RFP - Conduct a comprehensive needs assessment for developing a state climate finance facility for Karnataka

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As the lead United Nations agency on international development, UNDP works in 170 countries and territories to eradicate poverty and reduce inequality. We help countries develop policies, leadership skills, partnerships and institutional capabilities to achieve the Sustainable Development Goals. Our work is centred around six core development areas, known as our signature solutions: poverty and inequality, governance, resilience, environment, energy and gender equality.

UNDP’s mandate is to end poverty, build democratic governance, rule of law, and inclusive institutions. We advocate for change, and connect countries to knowledge, experience and resources to help people build a better life.

About the Proposal

Context of the Requirement: To engage a service provider to conduct a comprehensive needs assessment for developing a climate finance facility for the state of Karnataka.

Background:

UNDP has been working in India since 1951 in almost all areas of human development. Together with the Government of India and development partners, we have worked towards eradicating poverty, reducing inequalities, strengthening local governance, enhancing community resilience, protecting the environment, supporting policy initiatives and institutional reforms, and accelerating sustainable development for all. With projects and programmes in every state and union territory in India, UNDP works with national and subnational government, and diverse development actors to deliver peoplecentric results, particularly for the most vulnerable and marginalized communities. As the integrator for collective action on the Sustainable Development Goals (SDGs) within the UN system, we are committed to supporting the Government of India’s national development vision and priorities and accelerating the achievement of the SDGs for the people and the planet.

 UNDP India’s new Country Programme (2023-2027) builds on our prior work and aims to provide an integrated approach to development solutions in three strategic portfolios:

• Strong, accountable and evidence-led institutions for accelerated achievement of the SDGs;
• Enhanced economic opportunities and social protection to reduce inequality, with a focus on the marginalized.
• Climate-smart solutions, sustainable ecosystems and resilient development for reduced vulnerability;
• South-South cooperation, gender equality and social inclusion are promoted across the pillars. The programme is supported by a framework of renewed partnerships and blended finance solutions, strategic innovation and accelerator labs, and data and digital architecture.

Project Background and Description:

India has been actively involved in enhancing the country’s contribution to strengthening the global response to climate change by adopting low emissions growth pathways in its domestic developmental strategy. Adequate climate finance along with efficient programming and deployment of resources is integral for enabling the country to successfully achieve its climate goals. There is a need to build country capacity to use a wide range of funding sources for implementing multi-sectoral projects and improve effective financing through matching risk profiles with suitable financing instruments.

The Green Climate Fund (GCF) Readiness and Preparatory Support Programme supports developing countries to strengthen their institutional capacities, governance mechanisms, and planning and programming frameworks towards a long-term climate action agenda. The Readiness Programme provides grants and technical assistance aimed at enhancing the capacities of national institutions to efficiently engage with GCF. UNDP in partnership with the Ministry of Environment, Forest and Climate Change (MoEF&CC) is implementing the project India - Green Climate Fund Readiness & Preparatory Support – Phase III.

The first two phases of the project have been instrumental in introducing GCF and its mandate to key stakeholders of climate finance mobilization in India and making them aware of the various financial instruments that the Fund provides as well as development of projects in alignment with the GCF investment criteria. The objective of the third phase of the project is to institutionalize climate finance in the country by enabling direct access entities (DAEs), State Governments/Union Territories (UTs), and private sector entities to programme, channel and deploy climate finance effectively in alignment with national priorities at the national and sub-national levels.

One of the major activities of the project is to work with two state governments (Karnataka and West Bengal) to develop and institutionalize a climate finance facility in each of the states for catalyzing climate investments. The facilities will help the states identify and bring together different forms of capital to support a wide range of projects focused on mitigation and adaptation activities.

The climate finance facility will offer tailored financial solutions to projects, with its flexibility in deploying various forms of capital serving as a key strength. It will support a diverse range of projects spanning multiple priority sectors. Additionally, the facility will provide technical assistance to address risk and viability challenges, enhance project design, and improve the likelihood of securing investments. In the long run, it is envisaged that the climate finance mechanisms will be replicated in other states and help in effective deployment of climate finance across the country.

Objective:

The objective of this assignment is to undertake a comprehensive needs assessment to identify specific climate finance needs of the state of Karnataka to develop a state climate finance mechanism. A baseline will be created for the state with respect to current climate vulnerabilities & priorities, existing funding mechanisms, and gaps in climate finance flows. Based on this information, a blueprint for establishing a robust state climate finance facility will be developed to determine the most effective ways to mobilize and allocate funds for climate-related projects particularly by identifying suitable financial instruments and leveraging blended finance to de-risk investments and attract private sector participation in the sectors of priority.

Scope of work:

The Service Provider in consultation with MoEF&CC, Government of Karnataka, and UNDP will conduct a comprehensive study to guide the development of a climate finance facility for the state of Karnataka. This will entail the following activities:

• Conducting multi-stakeholder consultations with state government departments, banks, financial institutions, as well as civil society organizations (CSOs) to identify priority areas of investment for the state
• Conducting a comprehensive needs assessment for developing the state climate finance facility
• Developing a blueprint of the state climate finance facility
• Conducting a stakeholder validation meeting/workshop presenting the outcome of the needs assessment and the structure of the state climate finance facility

The service provider will provide the following outputs:

• An inception report highlighting broad framework for conducting the assessment, methodology and timelines
• A post-stakeholder consultation report that includes list of participants disaggregated by sex.
• A report identifying sources of funding matched to climate finance needs in the state
• A report of the state-specific needs assessment conducted for developing a climate finance facility including its structure
• A stakeholder validation report with list of participants disaggregated by sex.

Eligibility

The service provider should have:

• At least five years of experience in conducting climate finance assessments, designing climate finance facilities or climate investment frameworks at the state or national level.
• At least five years of experience in climate adaptation and mitigation finance, including understanding financial instruments such as blended finance, concessional finance, and risk mitigation strategies.
• At least five years of proven experience working with government agencies/ international organizations/ UN/INGOs on climate change or sustainable development projects.

Proposals are invited from Indian institutions/organizations only. Proposal submitted by Individuals will not be accepted.

How to Apply

Deadline on: 11-Mar-2025 08:00 (GMT -4.00)

For more information please check the Link

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Tags Environment and Sustainability Impact Investing Sustainable Development Goals (SDGs) Others