INTRODUCTION TO GGGI

The Global Green Growth Institute (GGGI) is a treaty-based international, inter-governmental organization dedicated to supporting and promoting strong, inclusive and sustainable economic growth in developing countries and emerging economies. To learn more please visit about GGGI web page.

BACKGROUND INFORMATION

Uganda has been ranked one of the carbon market frontrunners in Africa, with a total of over 33 million tonnes of carbon credits issued under the Clean Development Mechanism (CDM) and Voluntary Carbon Market (VCM) standards. Section 9 of the National Climate Change Act provides for participation in climate change mechanisms which include compliance emissions trading mechanisms, voluntary emissions trading mechanisms, non-market approaches and any other mechanisms as may be prescribed. To actualize this, Uganda is establishing its regulatory framework to participate in carbon markets.

Further, Section 21 of the Act provides for developing regulations setting out procedures for accessing the financing from the climate change mechanisms referred to in Section 9 of the Act. In complement to the Carbon Markets Guidelines and Regulations that are being developed under the leadership of the Ministry of Water and Environment, the Ministry of Finance, Planning and Economic Development is developing a fiscal framework to guide on the financial aspects of the carbon market guidelines. Key to this process is the determination of appropriate fee levels using evidence based and analytical tools that can effectively internalize socio-economic objectives, national climate ambition and at the same time keep private sector incentives strong.

The Global Green Growth Institute (GGGI) in partnership Ministry of Finance, Planning and Economic Development, Climate Finance Unit (MoFPED-CFU) with funding from European Union through ‘Support Program to Enhance Access and Retention of Climate Finance (SPEAR-CF)’’ under Outcome 3: International Carbon Markets Accessed by Uganda plans to start work to operationalize Article 6 of the Paris Agreement in the country. The Spear-CF project is designed to address the financing gap hindering climate action initiatives in Uganda. Its primary aim is to improve the accessibility and retention of climate finance within the Uganda by tackling key challenges posed by climate change. Under workstream 6, the project seeks to assist in the continued development of the carbon markets fiscal framework, which will be integrated into the national Carbon Markets Regulations and Guidelines. The framework will be developed by the Climate Finance unit under the Ministry of Finance Planning and Economic Development (MoFPED), in coordination with the Ministry of Water and Environment (MoWE).

Against this background GGGI is seeking the services of an individual consultant to lead the analysis and determination of appropriate levels for specific fees outlined in the fee schedule under the carbon market regulations. The consultant will ensure that the proposed levels are fair, sustainable, and aligned with the objectives of the regulation, balancing market participation with adequate regulatory oversight.

OBJECTIVE/PURPOSE

The primary objective of this assignment is to assist the Ministry of Finance, planning and Economic Development in determining appropriate fee levels for specific fees that will be integrated within in the carbon market regulations’ fee schedule. This work is essential to ensure that carbon market mechanisms are effectively managed, incentivizing participation, while ensuring that they contribute to socio-economic development and enhance climate ambition. In addition, it will serve as a basis for establishing fee levels and help to facilitate future adjustments if needed, thus securing fiscal sustainability while enabling future market evolution.

SCOPE OF ASSIGNMENT

The Individual Consultant shall, with the approval of MoFPED-CFU and MoFPED-Macro-economic department and under the supervision of GGGI, undertake the following:

• Identification and development of relevant evidence-based tools to model and estimate the suitable fee levels
• Reviewing the draft carbon markets fiscal frameworks and regulation to select the key fee elements that require determination.
• Conducting a comparative analysis of fee structures and levels in the Eastern Africa region to understand among others: their approaches for pricing and fees and their benefit sharing mechanisms; what has gone well, areas of improvement, and utilise this information to inform the findings of the analysis.
• Consultations and where possible interviews with relevant stakeholders, including policymakers, market participants, and other experts, to gather insights on fee levels and considerations. It will be very important to find a balance between fees/levies that are high enough so that the government is adequately compensated, but also not too high to disincentivise project developers from investing. Thus, the fee structure should optimise the balance between marginal benefits and marginal damages of climate change in Uganda.
• Developing recommendations for appropriate fee or levy levels for each relevant fee element and benefit sharing arrangements, considering market conditions, regulatory and macro-economic objectives goals. Beyond fee levels, the recommendations on potential impact of exemptions, penalties and waivers and use of proceeds should be provided.
• Providing a rationale for each recommended fee level, including any assumptions or methodologies used in the analysis.
• Presenting findings and recommendations to the MoFPED-CFU, MoFPED Macro-economic department and relevant stakeholders.

The deliverables shall be submitted as indicated below.

• The Consultant shall submit the Final Report which should reflect the outcome of all activities prepared by the consultant. The report should also give recommendations for further activities to be carried out in order to ensure long-term sustainable development of the measure.
• All relevant technical papers, reports, and other documents prepared from the start to the end of the assignment shall be attached to the Final Report.
• The Consultant shall submit the report in both hard copies and electronic versions readable by a Microsoft Office application.
• All outputs must be in English. In addition, the Consultant may be required to submit the outputs in other languages.
• Final report must be approved by the MoFPED-CFU with the agreement of the GGGI. The Consultant shall consider the comments and necessary revisions proposed. Within 14 days from the receipt of the comments or modification proposal from the MoFPED-CFU and GGGI, the Consultant shall prepare and submit the final versions of the report.

1) Education:

Advanced university degree (PhD preferable) in Climate Change, Environmental economics public finance, taxation, climate finance, economic policy, international development, engineering or a related discipline is required. A combination of relevant academic qualifications and additional experience may be accepted in lieu of an advanced degree.

2) Experience:

1. At least 8 years of professional experience in the field of economic policy research, fiscal policy, policy advice and/or scientific research in the field of economics, with a bias on economic dimensions of climate change.
2. At least 3 years of professional experience in the development and use of decision making and evidence-based tools including but not limited to macroeconomic models, integrated models, etc.
3. Good understanding of Nationally Determined Contribution (NDC), climate mitigation and how these relates to Article 6 of the Paris Agreement and carbon markets in general.
4. Working knowledge on design and analysis of fee structures, levies, or taxes within market-based frameworks.
5. Strong analytical skills and the ability to synthesize complex information.
6. Experience in day-to-day engagement with government ministries and agencies, ideally in developing countries.
7. An excellent command of spoken and written English required.
8. Demonstrable use of PowerPoint or similar tools to engage and educate others in complex topics will be needed

*NOTE) Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment.