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Introduction:
Climate change is leading to higher and more variable temperatures, rising sea levels, and more severe droughts, floods, and storms, resulting in infrastructure damage, loss of biodiversity, and diminished livelihoods. The increasing impact of climate change and extreme weather also have a net negative effect on public finances and may trigger economic instability and political shocks. While Africa and LDCs are most affected by climate change, they have the least access to climate finance, particularly for adaptation. Green bonds are demonstrating potential to address the climate financing gap, growing to $523 billion in 2021 and reaching a total market size of $2 trillion at the end of quarter 3 in 2022. However, Africa accounted for only 0.077% of issuances in 2021. African countries face exorbitant interest rates, essentially shutting them out from global capital markets because of several underlying barriers that increase investor risks. Furthermore, green bonds to date have focused primarily on GHG mitigation efforts with a much lower emphasis on climate resilience and ‘blue’ sectors, despite the role that adaptation investments can play in reducing investment risk and potentially improving credit ratings over time. Such efforts are critical to ensuring African countries’ long-term access to affordable climate finance to meet NDC and NAP goals.
EIB as the accredited entity and UNDP as executing entity of the Green Climate Fund (GCF), is supporting the formulation of a multi-country programme titled “Green and Resilience Debt Platform in Africa and LDCs”(GRDP). The programme aims to unlock public and private climate finance at scale by leveraging the potential of green debt capital markets, particularly through climate resilience and blue bond issuances in Africa and LDCs. The GRDP will provide technical assistance to support countries promote an enabling climate-risk-informed investment environment; create a pipeline of bankable green, resilience and blue investments; and strengthen domestic and regional green debt markets and financial institutions. It will also provide access to large-scale guarantees in order to further reduce the cost of borrowing. In doing so, the GRDP will enable African countries to leverage the growing potential of green debt markets, notably by harnessing both institutional and retail investors, at domestic, regional and international levels. It is envisaged that the GRDP will focus on bond issuances in the following GCF result areas: Food and water security; Infrastructure and built environment; Ecosystem and ecosystem services; and Energy access and power generation and Low-emission transport.
This Programme will target an initial cohort of four countries (anglophone and francophone) for support to GCF project formulation and builds on knowledge generated and best practices identified from previous and ongoing projects and programmes.
A project design team comprised international/national technical specialists supporting the EIB/UNDP team will be engaged to develop the Full Funding Proposal. As part of that work, the service of national consultants are required to support into the design of the project and development of the Full Funding Proposal, notably by conducting a gap analysis of existing work related to the GRDP as well as to lead the stakeholder mapping and engagement.
Period of assignment/services – 30 working days.
Proposal should be submitted directly in the portal no later than indicated deadline.
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Negotiation Document(s)
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