Terms of Reference

Establish Sustainable Community based Biodiversity Financing and incentive Mechanism

Payment for Ecosystem and Registry and selling of carbon Credit

In the Community-Based Biodiversity Restoration and Conservation (COMBIO), Project areas

• CONTEXT

The impacts of climate change, land degradation, and biodiversity depletion are already being felt in Rwanda. COMBIO project Proposal stated that the vulnerability analysis was made and depicted that the Eastern Province is the most vulnerable area in Rwanda, while this province serves as the ‘bread basket’ of the country with the largest share of arable land, national parks, protected areas, and sanctuaries. It is understood that biodiversity degradation is exorbitant by climate change, with negative consequences for the community lively hood. Hence, climate change impact, drought, land degradation, and associated biodiversity depletion are very critical to the country’s food security.

However, effective climate adaptation and mitigation-based ecosystem management, and the introduction of a sustainable climate finance system can make an important contribution to both climate-change modification and biodiversity restoration. Consequently, conserving and sustainably managing biodiversity is critical to addressing climate change.

Under the above context, the Government of Sweden through the Swedish International Development Agency (SIDA) is supporting the Government of Rwanda by reducing vulnerability to climate change through enhanced Community-based Biodiversity conservation in the Eastern Province of Rwanda (COMBIO) project. Among others, this project aims to tackle the barrier of lacking incentivize frameworks and financial inaccessibility for the promotion of biodiversity conservation.  

To facilitate this, In the Ministry of Environment (MoE) invited all key partners to the last Environment and National Sectorial Working Group session held in June 2022, to support the government to create strong readiness at the country level and foster the carbon market as an innovative way of accessing sustainable climate finance and incentive mechanisms.

Some ongoing initiatives in Rwanda are linked to the carbon market and Sustainable Climate Finance (SCF). It is essential to harmonize the approaches and integrate the proposed solutions of each component (e.g. carbon credit registration, incentives funds, and, etc.) into one national consolidated and integrated system that is well-structured with clear modalities, procedures, and rules, in order to avoid the risk of having disconnected and divergent solutions with different scope areas.

Current initiative ongoings for instance: Some NGO projects (such as “Strengthening climate resilience of rural communities in Northern Rwanda’’.aka Gicumbi is having an ongoing community climate-funding project that was established by FONERWA as a Community Climate Adaptation Fund.

Under these contexts, in support of establishing Sustainable Climate Finance and Incentive Mechanisms (SCFIM), IUCN in collaboration with Rwanda Forestry Authority (RFA), Enabel, and FONERWA, is commissioning an assessment work, through an external consultant, that encompasses three major work packages areas, Payment for Ecosystem Services (PES), and the registration and selling of carbon credits.

(II) OBJECTIVES

The overall objective of the consultancy is to assess the  existing Sustainable Financial Incentives (SFI) initiatives,  identify and analyse new potential instruments, assess the policy and regulatory environment for sustainable finance, and Design an implementation plan and modalities for the most suitable mechanisms with clear steps, and procedures for the following key activities:

• Analyse possibilities of implementing Payment for Ecosystem Services (PES) schemes/mechanisms.
• Identify opportunity for a Voluntary Carbon Market (CM) within communities implementing CBRF, solicit requirements for the registry and selling of carbon credits  that are generated from Forest and Landscape Restoration (FLR) actions, and link it with CBRF  and PES
• Cross-cutting: assess the policy and regulatory framework and institutional arrangement enabling the rollout of sustainable financial incentives.

(III) SCOPE OF WORK:

3.1. WORK PACKAGE ONE:

• WORK PACKAGE ONE:

Develop Payment for Ecosystem Services (PES) mechanisms that  can strengthen CBRF

3.1.1. Major Tasks:

The consultant, in collaboration with IUCN (lead), Enabel, and RFA, has to first identify and map potential companies in the Eastern province that are currently benefiting from the ecosystem service and/or will be benefited from the project interventions.  Assessing, observing, verifying & mapping intervention sites that have an impact on ecosystem service is vital. This field assessment has to be analysed with the existing private companies with high PES potential in this region of Rwanda. First-hand stakeholder consultation including (FONERWA, REMA, and others) has to be conducted after field assessment and mapping.

Using the InVEST application, quantifying the ecosystem valuation should be an essential step.  Following the completion of the InVEST analysis, the consultant is required to quantify, value, and map the ecosystem services and build a “business case” for PES investment. If the scheme is feasible, organize lobby meetings with the identified potential companies and, IUCN, FONERWA, and other relevant stakeholders in Rwanda.

Depending on the results of the study and the discussion with identified potential private companies and stakeholders, pin out the necessary steps, principles, implementation guides, and procedures. If the entire above step is feasible and promotable, the consultant is expected to scrutinize the final agreement and bring it into an implementable PES scheme that substantiates CBRF in the COMBIO project areas. The final findings of the PES application should be validated together with the CBRF implementation study and application guide.

• Deliverables under PES:

The output of this study will be a detailed technical report with a summary brief, which captures the necessary steps, principles, implementation guides, and procedures to apply the PES as a supplementary source for CBRF in the project sites. The consultant must include at least the following:

• Synthesizing relevant experiences from Rwanda and other African countries
• scrutinize and synergize these experiences and bring into the implementable PES mechanism that substantiates CBRF
• After completion of the InVEST, subsequent valuation, mapping, and quantify the ecosystem services. Building a “business case” for PES investment
• Provide necessary steps, principles, implementation guides, and procedures
• Make stakeholder consultation assessment and mapping of potential private companies with high PES interest & potential.
• Conduct at least two consecutive meetings/mini-workshops with potential companies and recommend possible solutions on how to engage volunteer companies for  PES  and link with CBRF
• Validated PES application and implementation guide together with the CBRF implementation manual and application guide.

• WORK PACKAGE TWO:

Assess Feasibility for the Establishment of Mechanisms on Voluntary Carbon Market (VCM) scheme, Registry and Selling of Carbon Credits (RSCC), Registry of the National carbon market, and Training of Local Institutions:

Subtask 3.2.1: Assess feasibility for a Voluntary Carbon Market (VCM) scheme: Conduct remote sensing using satellite imagery datasets and necessary field data collection (with an explanation of sampling methodology to generate the required data, and GIS maps that help to assess the VCM scheme. In addition, depict carbon crediting assessment and Identification of the baseline scenario, the various carbon pools, and the predicted Emission Reduction (ER) credits generated by the project, which is defined by the applicable methodology.  Finally, develop a detailed and project-specific financial model based on various carbon pricing scenarios including carrying out sensitivity analysis.

Subtask 3.2.2: Estimation of Generated Carbon Credit (CC) from Community-based Biodiversity & FLR interventions: Conduct Ecological Survey and Carbon Stock Assessment (BESCSA). This survey should assess the carbon stock and carbon potential in all forest reserves and sanctuaries that are under COMBIO project areas. Mapping all the forests that can contribute to the CC, estimating the carbon stock within the project area, and assessing the conservation and restoration efforts that are required for the long-term health of both the forests and the diverse communities that live alongside them. Consider activities increasing carbon sequestration like tree planting, sustainable forest management, agroforestry, etc. sequestering C02, and reducing carbon credits. Finally, there is a need to produce specific designs to maximize the carbon dioxide credit generated per invested money on one hand, and on the other, identify community beneficiaries that are organized into well-differentiated cooperatives. Work out details of estimation and establishing mechanisms with a detailed national CC and sustainable financial system.

Subtask 3.2.3: Establishment of mechanisms on the National carbon market and registry: Establish mechanisms for the registry and selling CC in the project area. The issue of the carbon-offset registry should be based on a defined certification protocol. In line with this, the consultant should keep investigating the available carbon offsets in the marketplace. Hence, assess those carbon offsets that are purchased registries up to the withdrawal of credits to ensure that two purchasers shall not claim the same verified carbon reduction. The consultant must meet that the carbon credits create a monetary incentive for companies to reduce carbon emissions. For this, developing the C02 database system setting, which is linked to the Forest Management and Evaluation System (FMES), and assessing and diagnosing the sustainability of RSCC is required.

Subtask 3.2.4: Training of local institutions for selling CC: Organizing dedicated local institutions on the registration process, and selling carbon credits generated from community biodiversity and FLR actions. Identify training needs/gaps and provide training on the registry and selling of CC for dedicated local institutions that enhance and strengthen the CBRF and community-based biodiversity and FLR actions. This should serve as a second resource potential for the CBRF.  Develop a proper lesson plan to train identified local institutions. The lesson plan should link the registry and selling of CC with the CBRF.  After the lesson plan is validated, conduct two consultative and training trainers workshops that can enhance awareness and knowledge.

For all the above four sub-tasks, conduct two consultative and validation workshops for the approval of the inception and final report.

• Deliverables under Work package three:

A detailed technical report, which captures the necessary steps, principles, implementation, guides, and procedures to apply the above four subtasks as a supplementary source for CBRF in the project sites. The report should indicate all deliverables including :

• Detailed and project-specific VCM feasibility with financial model based on various carbon pricing scenarios including carrying out sensitivity analysis.
• Ecological Survey and Carbon Stock Assessment (BESCSA), assessed conservation and restoration efforts, and mapping all the forests that can contribute to the CC
• Specific designs /model to maximize the C02 credit
• Details of estimation and establishing mechanisms on the RSCC
• Identify and organize dedicated local institutions in the registry process
• Identified training needs and gaps and lesson plans to bridge the gaps
• Training of dedicated local institutions for the RSCC generated from community biodiversity and FLR
• Two consultative workshops that link the four subtasks with the CBRF
• Investigate available carbon offsets in the marketplace and assess carbon offsets that are purchased from registries
• Develop a C02 database system setting
• Conduct workshops for the approval of the inception and validation of the final findings.
• Pin out the Sustainability of financial incentive mechanisms

WORK PACKAGE THREE:

Assess the existing policy and regulatory framework and institutional arrangement enabling the rollout of sustainable financial incentives. The analysis will cut across all the other work packages and will analyze the existing and the required enablers for quick take up of the different sustainable financial incentive schemes.

• DELIVERABLE REPORTS &TIMELINE

The main deliverables of the assignment are those listed above under deliverables:

• PROFILE OF QUALIFICATION AND EXPERIENCE

The Consultant should be a qualified firm and should have demonstrated international experience, including in large developing countries Sustainable climate finance and incentive mechanisms, Particularly on Biodiversity based revolving funds, Payment for ecosystem and registry, and selling of carbon credit areas.

The lead of the consultant firm should have at least MSC in the above-related discipline with a minimum of 10 years of experience conducting at least five proven similar assignments with a similar subject/s in Africa in general and in particular in Rwanda. The team in the firm should comprise relevant & experienced professionals with an appropriate mix of academic backgrounds, skills, and experience that are relevant to this work assignment.

The Consultant should have knowledge and exposure to Eastern Africa in the above area of expertise with an understanding of the socio-economic aspects of Rwanda. The Consultant must propose a team that has demonstrated its capability to carry out all aspects of the ToR, vis-a-vis similar donor-funded development projects in developing countries. Sufficient field time should be allocated by the key personnel to adequately tailor the proposed program plan to the local situation and for continuous dialog and consultation with relevant stakeholders.

The use of local partners is recommended to facilitate data collection, local coordination, and stakeholder consultations. The consultant is highly encouraged to propose a gender-diverse team.

Mandatory: Excellent writing skills in English are required

VI . REPORTING REQUIREMENTS   

The consultant team should report to IUCN copping RFA team. The Consultant shall submit the inception report within 15 calendar days, the interim report within 40 calendar days after the inception, and the final report within 75 calendar days after the contract is signed.

VII. TECHNICAL EVALUATION CRITERIA

The submitted Proposals will be evaluated against the following criteria:

VIII. EVALUATION OF TECHNICAL AND FINANCIAL PROPOSALS

The total score will be calculated as the weighted sum of both the technical score and the financial score. Please note that proposal with less than 70 percent for the technical evaluation will not continue with the evaluation.

The relative weights will be:

Technical:        70%

Financial:         30% 

APPLICATIONS

Interested consultants should email Technical and Financial proposals (in Rwandan Francs) detailing the proposed approach, methodology, and work plan for the assignment. The proposal should be accompanied by (i) detailed CVs outlining the consultant’s academic qualifications, previous relevant experience, contact information, etc.; (ii) documented evidence or reference of at least two similar completed assignments . 

Both proposals (Technical and Financial) One day after the application deadlines, applicants are requested to send the passwords to the same email used while applying. 

Applications entitled: “Establish Sustainable Community based Biodiversity Financing and incentive Mechanism; Payment for Ecosystem and Registry and selling of carbon Credit in the COMBIO Project -Full names of Consultants” should be sent electronically by email to Rwanda@iucn.org  with a copy to Valentine.Ikirezi@iucn.org  no later than 15^th June 2023 at 5:00 PM, local time in Rwanda. 

During the course of this procurement, i.e. from the publication of this RfP to the award of a contract, if you have any question, please address all correspondence and questions by email to the following IUCN  contacts: Tenaw TEDELA, email: Tenaw.Tedela@iucn.org and Marshall BANAMWANA, email: Marshall.Banamwana@iucn.org  .