Study on the involvement of the private sector in financing climate adaptation actions

The global objective of the assignment is to research how the EU, in the context of its external action, can leverage more private investments for climate change adaptation, enhancing adaptive capacity and reducing vulnerability, with a view to support and increase global action on climate change.

The specific objectives of the assignment are to provide:

(1) A Final Report which shall contain the following elements:

Introduction

An introductory overview of the current global private financing for adaptation in developing countries, broken down to the largest possible extent by type of investor (e.g.: international organisations, multilateral development banks, national governments, private companies, etc.), target sector and recipient countries.

Chapter on private financing for adaptation - An overall analysis of:

• the barriers that hamper large scale private sector mobilisation for climate change adaptation and resilience building, possibly broken down by type of investors, target sectors, and groups of recipient countries;
• how the conditions for private financing for adaptation can be improved in order to increase the current amount of investments. This will include a general analysis of the legislative/regulatory frameworks in a representative number of EU developing partner countries which either stimulate or discourage private investments in climate adaptation/resilience and how they can be modified with a view to increase the private sector’s propensity to invest in this field. The analysis should contain the main common elements to such frameworks and provide examples of both good and bad practices of adaptation finance in developing countries. From these examples, the research study should highlight lessons learnt of what does and does not work, with a view to broaden the understanding of how best to increase the amount of private investments for adaptation.

Chapter on the EFSD+

An analysis of the European Fund for Sustainable Development that assesses the capacity of the instrument to leverage private sector financing for adaptation and disaster risk reduction. The instrument foresees 28 guarantee facilities grouped in 5 thematic areas. The experts will analyse at least 4 of the 8 guarantees facilities that were already signed, assess the potential of the EFSD+ to leverage private sector funding for adaptation and disaster risk reduction, and formulate proposals to improve the ability of the EFSD+ to do so, especially during the upcoming programming exercise of this financial instrument. Such proposals will take the form of recommendations that could address, for instance, the thematic areas to be covered, possible modifications to the current guarantee contracts, partner selection, programmes to be supported, involvement of the insurance industry, etc.

Chapter on operational recommendations

A series of operational recommendations on how the EU can support partner countries to reinforce or establish an enabling environment that stimulates private investments in adaptation. Such recommendations should be applicable in particular to LDCs and SIDS. They will include proposals for amendments to legislative/regulatory frameworks of partner countries with the aim to increase private finance for adaptation. The operational recommendations should also target projects implemented by the European Union through the provision of guidance on how project design could be more investor friendly. They will also include options for the EU to support SMEs’ adaption actions. The recommendations on the EFSD+ will have to be included in this chapter as well.

(2) A 2-pages summary brief presenting the main findings of the research study.

(3) A public seminar presenting the findings of the assignment. The seminar will be held in Brussels.

• At least Master's Degree in one or more of the following fields: climate change; environment; public administration; political science; economics; sustainable development; development cooperation, development studies or related fields, or equivalent;
• Knowledge of and professional experience in the climate change and development nexus issues, including aspects relating to the relations between economic development and climate change policies, mainstreaming of climate considerations into policies and programmes, gaps and needs in terms of financial resources etc.
• Very good knowledge of climate finance issues;
• Understanding of the general adaptation and resilience building challenges;
• Good knowledge of the European Union procedures and practices in external cooperation.
• Language skills: Excellent command of the English language (written and oral) with at least C1 level.

General professional experience:

• At least twelve (12) years’ professional experience related to climate change and/or environment;
• At least eight (8) years’ professional experience in development cooperation;
• Work experience with international donors and other public, non-state or private actors in developing countries.

Specific professional experience:

• At least five (5) years' experience in managing consultancy works in the area of climate/environment;
• Knowledge of and experience with climate adaptation projects and funds;
• Work experience in regions and/or countries that are relevant to the climate adaptation challenge, i.e. Small Island Developing States (SIDS) and Least Developed Countries (LDC);
• At least two (2) years of experience in institutional policy support and/or advisory services to national level administration in a developing country.

The two experts should collectively have proven knowledge of (i) economics, (ii) climate change, (iii) environmental/adaptation governance, and (iv) development studies.

• At least Master's Degree in economy, finance, climate change, green economy, development cooperation or related fields or equivalent;
• Knowledge of and professional experience in the climate change and development nexus issues, including aspects relating to the relations between economic development and climate change policies, mainstreaming of climate considerations into policies and programmes, gaps and needs in terms of financial resources etc.
• Language skills: Excellent command of the English language (written and oral) with at least C1 level.

General professional experience:

• At least six (6) years of demonstrated professional experience related to climate change.

Specific professional experience:

• At least five (5) years of relevant professional experience on climate finance, be it at project or research level;
• Proven professional experience with the private sector / financial institutions / (Multilateral) Development Banks on climate change matters.

General description of the position: Climate finance specialist in charge of providing technical information and innovative proposals for the purpose of the assignment.