Climate change finance specialist (consultant)

Background

Cambodia is among the countries in South East Asia most vulnerable to extreme events, particularly to tropical cyclones and heavy monsoon rains, usually resulting in annual flooding. It is also prone to periodic droughts. Its vulnerability is exacerbated by the large proportion of the population affected by climate risks due to their dependence on livelihoods that are derived from natural resources which are severely impacted by the hazards mentioned above.

The UNDP has been implementing the Cambodia Climate Change Alliance (CCCA) project which focuses on capacity development and institutional support for civil society and the private sector in the climate change adaptation area. However, the focus is not that strong on the private sector.

The UNDP has also been actively involved in facilitating and coordinating the preparation of the Pilot Program on Climate Resilience (PPCR), working with all related Cambodian government ministries as well as the ADB, IFC and World Bank. Under the PPCR, IFC and the Private Sector Integration team of UNDP have been cooperating to facilitate engagement with the Private Sector following the emphasis provided in the background paper on Climate Investment Funds of July 16, 2009 in a section on: “Cooperation with the Private Sector”: “The private sector is the foundation of economic growth and stability and job creation. Private sector companies should have the ability to adapt to climate change in order to maintain economic and social prosperity and stability. In order to effectively contribute to climate resilience, private sector companies will need to have the knowledge, capacity and financial incentives necessary to undertake appropriate and timely climate change interventions.” This section also highlights the importance of analysing the risks of climate change to the private sector, the role of the private sector in bringing in new investments that manage climate change uncertainties, and the subsequent need to provide incentives and support financing of private sector projects.

In the light of UNDP’s corporate private sector strategy and building on existing UNDP interventions, UNDP Cambodia has formulated a strategic project jointly with the Energy and Environment programme of the UNDP to contribute to supporting private sector activities under the PPCR Phase 1 which is expected to commence in late 2010.

UNDP Climate Change Adaptation Activity

In general, the climate adaptation challenge, and the links between climate change, economic growth, human rights, and poverty alleviation, has not been high on the corporate agenda. This is especially the case in developing countries such as Cambodia where the adaptation challenge is very significant.

The basic initial objective of the UNDP-proposed activities will be to promote greater awareness among the private sector of selected impacts of CC adaptation on businesses (especially MSMEs), and ways to address them. In particular, to disseminate to the business community analyses of the impacts of CC adaptation on private firms partly through the development and elaboration of basic case studies (experiences of actions of successful firms and other relevant cases, in particular of MSMEs).

This objective will be achieved through the preparation and dissemination to the business community of a series of CC adaptation business models and related business opportunities, in (a) climate resilient irrigation, and (b) the financing of climate resilient irrigation projects.

Both activities will be carried out in close cooperation with IFC, as well as other development partners involved in related areas. Both activities will also be carried out bearing in mind that climate change adaptation in the agriculture sector and related infrastructure needs will require significantly more financing than is available through traditional and public sector sources

Duties and Responsibilities

The key results expected from the project outcomes include the following:
- Improve ability of farmers and agro-businesses to respond to CC adaptation challenges.
- Raising awareness regarding climate risks and strengthening climate change resilience.
- Enhancing receptivity to adaptation finance in the financial sector and enhancing availability of CC finance to farmers and agro-business.
- Providing information to potential CC adaptation investors on existing climate resilience financing options in Cambodia.

Accordingly, the targeted outputs of the consultancy are:
1) Preparation of business opportunity profile on priority climate resilient irrigation activities.
The profile aims to cover business responses and relevant opportunities in the CC adaptation area for the irrigation sector, one of the critical components of Cambodia’s agricultural sector, generating significant livelihoods and offering the potential to continue to provide future incremental employment opportunities. The profile will identify investment potentials and major impediments of the related CC adaptation challenges, and through subsequent dissemination under the PPCR and other channels, to assist Cambodian farmers and agro-businesses to:
- understand better the nature of climate adaptation and its implications for their activities and businesses, and the ways that climate resilient irrigation can address them;
- profile the basic risks and opportunities that the impacts of climate change provide;
- learn about international best practice and how other farmers and companies have responded to these risks and opportunities; and
- access case studies of successful irrigation-related responses to climate change impacts through collaboration between various groups of stakeholders.

2) Preparation of CC adaptation finance business opportunity profile to complement the irrigation business opportunity profile. This profile aims at supporting awareness-building of the financing potential for CC adaptation in terms of producing climate resilient irrigation facilities in Cambodia. It will explore how the existing and potential financing mechanisms for CC adaptation irrigation can be applied in less developed countries and suit Cambodia’s CC adaptation irrigation needs and demands. It will cover:
- Availability of existing finance to irrigation (both public sector and private sector), and possible methods of covering the additional costs of climate resilient irrigation;
- Potential additional financing sources and mechanisms to farmers (including best-practice from abroad); and
- Indications of the potential for innovative new mechanisms (such as loans to farmers groups).

The tasks under the project will be undertaken by three professionals, working as a team but recruited separately, that is to say  one Agriculture/Irrigation Specialist and Team Leader (International, 25 days), one Climate Change Finance Specialist (International, 20 days) and one Agricultural Researcher (National, 10 days)

The main tasks, to be completed by the team, required to produce the key outputs are:
1. Design and present methodology, work plan and formats of final outputs, and detailed responsibilities for all team members.
2. Select/review relevant documents (general overview of agriculture, irrigation, agricultural finance, climate change issues for agriculture, and related policies).
3. Conduct meetings and interviews with key stakeholders at central and sub-national level, including with development partners:
- Public sector agencies in agriculture, irrigation and finance
- Public sector agencies in climate change
- Selected development partners in related areas
- Selected provincial farmers, farmer groups, and agro-business in locations that are vulnerable to climate change
- Selected financial and micro-finance institutions

4. Comprehensive survey of cases of international best practice of addressing climate resilient irrigation and related financing mechanisms from countries in the Asia Region

5. Prepare a research exercise dealing with climate change implications on Cambodia’s irrigation sector and related financing issues, specifying the impacts on major stakeholder groups.

6. Include in the research exercise some practical financial models outlining innovative ways that farmers, farmers groups, and agro-businesses may address the challenges of climate change, focusing on climate resilient irrigation.

7. Include in the research exercise a series of findings and recommendations dealing with the relevant topics.

8. Bearing in mind the importance of disseminating the research results to the stakeholders mentioned above, prepare presentation materials to be used as the basis for awareness building tools (such as power points focusing on key topics)

9. Discuss findings and recommendations with the E&E and PS Team and other relevant stakeholders (ex: MoE, MAFF, MOWRAM, development partners, etc) for validation.

10. Interface with the National Human Development Report team within UNDP to provide information to support the preparation of a case study on the research topics covered in the consultancy to be inserted in the NHDR.

11. Other tasks as defined in the work plan.

The team members should be prepared to work with limited logistical support in Phnom Penh. A working space, internet access, and administrative support will be arranged at the UNDP offices. Team members should possess their own laptop computers and mobile phones. It is anticipated that the Team will need to directly arrange meetings with informants and stakeholders with the support of the national agriculture researcher who will be under their direct supervision.

Reporting Framework

The consultants will work under the overall supervision of the Private Sector Integration Team, and the UNDP Climate Change advisor.

Competencies

Corporate Competencies
- Demonstrates commitment to UNDP’s mission, vision and values.
- Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability

Functional Competencies
- Knowledge Management and Learning
- Shares knowledge and experience
- Encourages office staff to share knowledge and contribute to UNDP Practice Areas
- Develops substantive knowledge of one or more Practice Areas
- Promotes a learning environment in the office
- Provides helpful feedback and advice on procurement processes to others in the office
- Actively works towards continuing personal learning and development in one or more practice areas, acts on learning plan and applies newly acquired skills

Development and Operational Effectiveness
- Ability to perform a broad range of specialized activities related to contract, asset and procurement management, including organization and conduct of procurement processes, implementation of contract and sourcing strategies, reporting, control of assets.
- Sound knowledge of financial rules and regulations
- Ability to provide input to business processes re-engineering, implementation of new system

Leadership and Self-Management
- Focuses on result for the client, responds positively to feedback and differing points of view
- Consistently approaches work with energy and a positive, constructive attitude
- Demonstrates strong oral and written communication skills
- Consistently pay attention to details
- Remain calm, in control and good humored even under pressure
- Demonstrates openness to change and ability to manage complexity

Required Skills and Experience

Education
- Master’s Degree in a finance-related field, i.e MBA, business finance, agricultural financing, etc.

Essential knowledge, skills and experience
- At least 10 years experience dealing with financing issues in rural areas of developing countries
- Familiarity with financing models suitable for small farmers, farmers groups, and agro-businesses
- Familiarity with climate change financing sources
- Proven track record of policy advice and recommendations, programme formulation and management
- Good knowledge on private sector needs in agriculture is a strong asset, possibly with previous experience in Cambodia
- Capacity to develop innovative thinking, ability to link ideas from different sectors feeding background for new financing products
- Ability to interact and relate with people at any level, including supervision of and collaboration with national consultants
- Sound liaison, negotiation and representational skills in local and national levels
- Commitment to and skills of knowledge management and capacity development
- Knowledge of UNDP or UN working environment preferred, ideally through previous work

Language Requirements
- Proficiency in written and spoken English.