Specialist in Ecosystem-based Adaptation financial mechanisms

at  United Nations

Result of Service
Nature4 Cities Project Output 4.1.1: five project concept notes developed of a fundable quality. Output 1. Define business models and financing solutions to enhance outcome 2 of GCF SAP proposal to increase the project’s potential to generate access to financing and to reduce the risk of investment in climate-resilient productive schemes, and to strengthen the project’s exit strategy establishing synergies with public and private sector actors to ensure a continuous flow of financing to the communities targeted by the project. Project Activity 4.1.1.4: Develop seven national concept notes on Urban Nature based Solutions. This consultancy regards the concept note of Panama, and will provide inputs as follows: Responsibility: Design business models that consider (sustainable) blended finance solutions targeting beneficiaries in the study areas and for the proposed project activities in the GCF concept note. The business models should: a) Align with the requirements of financial institutions and that address their investment risks; b) Meet the borrower profile of project beneficiaries. The following needs to be considered whilst conducting this task: • Identify main entities in the finance value chain and landscape in the areas selected for project implementation, both national and international investors, the role they play and their minimum financing requirements. • Of the interventions in the GCF note, identify interventions that could generate revenue streams. • Identify entry points for communities to engage, including the beneficiaries who might be potential buyers of ecosystem services; and with the carbon market to fund Ecosystem-based Adaptation (EbA), assessing options to leverage additional finance from investors based on existing initiatives. Potential collaborations could take the form of co-investment with GCF funds propitiating enabling environment, technologies and/or capacity building and partner investors. • Assess insurance landscape and identify gaps that need to be addressed to enable smallholder access to financial services. • Assess potential for off-take agreements between beneficiaries (through cooperatives when appropriate) and relevant national and regional companies to strengthen access to markets. • Analyze how the business models proposed takes into account urban and rural contexts, considering the mainstreaming cities approach of Nature4Cities project and integrating the needs of the new areas of intervention identified. Propose financing solutions that enable the beneficiaries of the project to access credit mechanisms under the EbA approach or other approaches that contribute to the climate resilience of the socioecological landscapes. As part of this task, at least two local financial partners are to be identified, willing to drive the business model (s) and to provide concessional finance. Additionally, where possible, facilitate discussions and negotiations between main stakeholders (commercial banks, microfinance institutions, private investment funds, public private partnerships for financing, among others). At a minimum, the models should include: • The approach including scaling-up • Payment terms • What happens when concessional credit is no longer available • How should payment be made. E.g. digital solutions in place • How will the potential revenue streams be calculated (sustainability of the model) • How will the business models be monitored during implementation • Which activities generate more revenues, and how can these be bundled together with those that are not (cross-subsidization) • What level of maintenance and technical input is needed to ensure the models work • Recommendations on the implementation of such business models, i.e. the financing mechanism by which they could be used either linked together or separately. Product 1. Report presenting the business models and financing solutions to enhance outcome 2 of GCF SAP proposal. The document will include the process and methodology used to identify/propose the business models and financing solutions to enhance outcome 2 of GCF SAP proposal. For each business model and financing solution the document will include a complete characterization, and the information presented above in the description of the output to later assess the better options for the adjustment of outcome 2 of GCF SAP proposal. Output 2. Develop pre-feasibility analysis to select the most suitable options of business model and financing solution and adjust concept note accordingly to enhance Outcome 2 of GCF SAP proposal. After selecting business models and financing solutions appropriate to generate access to ensure a continuous flow of financing to the communities targeted by the project, provide an assessment of which business model is likely to work the best and why, along with an assessment of which financing solution is likely to work best with the business model and why. The output include the development of a pre-feasibility analysis to ensure that the proposed models and mechanisms are aligned with the reality of the territory, the financial needs of the beneficiaries and the financial “landscape” of the country, i.e. to analyze the capacities of the financial sector to identify possible opportunities to work with private banks, with existing green investment funds and with climate finance mechanisms that are already operational in the country. Project Activity 4.1.1.4: Develop seven national concept notes on Urban Nature based Solutions. This consultancy regards the concept note of Panama, and will provide inputs as follows: Responsibility: With the inputs of prefeasibility analysis adjust the adaptation component of GCF SAP proposal by providing detail of the business model and financing solution that would allow project beneficiaries to have greater access to climate finance and increase the project’s potential to generate access to financing and to reduce the risk of investment in climate-resilient productive schemes. The enhancement of the concept note will strengthen the project’s exit strategy and establish synergies with public and private sector actors to ensure a continuous flow of financing to the communities targeted by the project. Product 2. Pre-feasibility analysis to ensure that the proposed models and mechanisms are aligned with the reality of the territory, the financial needs of the beneficiaries and the financial “landscape” of Panama. The document will present the results of the analysis, conclusions and recommendations to ensure that the proposed models and mechanisms are aligned with the reality of the territory, the financial needs of the beneficiaries and the financial “landscape” of the country. Product 3. Report including the adjustment to enhance Outcome 2 of the Concept Note of the GCF SAP proposal. The report will present the summary of the adjustments applied to GCF SAP proposal, including the business model and financing solution that would allow project beneficiaries to have greater access to climate finance, as well the enhancement of sections of GCF SAP proposal: theory of change; logical framework; project-related barriers; project objective and structure; implementation arrangements; indicative financing information; and exit strategy. Specific tasks and responsibilities The consultant shall perform the following tasks: • Design a business model and identify corresponding financial solutions that can contribute to an ecosystem-based adaptation approach in the selected area of implementation of Panama SAP GCF project. • Develop interviews with key stakeholders to collect information and ground truth proposed solutions. Stakeholders will include relevant ministries and territorial authorities, beneficiaries of the project and associated grouping structures, financial institutions (international, national and rural; commercial and development banks); non-bank financial institutions, contributing NGOs and academic institutions, implementing partners, and private sector players (including micro and SMEs). • Design business models that consider (sustainable) blended finance solutions targeting beneficiaries of the project in the study areas and for the proposed project activities in the GCF concept note. • Propose financing solutions that enable the target group of beneficiaries of the project to access credit mechanisms. • Develop pre-feasibility studies to ensure that the proposed models and mechanisms are aligned with the reality of the territory, the financial needs of the beneficiaries and the financial “landscape” of the country, i.e. to analyze the capacities of the financial sector to identify possible opportunities to work with private banks, with existing green investment funds and with climate finance mechanisms that are already operational in the country. • Develop a report for the adjustment of the concept note of GCF SAP proposal to enhance Outcome 2, aiming to increase the potential of the project to generate access to financing to strengthen the project’s exit strategy and the synergies with public and private sector stakeholders to ensure a continuous flow of financing to the communities targeted by the project.
Work Location

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