The consultant is required to identify up to ten possible investment opportunities in climate-related adaptation and resilience with high-level financial and non-financial data for shortlisting by UNEP FI and UNDP. The consultant is then expected to further develop the shortlisted 5 investment opportunities, including financial and non-financial data, metrics and modelling. The consultant is also expected to identify and map relevant institutions that could be interested in supporting, marketing and financing the shortlisted investment opportunities. Finally, the consultant will develop pitches for each of the shortlisted investment opportunities to be presented at ACRIF and 2 other relevant private sector roundtables and/or public/private marketplace forums.
The hosting institution will be UNEP FI, in close liaison with UNDP. The consultant will coordinate between all the relevant project partners, as well as identifying and seizing opportunities to promote outreach and visibility of the project.
Working Remotely
The Contract will be over 3 months.
The United Nations Environment Programme (UNEP) is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and serves as an authoritative advocate for the global environment.
The overall objective of the UNEP’s Economy Division is to encourage decision makers in government, local authorities and industry to develop and adopt policies, strategies and practices and technologies that promote sustainable patterns of consumption and production, make efficient use of natural resources, ensure safe management of chemicals and contribute to making trade and environment policies mutually supportive. It promotes the development, use and transfer of policies, technologies, economic instruments, managerial practices and other tools that assist in environmentally sound decision making and the building of corresponding activities.
The United Nations Environment Programme Finance Initiative (UNEP FI) is a strategic partnership between the United Nations and over 400 banks, insurers and investors. For over 28 years UNEP FI has been shaping and driving the international sustainable finance agenda, setting global standards and growing a global network of leading financial institutions. Through its work-streams and regional activities, peer learning, methodology development, training and research, UNEP FI carries out its mission to help the financial industry align with and contribute to the Sustainable Development Goals and with that take on the crucial role it must play in achieving a sustainable future.
UNEP FI and the Middle East & North Africa region
UNEP FI is strongly engaged in the Middle East and North Africa, where the physical impacts of climate change pose a major challenge, particularly sea level rise, heat stress and water scarcity, which have dire consequences on food production and energy generation. Moreover, the region has a vested interest in the implementation of the sustainable development goals (SDGs); in particular those that help deal with the interlinked water-energy-food challenges, and goals that foster the Agenda 2030 in general.
The Sustainable Development Goals, the Paris Agreement on Climate Change, and the Sendai Framework on Disaster Risk Reduction have stressed that, for development to be sustainable and resilient to shocks, it must integrate climate change and disaster into short-term responses and long-term planning. Addressing climate change and meeting the SDGs requires mobilization of all resources and a gradual shift of financing models from “conventional” to “sustainable”.
SDG-Climate Facility Project
Against this background, multiple UN agencies (UNDP, UNEP FI, WFP, UN-Habitat, UNDRR), together with the League of Arab States and the Arab Water Council have initiated a new regional project (SDG-Climate Facility Project) that aims to enhance the capacity of regional and national institutions to address climate change in a way that brings benefits across multiple goals, while also reducing the impacts of conflict and crises. The project has three main aims: (i) to build climate security, (ii) to leverage climate finance and (iii) to focus at the country level, where we aim to leverage our expertise, as well as our global membership, to help deliver innovative approaches to climate finance in the Middle East and North Africa region.
The SDG Climate Facility project will culminate in establishing an SDG-Climate Facility as an independent entity that will continue to take forward initiatives and actions beyond the life of the project. It is expected to serve as a long-term platform that will help to address the complex and intertwined challenges of climate change, sustainable development and crisis (the nexus) in the region through regional and national actions. In other words, it is expected to bridge different agendas to enable maximum impact across different sectors. One of the main aims of the SDG-Climate Facility is to enable innovative finance and partnership models to catalyse investments to meet climate and sustainable development objectives, in a region characterized by different levels of fragility.
Arab Climate and Resilience Investment Forum (ACRIF)
The climate finance pillar of the SDG Climate Facility project is one of the key components of the regional project and currently includes activities led by UNDP and UNEP FI. Increasing risks and economic losses from climate change are creating a growing need for business models, technologies and investment that help countries manage these risks and to reduce losses. The SDG Climate Facility project, in cooperation with regional and international partners, the Islamic Development Bank (IsDB) and CEWAS, is in the process of organizing an Arab Climate and Resilience Investment Forum (ACRIF) to provide an open platform for bankable projects and companies in the Arab states to (i) pitch their busines models and investment opportunities; (ii) meet potential investors; and (iii) exchange new ideas with peers and stakeholders. UNEP FI’s network of signatories to the Principles for Responsible Banking (PRB) should contribute to the ideation, sourcing and development of potential investment pitches for the ‘dragon-den’ style investment day at ACRIF.
Climate Change Investment Specialist role
Under “Activity 3.3.7: Development of country climate investment opportunity case studies in select countries arising from the market study” of the SDG-Climate Facility: Climate Action for Human Security project, UNEP FI seeks to engage a Climate Finance and Investment Specialist who will primarily identify, nurture and develop a pipeline of investable deals based on both (i) return on investment; and (ii) return in terms of climate, resilience and human security benefits.
The consultant will:
(i.) Identify potential investment opportunities in the climate change adaptation and resilience sector (based on e.g. CBI/WRI’s Climate Resilience Principles, the Adaptation Solutions Taxonomy developed by The Lightsmith Group, or the EU Taxonomy) across members of the League of Arab States including, but not limited to, the network of financial institutions and organizations that have signed up to the Principles for Responsible Banking. UNEP FI will reach out to its membership with the aim of sourcing up to ten (10) potential investment deal concepts from its partners including, but not limited to, the network of financial institutions and organizations that have signed up to the Principles for Responsble Banking.The consultant will develop a template to support the assessment and shortlisting process of these up to ten (10) potential investment deal concepts, to arrive at a final set of three (3) investment deal concepts that the consultant will develop into fully-fledged pitches in time for the ACRIF (December 2021).
(ii.) Develop and refine financial models for three (3) specific potential investment opportunities/deals, to generate key financial data such as Return on Investment (RoI) or Internal Rate of Return (IRR) for equity and other investments, maturity and interest rate for commercial or concessional loans, and relevant information on the use of junior/senior financial guarantees to make specific investment deals viable;
(iii.) Support UNEP FI to develop and refine non-financial criteria for the specific investment opportunities/deals under consideration, in line with industry-standard environmental, social and governance (ESG) guidelines such as GRI, SASB / IIRC.
(iv.) Develop concise, neat and polished ‘pitches’ in the form of PowerPoint presentations for three (3) potential investment opportunities. The resulting pitches may be presented at private sector roundtables and public-private marketplace forums in the Arab region, including the Arab Climate and Resilience Investment Forum (ACRIF) to provide data-driven evidence demonstrating the economic viability in targeted market segments in the Arab States’, a region that entails relatively high perceived or actual risk to investors. The final pitches are expected to be 10-15 minutes in length with basic underlying financial models .
- Develop template to support UNEP-FI in requesting concepts/ideas for investable opportunities from among its network of organizations;
- Support the assessment and shortlisting of up to 10 (ten) concepts/ideas, to a final list of three (3) potential investment opportunities with high-level financial and non-financial data The investment opportunities should focus on climate-related adaptation and resilience, and be located in the member states of the League of Arab States, excluding GCC countries.
- Develop and refine financial modelling of three (3) shortlisted investment opportunities.
- Support UNEP-FI to develop and refine non-financial data for the three (3) shortlisted investment opportunities, including environmental, social and governance criteria, with a particular focus on climate resilience criteria.
- Develop fully-fledged ‘pitches’ for the three (3) shortlisted investment opportunities in PowerPoint format.
3.2 Specific tasks and responsibilities
(cover all aspects of work to be done, and do not use a table here)
Review and longlisting of climate adaptation and resilience-related investment opportunities
- Identify relevant adaptation and resilience-related investment opportunities across the League of Arab States region . In identifying these opportunities, UNEP-FI will engage with key national, regional and international stakeholders with support by the consultant who is expected to develop a template for a call for proposals to be launched by UNEP FI among its network; the consultant will also support the shortlisting of an initial set of up to ten (10) opportunities to a final list of three (3) investment opportunities that will be developed into fully-fledged pitches.
- Develop high-level financial and non-financial data and criteria. Adaptation and resilience projects should be identified on the basis of well-known industry-standards such as the Climate Bond Initiative / World Resource Institute (CBI/WRI)’s Climate Resilience Principles, Lightsmith Group’s Adaptation Solution Taxonomy, or the EU Taxonomy.
Development of financial modelling of shortlisted investment opportunities
- Financial models tailored to each specific investment opportunity in aforementioned sectors, for the three (3) shortlisted investment opportunities, to generate the economically most viable finance package or blended finance model to reduce actual or perceived risks to investors.
- Support UNEP-FI in identifying non-financial criteria and data for the shortlisted investment opportunities in line with industry-standard environmental, social and governance (ESG) guidelines such as GRI, SASB / IIRC.
Development and presentation of ‘pitches’ for shortlisted investment opportunities
- Development of ‘pitches’ which include the key financial data resulting from the financial models, as well as key non-financial data,
- Proposing a financial model tailored to each of the three (3) specific shortlisted investment opportunities to generate the economically most viable finance package or blended finance model to reduce actual or perceived risks to investors.
- Presenting the pitches at the Arab Climate and Resilience Investment Forum (ACRIF) as well as two other private sector roudtables or public-private marketplace forums (to be confirmed).
Communications & outreach:
• Engage and develop partnerships with regional and international financial institutions, and government stakeholders that could promote, market and finance the proposed investment opportunities.
• Engage with organisations hosting private sector-round tables, public-private marketplace forums and the organising committee of the Arab Climate and Resilience Investment Forum (ACRIF).
• Contribute to UNEP FI’s online knowledge platform for the Arab region, to help disseminate and make available information on climate-related project investing.
The consultant shall be under the overall supervision of the Head of UNEP Finance Initiative and report directly to the Climate Change Lead, UNEP FI, and engaging with the UNDP Project Manager/Chief Technical Advisor, SDG-Climate Facility project.
Skills: Proven knowledge in investment deal preparation is required, preferably in climate change-related investments. Skilled in financial modelling and asset structuring, as well as applying non-financial, climate-related, models and metrics to investments. Ability to juggle varied activities in an organized and timely manner; Excellent communication skills (listening, spoken and written), particularly in pitching financing proposals to financial institutions, project developers and other relevant stakeholders. Strong interpersonal and relationship management skills. Ability to translate new and diverse ideas and concepts into tangible outcomes, to identify and prioritize common interests in a diverse set of points of view. The incumbent is expected to work independently with minimal supervision and must have significant latitude to be self-directed and be highly motivated. Problem solving skills are desirable. Experience in engaging with financial institutions and project developers in the MENA region is desirable.
Academic Qualifications: A Master’s degree in finance, business administration, climate change, energy, environment, social sciences or other closely related field.
Experience: Seven years of previous relevant working experience in finance or private sector investments preferably with at least 5 years’ experience supporting climate change related investment deal preparation in developing countries. Excellent quantitative skills.
Language: Languages: Fluency in written and oral English is required. Knowledge of other United Nations languages is an asset.
THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.