WWF abre llamado a consultoría para desarrollar estudio sobre Mercados Financieros Verdes | WWF

WWF abre llamado a consultoría para desarrollar estudio sobre Mercados Financieros Verdes

Posted on
13 septiembre 2017


Terms of reference (TOR)
 
I. Tendering organization 
WWF is the world’s largest conservation organization with 5 million supporters and a global network of offices and partners operating in more than 100 countries. WWF’s mission is to conserve the world’s biological diversity, to ensure that the use of natural resources is sustainable, and to make consumption more sustainable.

The Collaboration for Forests and Agriculture (CFA) is a new regional partnership supported by the Gordon and Betty Moore Foundation, and led by the National Wildlife Federation, TNC and World Wildlife Fund. CFA seeks to eliminate the loss and degradation of forests and other natural habitat that result from beef and soy production originating from the Brazilian Amazon and Cerrado, and the Chaco region of Argentina and Paraguay. CFA is working with key market actors, including corporations across the value chain, financial institutions, and others to create a systemic, industry shift towards responsible beef and soy value chains.

The Conservation and Financial Markets Initiative (CFMI, Finance, or Initiative) is also a new regional partnership supported by the Gordon and Betty Moore Foundation, and led by the World Wildlife Fund, Ceres and WBCSD. CFMI intends to mainstream sustainability/ESG in financial markets’ and companies’ decision-making alike. The Initiative aims to effect change at scale, recognizing that the rate of natural resource degradation and destruction must be slowed sharply in order to achieve meaningful conservation outcomes. CFMI will leverage emerging signs that major food companies have begun to change their practices in favor of improved environmental management. It stipulates that these changes can be accelerated and broadened across industries if mainstream capital markets become aligned with sustainability and conservation objectives. CFMI will therefore work to introduce systemic changes built around transparency and governance that lay the foundation for a strong business case for sustainability in corporate decision making as well as capital allocation.
 
II. Purpose 
The production of beef and soy in key Latin American regions is the leading cause of deforestation and other key environmental impacts. The Gordon and Betty Moore Foundation (GBMF) has launched a significant new market based initiative in order to make the production of these two commodities more sustainable. WWF is a partner and co-architect in this initiative, along with several partners on the finance component of the project including The Nature Conservancy, Ceres, World Business Council for Sustainable Development, and the National Wildlife Federation.
 
Through Conservation and Finance Markets Initiative (CFMI), this group wants to understand better the role of finance in the expansion of these industries and to ultimately redirect the financial flows to sustainable production.
 
This work is related to CFMI, Sub-outcome 1.1, on Private Finance: A critical mass of international and regional commercial lenders make commitments to eliminate deforestation and illegality within their portfolios by 2020 to capture the entire supply chain. 
 
III. Background
  • The main drivers of deforestation in Latin America are cattle ranching and agriculture, particularly the production of soy and beef.
  • The region of key concern is the Chaco.
  • The focus of the consultancy is to analyze, review and identify opportunities in the financial market, that will effectively align public and private capital in Paraguay to contribute on the reduction of land use changes in the Chaco for soy and beef production
  • The key financial institutions include public institutions such as central bank, government development banks or lending agencies and other credit facilities; multi-lateral and bi-lateral entities and credit facilities; the Roundtable for Sustainable Finance and private financial institutions such as banks, institutional investors, funds of various types, and other private sources of debt and equity investments.
  • Key non-financial institutions involved in financing primary production will include corporations (both multi-national and local) that interface with primary producers, such as commodity traders, processors, manufacturers, retailers or brands that provide credit, input financing, etc.
IV. Objectives 
This research will analyze, review and identify opportunities in the financial local and international market to encourage, deforestation-free investment products and lending policies in the Chaco region or that affect the demand of products such as beef and soy produced in the region.
 
V. Activities 
5.1. Develop an engagement strategy with the key actors; listed above.

5.2. Review of international experiences, best practices as to green finance and institutional developments. The consultant is to take stock of international experiences as to the provision of green finance and services by the financial sector, both public and private in Paraguay as well as other countries with the same commodities orientation (Brazil, Argentina and others).
The Consultant is to take stock of green financing instruments (e.g. risk sharing, green bonds, warehousing receipts, leasing) and services (like intermediation for the carbon market) and evaluate their current use in Paraguay and other neighboring commodities oriented countries in order to identify market opportunities (gaps), with a special interest in agriculture, livestock and agroindustry sectors.
The role of international capital markets and the role of standards should also be discussed. The report should advise strategies, policies and activities to implement such incentives in the local financial market.

5.3. Assess the appetite and conditions of international financial investors to invest on a potential green economy in Paraguay.
The Consultant is to carry out a survey among international financial and public investors to ascertain current and conditional interest to invest in a green economy in Paraguay. The survey is also to find out under which conditions international investors would be interested to invest in Paraguay.

5.4 Identification of green financing market and regulatory gaps and barriers by reviewing current financial trading and market regulations and institutional arrangements, and comparing against international best practices, and make recommendations, where necessary;

5.5 Analyze the demand of the domestic and international markets for Paraguayan green bonds, structured green financial instruments and green financial products.
 
VI. Deliverables 
1. A detailed workplan for project deliverables for WWF approval.

2. Engagement strategy with key actors for validation by WWF (as per activity 5.1).
 
3. Review of international experiences, best practices as to green finance and green financing instruments and services (as per activity 5.2).
 
4. Assessment of the appetite and conditions for international financial investors to invest in the green economy of Paraguay (as per activity 5.3).
 
5. Identification of green financing market and regulatory gaps and barriers (as per activity 5.4).
 
6. Analysis of the demand of the domestic and international markets for Paraguayan green bonds, structured green financial instruments and green financial products (as per activity 5.5).

VII. Supervision
WWF-Paraguay will supervise the work.
 
VIII. Requirements
  • Proven knowledge of public and private financial institutions.
  • Excellent contacts with relevant FIs and other key individuals and institutions.
  • Excellent spoken and written English and Spanish.
Obs.: Applications from individual consultants and / or team of consultants will be accepted.
 
IX. Conditions for application
Submit an intention letter, workplan, budget and curriculum vitae to: acano@wwf.org.py with copy to contrataciones@wwf.org.py until September 24th,2017.
 
X. Budget—will vary depending on the scope of the work
  • US dollars
  • All deliverables must be submitted or translated into English in addition to Spanish
  • Estimated working time will depend on the scope of the overall work product that the institution is capable of delivering. The goal is to finish the work within 3-4 months. Timelines will be reviewed with the consultant once the contract is signed.
 
XI. Payment terms
1. Proposed work plan that meets the TOR with clear deadlines and engagement strategy with the key actors (October)

2. Review of international experiences, best practices as to green finance and green financing instruments and services

3. Assessment of the appetite and conditions for international financial investors to invest in the green economy of Paraguay

4. Identification of green financing market and regulatory gaps and barriers

5. Analysis of the demand of the domestic and international markets for Paraguayan green bonds, structured green financial instruments and green financial products