Expert/s carbon pricing instruments- Collaborative Instruments for Ambitious Climate Action (CIACA) Mongolia

Terms of Reference for Framework of Support (Consultancy)
Expert/s carbon pricing instruments- Collaborative Instruments for Ambitious Climate Action (CIACA) Mongolia

1. The CIACA initiative
   Carbon pricing is a straightforward approach for addressing GHG emissions as it puts a price on carbon creating an incentive for investments into more climate friendly solutions. A growing number of Parties are considering carbon pricing instruments as an approach for implementing their climate action under the Paris Agreement, even among those which did not mention carbon pricing instruments in their NDC proposal. The Paris Agreement explicitly recognizes the important role of providing incentives for emission reduction activities, including tools such as domestic policies and carbon pricing (decision CP21/1 para. 136).
   In addition, as the Paris Agreement enables cooperative action, jurisdictions are also considering putting in place carbon pricing/market approaches to enable future participation in regional and global carbon markets for a variety of reasons: selling mitigation units, attracting funding for their mitigation actions, and achieving their targets more flexibly and more cost-effectively.
   The CIACA initiative was announced during COP22 in Marrakesh, with the objective to support Parties in the development of carbon pricing approaches for implementing their NDC under the Paris Agreement while fostering collaboration. The initiative is jointly managed by the UNFCCC Secretariat and its regional collaboration centres (RCCs). Under the CIACA initiative, one of the countries supported by RCC Asia and the Pacific (RCC AP) is Mongolia.
2. Progress of the CIACA initiative in Mongolia
   Due to insufficient institutional capacities and resources, Mongolian efforts to participate in carbon markets were limited; therefore, moving forward the Government needs to proactively undertake necessary measures to prepare the enabling environment for carbon markets. As Mongolia clearly expressed the intention of using market mechanisms in its NDC, Mongolia has shown great interest in participating in the CIACA initiative to support the country on the development of a domestic carbon market.
   In May 2023, RCC AP, with the support from the President’s Office and OLOLT Center, organized a Capacity Building Workshop on Carbon Pricing and Paris Agreement Article 6 for Mongolian Governmental Stakeholders. One of the key outcomes of the Workshop was the identification of the forest sector as the first sector to explore the use of carbon pricing instruments in Mongolia. The workshop participants expressed great interest to explore the use of carbon finance as a way to fund and accelerate the implementation of the Billion Tree Initiative, a national campaign initiated by Mongolia President U. Khurelsukh in 2021. The participants also highlighted the need for a robust monitoring, reporting, and verification (MRV) framework to ensure high integrity and permanence of forest carbon projects in Mongolia.
3. Objectives and scope of work
   The objective of this consultancy is to support the Government of Mongolia, under the leadership of the President’s office through the Forest Agency, to enable the operationalization of a national forest carbon market by strengthening regulatory and MRV frameworks. Specifically, this project aims to support the Forest Agency and relevant stakeholders to create a holistic enabling environment for the development and implementation of forest carbon projects, considering the following elements:
   a. The design and pilot test of a digital mapping system as one of the MRV components in a national forest carbon market:
   i. To develop a multi-criteria (climate and forestry, environmental, social, economic) analysis to identify required data and create a database for forest MRV as the foundation for a national forest carbon market;
   ii. Based on the multi-criteria developed above, to undertake data analysis and develop a digital mapping system;
   iii. To test the digital mapping system in at least two provinces.
   b. The development of a regulatory framework for the national forest carbon market:
   i. To assess the gaps and opportunities of existing regulatory frameworks in the forest sector and in other relevant parts of the economy and society;
   ii. Based on the gap analysis above, to draft regulations which will enable the operationalization of the national forest carbon program. In addition, the following activities may be proposed optionally:
   c. Stakeholder capacity building and knowledge products
   i. To establish working groups among relevant stakeholders;
   ii. To prepare capacity building materials to be used during stakeholder consultation meetings and workshops;
   iii. To organize stakeholder consultation meetings and workshops;
   iv. To develop a survey to understand the effectiveness of the capacity building materials developed;
   v. To prepare a readiness roadmap for the introduction of a national forest carbon program.
4. Expected results
   This study is not intended to provide a general introduction to carbon pricing. Rather, it aims to develop concrete proposals that will enable the introduction and operationalization of a national forest carbon market in Mongolia. These proposals include:
   a)The digital mapping systems as one of the MRV components in a national forest carbon market;
   b)The draft regulations which will enable the implementation of the forest carbon program
   c)Optionally: Knowledge products (capacity building materials, a capacity building satisfaction survey, a readiness roadmap)
5. Duration and timeline
   The (team) of consultant(s) is expected to start as soon as possible and is expected to conclude the activities a) and b) by the end of 2024. In addition, the optional work package c) may be commissioned separately in 2025.
6. Duty station
   The (team) of consultant(s) will work from his/her place of residence, ideally in Mongolia. If place of residence is not Mongolia, the (team) of consultant(s) will travel on missions to interview relevant stakeholder, present interim results to the Forest Agency and relevant line ministries, and undertake capacity building activities.
7. Implementation and reporting
   The assignment shall be implemented based on a timeline agreed by RCC AP, the President’s Office, and the Forest Agency. All deliverables shall be submitted to RCC AP as well as focal persons within the President’s Office, and the Forest Agency.
8. Qualifications
   •The key expert(s) should have an academic background and professional experience with relevance to carbon pricing, carbon markets, economics (ideally environmental economics and/or energy economics), policy and legal framework and green finance/climate finance, with proven qualifications;
   •Profound knowledge on UNFCCC climate change negotiations, with particular focus on Kyoto Protocol, and Paris Agreement (including Article 6 & NDC Implementation);
   •Profound knowledge of the forest sector (ideally boreal forests), Article 5 of the Paris Agreement, various options for REDD+ results-based payments, market based and non-market based approaches for the forest sector;
   •Experience working with government and non-state stakeholders in national and/or regional policy development and implementation of climate change activities in Mongolia;
   •Familiarity with the major climate change players with proven networks within the government, private sector and civil societies in Mongolia is an asset;
   •Strong analytical and critical thinking abilities;
   •Fluency in English and strong drafting skills;
   •Desired: good communication and presentation skills (able to communicate on complex matters with clear and simple messaged).