Project Title: Accelerating Green and Climate Finance in the Philippines
The country’s commitment to the Paris Agreement calls for accelerating climate actions – with a focus on mitigation, but cognizant of adaptation co benefits. The Intended Nationally Determined Contributions (INDC) submitted by the Philippine government calls for 70% reduction of emissions compared to its 2012 baseline; while ramping up adaptation actions. While not a significant contributor to global emissions, the country is on the receiving end of damages and losses from disasters brought about by both slow onset and extreme climate events, as well as the aggravating effects of geological induced disasters.
As a low middle-income country and one of the most at risk country in the world, the costs of dealing with disasters and climate change pose significant constraints in achieving sustainable development goals. For the period 1995-2015, it has been reported that in the Philippines, some 130 M people have been affected by weather related disasters; next to China and Bangladesh. Aside from the cost on human lives, disasters exact a heavy toll on the economy. Over the period 2005-2014, the country lost an average of $1.6 billion every year (International Disaster Database 2016). Typhoon Yolanda alone caused an additional 2.3 million people to fall back behind the poverty line; exacting an estimated USD 12.9 Billion in damages and losses; and hampering economic growth by 0.9% in 2013 and 0.3% in 2014. The World Economic Forum indicated vulnerability to natural disasters as among the leading obstacles to doing business and investing in the country. The UNISDR estimates that average annualized long-term loss (AAL) from multi hazards in the Philippines represent 69% of social expenditures and 14% of annual capital investments. Given that spending on social protection, public health and public education investments is critical to SDGs, this situation highlights that achieving these goals will come at exceedingly high cost, unless drastic measures are implemented to reduce overall vulnerability.
The country has prioritized climate resilience as a cross cutting strategy in its Philippine Development Plan and has carried out a number of programmes to realize this. The magnitude of the problem however, requires a concerted effort by all sectors and opening up investments to achieve the desired targets and achieve sustainable development goals.
One of the untapped potential is the resources and financing and other solutions that the private sector could mobilize for its portfolio to support climate and nature based investments at the same time, deliver on SDGs. After all, there is a clear business case for private sector investment in climate and nature based solutions – from financial and risk management as well as business opportunity perspectives. All throughout the world, companies are recognizing the need to ensure their operations are resilient against disruptions brought about by the impacts of climate change and environmental degradation. On the one hand, there is increasing evidence of the tremendous business opportunity for low carbon mitigation projects, and adaptation measures.
The objective of this assignment is to prepare a UNDP Project Document to be submitted to the Canadian Embassy and other appropriate development partners on “Accelerating Green and Climate Finance in the Philippines.” The Project aims to increase private sector investments in green and climate resilient technologies, innovations, practices and approaches in support of a just transition to resilient and low emission development, that protects the rights of all affected and at risk through the identification and prototyping of innovative solutions coupled with policy and stakeholder engagement.
This will be realized through the following Outputs:
Output 1: Existing platforms for evidence-based policy dialogue between government, development partners and private sector strengthened to enhance enabling policy, improve coherence, and support development of innovative financing mechanisms for climate and green investments.
Output 2: Climate Finance Lab (The Lab) established and business, services and partnership model for sustaining operations in the Philippines identified, to effectively curate innovative financing mechanisms, attract capital from private sector, philanthropies and other sources, and potentially partner on the implementation of green and climate investments where appropriate.
Output 3: Improved capacities of finance (commercial, micro finance, national) institutions to better incorporate green and climate related policies in their financing programmes and products.
Output 4: Independent impact measurement management system in place to report on SDG and adaptation/mitigation impacts of green and climate investments by private sector and financing institutions.
Technical supervision shall be provided by the Climate Action Team Leader, UNDP. Specialists from the Country Office, Bangkok Regional Hub and Headquarters shall provide technical inputs as appropriate. A Technical Working Group composed of government representatives shall be established to participate in the design process, and provide inputs.
Duration of Work
It is estimated that the work shall involve a total of 25 person-days of effort; over a period of 8 weeks, commencing April 2021 and ending June 2021.
It is preferable that the Consultant be based in Manila, but not necessary.
Scope of Price Proposal and Schedule of Payments
The financial proposals from possible candidates should be expressed in lump sum amount inclusive of all financial costs related to this engagement (i.e. transportation/travel to and from residence-Manila and/or within Metro Manila, supplies & materials, reproduction, communications including internet). Travel expenses to project-related meetings and workshops outside of Metro Manila shall be paid for by the Project based on the UNDP DIM Rates.
The Payment terms are as follows:
Submission and acceptance of detailed approach, methodology and work plan
Within one week from contract signing
Submission and acceptance of Draft ProDoc
Within six weeks from contract signing
Submission and acceptance of Final ProDoc
Within eight weeks from contract signing