Expression of Interest are invited for Papua New Guinea Inclusive Green Finance Taxonomy Sector Prioritization Consultancy PNG aims to reduce GHG emissions by 50% by 2030 and achieve carbon neutrality by 2050. Currently, most green capital comes from public and donor finances, with minimal private contributions. This puts considerable pressure on fiscal resources and validates the need to mobilize sustainable long-term private sector capital. If trends align with ASEAN expectations, the public-sector financing share is expected to drop to about 40% by 2030, placing more urgency on raising private sector contributions. Under the Inclusive Green Finance Project (IGFP), The Bank of Papua New Guinea (BPNG) has released an Inclusive Green Finance Policy (IGF Policy) and has already begun implementing the policy across a pilot set of financial institutions, through the Green Finance Centre (GFC). There is an appetite among the financial sector, its regulator and from climate-focused government agencies to transition towards developing new green products. The IGF Policy includes (i) a diagnostic report on PNGs financial landscape, (ii) a first version of the inclusive green taxonomy (the Green Taxonomy) which classifies and supports promotion of financial flows towards sustainable economic activities and (iii) an implementation roadmap to promote green finance. BPNG established the GFC who is responsible for implementing the policy and the roadmap. As part of the roadmap, there is a need to further develop the Green Taxonomy and create a better understanding and guidance on what qualifies as green finance. A well-defined and structured taxonomy will support better-informed, more efficient decision making, by clearly defining green assets. By doing so, new green investments will be able to contribute to achieving national environmental objectives. A green finance taxonomy can help financial actors and others determine which investments can be labeled green for their jurisdictions, thereby informing FIs green financing frameworks in selection, underwriting, decision-making and disbursement. Aligned with the ongoing work globally, IFC is providing technical support to the BPNG (through the Green Finance Centre) as part of a multi-stakeholder initiative to ensure tailoring of the Green Taxonomy to the Papua New Guinea context and alignment with best international taxonomy practices. The next version of the Green Taxonomy requires the development of technical screening criteria for priority sectors supporting PNGs climate change mitigation and adaptation objectives. As a preliminary step towards doing so, a prioritization analysis is required to determine the rank of the priority sectors on which to work. IFC seeks the involvement of an experienced consultancy to undertake this analysis. A. Scope of Work Sector Prioritization Based on the list of the following five priority sectors (i) agriculture, sustainable land use and marine resources (ii) renewable energy, (iii) energy efficiency, (iv) water and wastewater, and (v) clean transport, the consultant will apply an analytical scoring approach to recommend to the GFC the ranking of the five sectors in order of priority for technical screening criteria development. The consultant will also take into consideration the role of the mining and resource industry and provide a view on how this industry can be prioritized in the Green Taxonomy. The consultant will take into consideration the following, noting the potentially limited data available to do so: o GHG emissions, mitigation targets and national priorities o Contribution of the sector to GDP and economic growth potential (including value of sector to exports) o Investment needs and potential to attract green investment o Decarbonization potential o Estimated timeframe, level of effort and complexity to develop TSC, including initial consideration of whether to adopt, adapt or create new TSC. The consultant will also provide a high-level assessment and prioritization of the remaining in terms of timeframe, level of effort and complexity only of the following sectors in the Green Taxonomy, including guidance on appropriate categorization in light of best practice taxonomy structures: o Green buildings and urban development o Industry (Small industry improvements in Energy Efficiency) o Pollution prevention, waste and control o Information and Communications Technology o GHG Reductions and transition activities Other o Disaster Resilience, Recovery and Climate Change Adaptation - Other In addition, any other indicator that is applicable to the PNG context is encouraged to be considered. The consultant will leverage the existing draft criteria and information already developed in the first version of the Green Taxonomy which is available at https://www.gfcpng.com/wp-content/uploads/2024/02/GF-IGFP-Booklet.pdf. Recommendations should be based on analytical work already done by the World Bank Group, the Papua New Guinea Government, Green Finance Centre and other stakeholders (e.g, the Global Green Growth Institute) and consider the countrys overarching development priorities and national green industrial, environmental and climate policies, regulations and standards. For this task, the consultant is expected to draw on their knowledge and experience in taxonomy development and account for interoperability considerations, usability, and the G20 Sustainable Finance Working Group principles for sustainable finance alignment approaches. The consultant should consider other taxonomy reference points, while also considering specific national economic, sustainability and environmental circumstances of fragile states such as Papua New Guinea, including alignment with Paris Agreement and SDGs. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/4017/view.html
