institutional strengthening of the public sector and banking sector. The report must identify regulatory barriers that contain:
• Diagnosis of the current regulatory framework regarding climate finance.
• Analysis and identification of regulatory, economic and market gaps, in the process of designing financial and fiscal instruments, which promote the exchange of debt for climate change, and encourage the development of new viable and feasible financial schemes.
• With the findings detected, prepare a roadmap proposal that includes a map of key actors in the public-private sector, local and international financial organizations, local development banks, relevant indirect actors that have a priority component in the sustainable strengthening process, and potential contribution in the design, development and implementation of innovative financing mechanisms according to the requirements of Nicaragua. 40 days after the start of the Consulting.
3. Report that identifies the context of the financial sector of Nicaragua with the current financial mechanisms and instruments focused on a green growth policy, considering:
• Country analysis in the regulatory, economic, social, and cultural context for the implementation of financial solutions at the national level and technological innovation for the incorporation of the green growth approach.
• Analysis of the Nicaraguan context in terms of capital markets for the issuance of green bonds.
4. Report containing proposals for possible innovative climate-smart financial instruments considering: Selection criteria for innovative financial capital structures (Blended Finance, Risk Mitigation Instruments). Criteria: Relevance, additionality, impact on development with a focus on sustainability, poverty reduction, economic development, profitability, risks.
5. Final report with integrated final products.
PAYMENT AND DELIVERY SCHEDULE
| Payment | Deliverables | Target Completion | Amount (% over total fee) |
| 1 | Work Plan and Methodology | October 26, 2023 | 10% |
| 2 | Diagnostic report on the Nicaraguan context in terms of climate finance, identifying the needs for institutional strengthening of the public sector and banking sector. This report includes a proposal of roadmap of climate finance. | November 30, 2023 | 20% |
| 3 | Report that identifies the context of the financial sector of Nicaragua with the current financial mechanisms and instruments focused on a green growth policy | December 15, 2023 | 20% |
| 4 | Report containing proposals for possible innovative climate-smart financial instruments. | January 10, 2023 | 20% |
| 5 | Final report with integrated final products. | January 15, 2023 | 30% |
Reporting Arrangements
The Consultant will be supervised by the Nicaragua GGGI Project Manager who will be assisted by Green Investment Senior Associate. The consultant’s work progress will be monitored primarily through periodic review meetings. This review, meetings will tackle subjects such as the overview of the contractual objectives, the development of activities, detailed information milestones, actual achievements made against the timeline initially set, and any other relevant progress details.
Deliverable 1 – 5 must be written in English and Spanish, in accordance with GGGI’s formatting requirements, and submitted with proof of editable file back-up (e.g., .docx, .pptx) in the GGGI SharePoint system. Where relevant, the Consultant shall also provide sets of raw data, research materials, and meeting notes related to the contractual objective.
The product referred as to Final Report (Deliverable 5) is a document that will summarize the main deliverables of the assignment, the activities carried out, conclusions, and recommendations about the consultancy, and must be submitted in English and Spanish (maximum 50 pages).
The Global Green Growth Institute (“GGGI”) is committed to transparency, accountability, and openness in the organization. In case of any doubt, please refer to our Whistleblower policy in the link:
http://gggi.org/site/assets/uploads/2017/11/Whistleblower-Policy_02072015.pdf
The consultant should demonstrate the credentials described below.
EXPERTISE REQUIRED
Required:
- Must be a Nicaraguan citizen or foreigner with a valid Work Visa/Permit.
- Master’s degree in business administration, economics, engineering, financial laws, banking and finance, specialization studies in climate finance, environmental management, sustainability applied to business, companies, banks, national financial institutions, development banking.
- Relevant and demonstrable general work experience of 8 years, in the financial sector or development banking, desirable experience in formulation, design and implementation of projects in the public and private financial sector, financial innovation projects, climate finance.
- Experience in public financial institutions, multilateral banks, fiscal policy management, public spending.
- Preferably, at least two years of consulting experience in international financial organizations, multilateral banking.
- Experience in climate finance, two to three years, preferably with GCF funds or similar organizations.
- Experience in Climate Change and sustainable development issues.
- Language: Spanish is required, English is consider a plus
