The purpose of this consultancy is to develop and implement the Panama’s Sustainable Finance Taxonomy, focusing on climate change objectives. The development of Panama’s Sustainable Finance Taxonomy will consider the LAC Taxonomy Common Framework, the Central America Taxonomy, and the Common Ground Taxonomy of the International Platform of Sustainable Finance (IPFS) with the aim of ensuring the interoperability of the national taxonomy globally.
Specifically, under the direct supervision of the Programme Management Officer on Sustainable Finance for the LAC region, in close coordination with the Project Coordinator, the Consultant on Sustainable Finance Taxonomy has the overall responsibility for executing the Project’s outcome 2.4 “Strategies for transforming and attracting private sector investment for low emissions and resilience developed and being used”, as defined in the approved project document, and particularly the following outputs:
Output 2.4.1. Workplans and constitutive arrangements for the Taxonomy Committee within the Panama’s Sustainable Finance Working Group (GTFS) established to develop and implement the Panama’s sustainable finance taxonomy;
Output 2.4.2 The sustainable finance taxonomy is developed, piloted, and endorsed by the GTFS’s Taxonomy Committee and;
Output 2.4.4 Capacity within financial supervisors and regulators, and financial institutions is built on sustainable finance taxonomy (including green labeling of financial products and green bonds).
The Consultant on Sustainable Finance Taxonomy will work in close coordination with the GTFS’s Taxonomy Committee to conglomerate the relevant financial stakeholders needed for the development and implementation of the Panama’s Sustainable Finance Taxonomy, and with the technical roundtables created under the governance structure for the taxonomy development.
In addition, the Consultant on Sustainable Finance Taxonomy will work in close coordination with the PCU, which will coordinate and organize the required high-level and technical discussions for the Panama’s sustainable finance taxonomy development. The PCU will support the Consultant on Sustainable Finance Taxonomy in coordinating the governance structure defined for the national sustainable finance taxonomy development and implementation (steering committee), organize the sectoral discussions (technical roundtables), and public consultation, review and finalization of documents, among others. The
Consultant on Sustainable Finance Taxonomy will undertake the following activities:
- Support the delivery of the Output 2.4.1. Workplan and constitutive arrangements for the Taxonomy Committee within GTFS established to develop and implement the Panama’s sustainable finance taxonomy by:
o Preparing on the first draft of the GTFS Taxonomy Committee’s workplan and constitutive arrangements (governance structure) for developing the national sustainable finance taxonomy, including specific stakeholders, roles, milestones, and constitutive arrangements for its implementation.
o Identify the technical and financial industry reviews and public consultation process that should be followed for succeeding, in terms of relevance and flexibility.
o Organizing, in close coordination with the PCU, a workshop for the GTFS’s Taxonomy Committee, in which the workplan and the constitutive arrangements are presented;
o Developing a final workplan and constitutive arrangements (governance structure) for developing and implementing the national sustainable finance taxonomy, considering all the comments received by the GTFS’s Taxonomy Committee.
- Support the delivery of the Output 2.4.2. The Panama’s sustainable finance taxonomy is developed, piloted, and endorsed by the GTFS’s Taxonomy Committee by:
o Developing the first draft of the Panama’s sustainable finance taxonomy for climate change objectives (mitigation and adaptation), for which the following will be considered, but not limited:
¿ Revise and further comment on the mapping landscape of Panama’s national context prepared by the Ministry of Environment to give recommendations for the development of the first draft of the sustainable finance taxonomy for climate change objectives.
¿ Review of existing national policies and conduct interviews, surveys, and focus groups, and/or use secondary search for data collection within the country to complement the analysis provided by the Ministery of Environment.
¿ Consider the Common Framework of Sustainable Finance Taxonomies for LAC as a reference for the Panama’s sustainable finance taxonomy development.
¿ Align the development process of the Panama’s sustainable finance taxonomy for climate change objectives with the development process of the Central America’s sustainable finance taxonomy (sub-regional taxonomy), which includes Panama, led by the CCSBSO, considering that the sub-regional taxonomy only focuses on activities across all sectors that are fast-track (activities that have an international reference in other taxonomies)
¿ Define the strategic and specific objectives of the Panama’s sustainable finance taxonomy aligned with the country’s international commitments, national policies, among others.
¿ Identify and prioritize economic sectors that have an importance for climate change objective (mitigation and adaptation) in Panama. The prioritization of economic sectors must consider quantitative and qualitative evaluations that respond to the defined objectives of the sustainable finance taxonomy (such as the history of GHG emissions by sector, the sector's contribution to the country's GDP, among other variables).
¿ Identify the economic activities to be grouped in each identified economic sector, using industry codes (e.g. ISIC, NACE) as a reference point for classifying sectors/activities (sectors/activities that substantially contribute to the climate change objectives, transition sectors/activities, enabling sectors/activities, and low-impact sectors/activities).
¿ Define the eligibility criteria and impact indicators for each prioritized economic sector/activity (science-based metrics and thresholds that determine the eligibility of an economic sector/activity under the Panama’s sustainable finance taxonomy).
¿ Ensure the interoperability of the Panama’s sustainable finance taxonomy globally, considering the IPSF’s Common Ground Taxonomy for harmonization purposes.
¿ Identify, evaluate and include any other technical and non-technical component that should be considered in the methodology for the Panama’s sustainable finance taxonomy.
¿ Write the first draft of the Panama’s sustainable finance taxonomy and the high-level policy brief of the national critical roadmap to follow by decision-makers in Panama, including the design of a PowerPoint presentation of the first draft of the Panama’s sustainable finance taxonomy for climate change objectives to be presented within the technical roundtables.
o Assist the PCU in the creation of the technical roundtables for discussing and developing the eligibility criteria and requirements per economic sectors/activities for Panama’s sustainable finance taxonomy
o Identify the intended users and beneficiaries of the taxonomy, their roles and, ideally, their respective responsibilities in the implementation and use of the taxonomy to be included in development governance.
o Developing the second draft of the Panama’s sustainable finance taxonomy for climate change objectives, which incorporates the review from the technical roundtables:
¿ Conduct workshops per technical roundtable for discussing and developing the eligibility criteria and requirements for Panama’s sustainable finance taxonomy.
¿ Incorporate the recommendations received by the technical roundtables into the working document of Panama’s sustainable finance taxonomy.
o Assist the PCU and country authorities in conducting an open consultation of the sustainable finance taxonomy to receive comments/feedback from relevant stakeholders, incorporate the comments/feedback, and develop the final taxonomy document ready to be published and adopted by country authorities.
o In coordination with the LAC Sustainable Finance Regulation Expert, provide recommendations for financial supervisors and regulators and policymakers to define the governance mechanism for the sustainable finance taxonomy implementation, monitoring, and updating, and to define the taxonomy’s reporting system framework.
o Assist the LAC Sustainable Finance Regulation Expert in providing recommendations for financial supervisors and regulators to develop the financial regulation and policies required to implement the Panama’s sustainable finance taxonomy across de financial sector.
o Develop a tool (Excel) to help users of the Panama’s sustainable finance taxonomy to apply it to their own portfolios.
o In coordination with the UNEP FI capacity building experts, test and evaluate the implementation of the Panama’s sustainable finance taxonomy and its tool to banking entities’ portfolios and processes:
¿ Establishing a timeline and next steps to take over the implementation of the sustainable finance taxonomy and its tool for banking entities’ portfolios and processes (Pilot & Evaluation).
¿ Design and implement an online outreach programme – capacity building - on Panama’s sustainable finance taxonomy for the banks participating in the pilot, as part of Output 2.4.4.
¿ Asses how the banking sector incorporates green loan classification into operational management (base line situation analysis).
¿ Develop and publish at least 3 case studies with banks to test the Panama’s sustainable finance taxonomy and its tool to core banking products and portfolio for green labelling and disclosure purposes.
¿ Building on the above tasks, develop a guidance document for banks on the practical implementation of the sustainable finance taxonomy and its tool.
o Develop a concept note that includes a business model and a budget to create an online Taxonomy-aligned reporting system under the framework of the National Climate Transparency Platform, as well the data system of the Superintendencies.
- Support the delivery of the Output 2.4.4. Capacity within financial supervisors and regulators, and financial institutions is built on sustainable finance taxonomy (including green labeling of financial products and green bonds) by:
o Design and implement an online training programme on Panama’s sustainable finance taxonomy for financial institutions, policy makers, regulators, supervisors and stakeholders interested in better understanding the application of the sustainable finance taxonomy.
Outputs
Develop and agree the GTFS Taxonomy Committee’s workplan and constitutive arrangements for developing and implementing the Panama’s sustainable finance taxonomy;
The sustainable finance taxonomy is developed, piloted, and endorsed by the GTFS’s Taxonomy Committee
Capacity within financial supervisors and regulators, and financial institutions is built on sustainable finance taxonomy (including green labeling of financial products and green bonds).
Deliverables
Product 1. One (1) workshop report related to the presentation of the workplan and constitutive arrangements for developing and implementing the Panama’s sustainable finance taxonomy to the GTFS Taxonomy Committee. The report will include evidence of stakeholder participation, agreements achieved, next steps agreed, first draft of the workplan and constitutive arrangements presented, other materials, documents and presentations used
Product 2. One (1) agreed workplan and constitutive arrangements related to the GTFS’s Taxonomy Committee for the sustainable finance taxonomy development, including specific stakeholders, roles, milestones, and constitutive arrangements for its implementation.
Product 3. First document report of the sustainable finance taxonomy which contains: strategic objective, national climate change priorities, methodology, prioritization of economic sectors, technical annexes per eligible economic sectors to meet national climate mitigation and adaptation objectives, and other relevant non-technical components
Product 4. One (1) constitutive agreement with the number of technical roundtables and their leaders/members by economic sector/subsector and by the financial industry entities.
Product 5. One (1) workshop report with evidence of stakeholder participation, list of participants disaggregated by gender, and aide-mémoire of the technical discussions (supervisory committee, technical roundtable processes and financial industry revision)
Product 6. Second document report of the sustainable finance taxonomy which incorporates the review from the technical roundtables and the financial industry revision
Product 7. One (1) report that includes evidence of online publication of the public consultation and the comments and feedback received, same as the responses to the comments.
Product 8. Final document report of the sustainable finance taxonomy ready to be published by the local authorities.
Product 9. One (1) report with strategic recommendations for financial regulators and supervisors, and policymakers to define the governance mechanism for the sustainable finance taxonomy implementation, monitoring, and updating, and the definition of the taxonomy’s reporting system framework.
Product 10. A Tool (Excel), accompanied by a short technical user manual, to help users of the taxonomy to apply it to their own portfolios.
Product 11. One (1) outreach programme syllabus, including all materials and guidelines used, and list of participants. This capacity building programme will be for banks participating in the testing phase and will be focus on the Panama’s sustainable finance taxonomy implementation (at least 3 banks)
Product 12. One (1) report with the results of the testing phase of the sustainable finance taxonomy and its tool to core banking products, including a diagnosis analysis assessing how the banking sector incorporate green loan classification into operational management (base line situation analysis)
Product 13. One (1) guidance document for banks on the practical implementation of the sustainable finance taxonomy and its tool, including case studies and recommendations for further scale-up.
Product 14. One (1) concept note that includes a business model and a budget to create an online Taxonomy-aligned reporting system under the framework of the National Climate Transparency Platform, as well the data system of the Superintendencies.
Product 15. One (1) training programme syllabus, including all materials and guidelines used, and list of participants. This training programme will focus on future users, such as financial institutions, financial supervisors and regulators, Panama’s National Bank, and policymakers of the sustainable finance taxonomy methodology and tool; for the application and further scale-up (assess to follow a training of trainers approach)
Home-based
24 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 the strategic partnership between the United Nations and over 450 banks, insurers, and investors. UNEP FI also brings together a large network in the Latin America and the Caribbean (LAC) region of over 130 banks, insurers, and investors. For 30 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.
The UNEP Latin America and the Caribbean Office (UNEP LACO), located in Panama City, works closely with the 33 countries of the region and its activities are integrated into the Medium Term Strategy and the Programme of Work approved by the United Nations Environment Assembly (UNEA).
UNEP LACO & UNEP FI support LAC member states to develop the appropriate frameworks to steer capital flows into environmentally sustainable investments, recognizing that sustainable finance has a key role to play in the LAC Green Transition. UNEP LACO & UNEP FI support LAC policymakers, central banks, financial supervisors and regulators, and financial institutions in developing and supporting implementation of national taxonomies and disclosure standards and methodologies and tools to map, quantify, and disclosure climate-related risks, aligned with the Task Force on Climate-related Financial Disclosure (TCFD) and the Task Force on Nature-related Financial Disclosure (TNFD).
In 2022, the Green Climate Fund (GCF) board approved the GCF Readiness Proposal “Aligning financial flows of the financial sector in Panama with the Paris Agreement climate change goals”. The National Designed Authority (NDA) in Panama, the Minister of Environment, has nominated UNEP to be its Delivery Partner for this proposal, where the funds will be disbursed from the GCF to UNEP to undertake the Readiness grant implementation, in close coordination with UNEP FI offices in Geneva and Brussels and UNEP FI LAC Network, with the NDA and others relevant country authorities involved in the agreed project governance mechanism.
This GCF Readiness aims to provide the guiding structure for the financial sector to: (1) mobilize private capital flows towards a low-emission and climate-resilient economy and; (2) strengthen the resilience of the financial system to climate-related financial risks. Mainly, the GCF Readiness seek to build the country capacity for: (1) national sustainable finance taxonomy development and implementation and; (2) the identification, measurement and disclosure of climate-related financial risks, aligned with TCFD recommendations.
A Technical Team (TT) will be established under the direct supervision of the Programme Management Officer on Sustainable Finance for the LAC region, in close collaboration with the Project Coordination Unit (PCU). The TT will be formed by contracted individual consultants, who will develop specific deliverables under the project outputs on time and with high quality. Due to the scope of the deliverables, the TT will closely work with the technical roundtables and the two working groups to receive technical guidance and hence, to pilot and validate the methodologies and tools developed under the GCF Readiness Proposal in Panama.
The TT includes a Consultant on Sustainable Finance Taxonomy.
UNEP LACO & UNEPFI are looking for a Consultant on Sustainable Finance Taxonomy for the GCF Readiness Project “Aligning financial flows of the financial sector in Panama with the Paris Agreement climate change goals”.
Under the direct supervision of the UNEP Programme Management Officer on Sustainable Finance for the LAC region, in close coordination with the Project Coordinator, the Consultant on Sustainable Finance Taxonomy has the overall responsibility for executing the Project’s outcome 2.4 “Strategies for transforming and attracting private sector investment for low emissions and resilience developed and being used”, as defined in the approved project document, and particularly the following outputs:
Output 2.4.1. Workplan and constitutive arrangements for the Taxonomy Committee within the Panama’s Sustainable Finance Working Group (GTFS) established to develop and implement the Panama’s sustainable finance taxonomy;
Output 2.4.2 The sustainable finance taxonomy is developed, piloted, and endorsed by the GTFS’s Taxonomy Committee and;
Output 2.4.4 Capacity within financial supervisors and regulators, and financial institutions is built on sustainable finance taxonomy (including green labeling of financial products and green bonds).
The Sustainable Taxonomy Specialist Consultant for the GCF Readiness Project will be home-based.
ACADEMIC:
• Master's degree in Environmental Management, Engineering, sciences, or a related field is mandatory.
PROFESSIONAL:
• At least 7 years of solid experience, technical specialization and proven experience working on sustainable finance, with special focus on sustainable taxonomies in LAC, is required.
• 3 years of working experience in the analysis and formulation of financial strategies and/or macroeconomic policies, is required.
• 2 years of experience with integrating sustainable and climate knowledge in the financial sector for climate mitigation and adaptation, is required.
• Experience working with Latin American and Caribbean countries, is required.
• Experience in supporting policy and regulatory formulation for macroeconomic and financial stability is required.
• Experience in developing high-quality research based on interviews, focus groups, surveys, and secondary research, is desirable.
• Experience in analysing net-zero and climate-resilient economy topics from a national/regional/global perspective, with the ability to offer practical policy advice on issues based on the LAC region reality and context, is desirable.
• Ability to deliver at speed and to adapt to client / country needs
SPECIAL KNOWLEDGE AND SKILLS:
• Proficiency in using Microsoft Package (Microsoft Teams, SharePoint, OneDrive, Word, Excel, PowerPoint) collaborative platforms (i.e., Teams, Google Drive) and virtual meeting platforms (i.e. Webex, Zoom, etc.) is required.
SKILLS:
- Excellent verbal, written, and interpersonal communication skills;
- Ability to present complex issues in simple and clear manner;
- Ability to communicate trends and impacts to high-level and mid-senior level management;
- Ability to consult, build, and maintain solid working relationships in and outside of immediate department;
- Demonstrates integrity and ethical standards;
- Ability to work under pressure and deliver high quality results on time
Fluent in English and Spanish is required.
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.