The rapid evolution of the global carbon markets, including the Kyoto Protocol’s Clean Development Mechanism (“CDM”) and Joint Implementation (“JI”), offers significant opportunities for emission reduction projects.
In June 2007, UNDP established the MDG Carbon Facility (“the Facility”) with the dual mission to: - Expand access to carbon finance to under-represented countries
- Promote emission reduction projects which contribute to sustainable development and the Millennium Development Goals (MDGs)
Under the Facility, UNDP provides emissions reduction projects with a package of technical assistance services along the entire project cycle, from project identification to the first issuance of emission reductions. These services are provided by a team of staff at HQ (technical support), regional level (day-to-day project management) and country level (local coordination).
Fortis Bank (“Fortis”) acted as the Facility's financial services provider from June 2007 to 2009, when its 2 year agreement with UNDP expired. Fortis' role in the Facility was to purchase the emission reductions generated by the Facility's projects.
The Facility is now operational with government agreements in place in over 30 developing countries and has developed a diverse portfolio of early-stage projects, covering a range of technology types and geographies.
More information on the Facility can be found at www.mdgcarbonfacility.org
Institutional Aspects
The project document ‘Making MDG Carbon a Reality’ sets out the necessary components to operationalize the Facility, including tasks such as recruiting and training of staff, establishing operational committees and procedures, and developing technical tools. The objective of the project document is that “UNDP has established itself as an effective, credible, provider of carbon finance services to developing countries that meet double standards of greenhouse gas emissions and local development objectives”
The Facility is managed out of the Energy & Environment Group, in the Bureau for Development Policy. In terms of oversight, the MDG Carbon Board, with senior representation from all UNDP bureaux, meets on a bi-annual basis to review the status of the Facility. |
Evaluation Activities
The evaluation activities will involve the drafting of two complementary reports: (1) Evaluation of the establishment of the Facility, as per the project document.
(2) Review of the Facility’s strategy and operational model.
These activities, to be performed by external parties, are foreseen and required by the project document. The main audience for the reports will be UNDP senior management and Facility management at headquarters, as well as UNDP at regional and country office levels. It is expected that the findings of these reports will inform the design of a new phase of the Facility.
1. Evaluation of the establishment of the Facility, as per the project document.
This report will specifically assess the activities related to operationalizing and establishing the Facility, as detailed in the project document. The focus of the assessment will be on the first two years of the Facility, corresponding with the term of the agreement with Fortis as the Facility’s financial partner.
This report will assess the following: (1) Project document design. - Review the original project document’s objectives, outcomes and outputs, and assess the quality and appropriateness of these items.
(2) Project document implementation. - Review the implementation of the project, with a focus on the management of the project, and the quality and timeliness in achieving the objective, outcomes and outputs set out in the project document.
- Identify factors that have affected project implementation and the responsiveness of project management to adapt and implement changes in execution.
In addition of an assessment of the above issues, the report is expected to also have a section on recommendations. This report will not address the strategic issues related to the Facility, nor the broader impact of the Facility, as this will be addressed in the complementary, second report.
The evaluation approach in the report will be guided by UNDP’s corporate evaluation policies.
2. Review of the Facility’s strategy and operational model
This report will analyze the strategic and operational model of the Facility in light of its performance during the period of the Fortis agreement. It will involve a rigorous and systematic assessment of what has and has not worked with the Facility, and why, as well as any unintended outcomes of the Facility. This assessment should be performed in the context of the carbon markets, development in general and the activities of other organizations (both private and public-sector) acting in carbon finance.
The report will assess the following: (1) The Facility’s strategic context and value. - An assessment of the Facility’s original mission and targets.
- An assessment of the role of the Facility’s within UNDP, including its fit with UNDP’s other climate change activities and its contribution to UNDP’s strategic objectives;
- An assessment of the validity and relevance of the Facility’s approach in the evolving (current and expected post-COP15) context
(2) The Facility’s operational model. An assessment of the Facility’s operational model and the quality, efficiency and impact of its operations. Aspects to be addressed may include: - The Facility’s partnership with a financial services provider.
- The Facility’s funding and its financial sustainability via the cost recovery fee.
- The Facility’s service offering including competitiveness with comparable service providers
- The Facility’s organizational structure, staffing and staff capability
- The Facility’s operational approach, for example its due diligence requirements, project sourcing, or interactions with third parties such as consultants or DOEs
- The Facility’s mix of project types and geographic distribution in its portfolio
A key component of this report will be a section on recommendations, drawing on the findings of the review, and including detailed strategic and design considerations for any future phases of the Facility.
Methodology
The evaluation methodology will rely on three main elements:
(1) Desk review of documents, including the project document, the RFP for the selection of the financial services provider, the Facility Agreement with Fortis bank, project documentation, bi-annual reports to the MDG Carbon Board, UNDP’s climate change strategy
(2) Site visits, to encompass a. 2 visit to UNDP HQ in NY, - first, for an initial briefing by Facility management and meetings with NY-based members
- second, to present the draft report to the Facility management
b. 1 visit to the UNDP Regional centre in Bratislava, for interviews with Bratislava-based team members
c. 1 possible visit to a project site in Central America. To be determined during finalization of work plan.
(3) Interviews with key project stakeholders including: a. individuals involved in project implementation: MDG Carbon team at management, central team, regional and country office level
b. project beneficiaries: Project proponents
c. partners: Fortis Bank representatives.
Timing and Outputs
The exercise should begin in early October 2009 and last approximately 4 weeks. Specific scheduling, such as for an initial desk review of documents, site visits, and interviews, as well as for delivery of outputs, will be agreed at the outset of the consultancy.
The key outputs will be: - A first draft of the report and 1 hour presentation of the draft report to MDG Carbon management, 3 weeks into the exercise.
- A final draft of the report 4 weeks into the exercise
Form of Consultancy and Budget
UNDP invites suitably qualified parties, either as individuals or as a team, to perform each or both of the reports outlined above.
Interested parties should submit a proposal with a lump sum estimate for consideration, assuming 25-30 days work for both of the reports outlined above.
Travel expenses should not be part of the proposal and will be reimbursed separately. |
