
DecarBOOST
Introduction
The Decarboost Project - Catalyzing Investments to Decarbonize Latin America and the Caribbeanis sponsored by the International Climate Initiative - IKI, funded by the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety - BMU (Germany).
In its three years of implementation (2020-2023), Decarboost will provide evidence to support the creation of enabling conditions for the rapid decarbonization of the economies of Argentina, Brazil and Peru; promoting that financing flows are consistent with resilient, low-carbon development.
Led by SouthSouthNorth (South Africa), it is implemented by CentroClima-Federal University of Rio de Janeiro (Brazil), Fundación Torcuato Di Tella (Argentina), Libélula Comunicación Ambiente y Desarrollo (Peru), and New Climate Institute (Germany). The project operates at two scales: national and international. In Peru, the project has prioritized the theme of Green Recovery.
As part of its activities, the Decarboost project is analyzing the feasibility of implementing carbon pricing in Peru, for which different barriers, opportunities and implementation scenarios are being analyzed. In this sense, one of the components of interest of the project is the development of projects for the reduction of emissions, allowing interested companies to offset their carbon footprint through the purchase of carbon credits. Peru currently has a 33% share of the voluntary market and soon the National Registry of Mitigation Measures (RENAMI) will contribute to set standards for the sale of carbon credits, which will help to clarify the picture. At the international level, there are companies broker involved in the development of carbon credit projects. In this context, the purpose of this consultancy is to develop a business model for a company that offers technical advisory services for the implementation of carbon credit projects.
Objective:
The objective is to engage the services of a consulting firm to develop the investment model for a company offering technical advisory services for the implementation of carbon credit projects..
Currently these companies can function as "brokers" that contribute to the raising of funds to invest in carbon credit pre-projects to develop them and subsequently sell them (detail of the business model: Annex 1). But another way to develop this business is through the technical advisory service that verifies the good quality of the carbon credits, i.e. that they have good monitoring and price. In the Peruvian context, this action would involve managing the entry of the carbon project into RENAMI.
This consultancy will determine which of these business models has the best results in terms of profitability and co-benefits.
Activities to be developed:
- Develop a work plan, including activities, schedule of interviews, meetings, delivery of deliverables (Detailed structure to be considered: Annex 2) and deadlines.
- Investigate similar experiences, environment and context through a PESTEL analysis and Porter's 5 forces.
- Develop a market analysis of supply and demand, as well as identify the profile and characteristics of potential customers. (Detailed structure: Annex 2)
- Determine potential sources of financing.
- Develop a financial analysis, including cost estimation, projected cash flows in two scenarios (conservative and optimistic), NPV and IRR analysis and co-benefits. (Detailed structure: Annex 2)
- As required for each activity, it is recommended that meetings or interviews be held with relevant stakeholders to incorporate relevant information into each of the products.
- Develop a Progress Report and a Final Report as requested in these terms of reference.
- Hold periodic meetings with the project coordinators to follow up on the progress of deliverables and answer questions.
- Make partial and/or final presentations of deliverables to project coordinators or others identified by Libélula.
Deliverables:
Profile required
The professional or service team must meet the following minimum requirements:
- Professional with a degree in Social Sciences, Environmental Sciences, Engineering or related fields.
- Preferably, with postgraduate studies and/or specialization in environmental management and/or, management or formulation of public or private projects.
- Good command of Excel and qualitative data processing.
- Minimum working experience in the public and/or private sector of 5 years.
- Desirable experience in carbon markets.
- Availability to work remotely and conduct virtual meetings.
Equipment and coordination spaces at Libélula
- The contact for coordination of the consultancy will be Natalie Rona, Project Manager or Willy Mak, Analyst.
- The consultant agrees to maintain fluid communication with Libélula and to coordinate progress review meetings or presentations as required, subject to prior coordination.
Duration of the consultancy
The consultancy will have a duration of 30 calendar days for the delivery of the final product, however, an additional 15 days will be considered for obtaining the conformity of the supervisors.
Payment scheme
- Payments will be made within 15 calendar days following the approval and compliance of the deliverables by Dragonfly of the professional fee receipt or invoice issued by the consultant.
- In the event that there are observations to the deliverables presented, the term will be counted from the lifting of the same, which will have a period of 10 calendar days. If, in spite of the time period granted, the consultant does not fully comply with the correction, Libélula may terminate the contract.
- The consultancy will be paid as follows:
Duration of the consultancy
- Technical approach to the product: The consulting team will be responsible for the adequate planning, scheduling, conduct and technical quality of each of the deliverables.
- Product quality: The consulting team will be directly responsible for the quality of the services rendered, as well as for compliance with the schedule, timely achievement of the planned goals and adoption of the necessary provisions for the faithful fulfillment of the contract.
Confidentiality
The consultant undertakes to maintain confidentiality and absolute reserve in the handling of information and documentation to which he/she has access related to the service, and it is expressly forbidden to disclose such information to third parties.
This obligation includes information that is delivered, as well as information that is generated during the performance of the activities and information produced after the service has been completed. Such information may consist of maps, drawings, photographs, mosaics, plans, reports, recommendations, documents and other data compiled by the consultant.
Application Instructions
Interested parties must submit their applications by August 21, 2022, which must include:
- Letter of presentation signed by the professional or institution expressing their interest in assuming the service and committing to comply with the guidelines indicated in the terms of reference and annexes.
- The technical proposal describing how the Terms of Reference will be addressed.
- The technical proposal must include:
- How the result of each of the activities will be achieved;
- Deadlines for activities and delivery of products;
- Any teaming or subcontracting arrangements;
- Personnel and skills;
- Financial proposal; and
- Presentation of the consultant team's CV.
Please send your application to the e-mail address below: [email protected] y [email protected]
Annex 1
Broker business model
Annex 2
Components to consider for the development of an investment opportunity
Description of the investment opportunity
- Brief presentation of the project
- General objective and specific objectives
- Related Activities/Components; specifying the year(s) in which each will be carried out
- Time to complete
- Economic sector
- Location
- Contribution to sustainable development and emissions reduction
- Other information considered relevant
Market analysis
- Identification of the profile and characteristics of potential customers
- Size of potential demand
- Determination of market share to be achieved (initial and final stage)
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About Decarboost
Project that supports the region's efforts towards decarbonization of economies and resilient development.
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