Background

Interest candidate has to access procurement notice Ref.: https://procurement-notices.undp.org/view_notice.cfm?notice_id=94116

Background :
Indonesia has shown its climate commitment through several international agreements, including the Paris Agreement in 2015. Indonesia has submitted its Nationally Determined Contributions (NDC) to reducing Green House Gas (GHG) emission by 29% independently and up to 41% with international support. The target, planned to be achieved in 2030, coincided with the United Nations’ Sustainable Development Goals (SDGs) which also aims to achieve all 17 goals by 2030.

Attaining the targets for GHG emission reduction requires a huge amount of funds. According to the Second Biennial Update Report (BUR) 2018, Indonesia has delivered the funding needed to achieve the emission reduction targets in 2030, which estimated to be USD$247.2 billion or IDR3.461 trillion. Implementing climate actions to achieve the country’s ambitious goals require a massive amount of sustainable funding and more effective use of current resources from the national budget or other potential financial resources. Therefore, the government plays a crucial role in ensuring that adequate funding is available to finance climate change programs, as well as tracking and monitoring the results of the programs implemented.

With only eight years left to achieve both target in 2030, Indonesia has progressed by showing significant effort in advancing its climate finance as well as mainstreaming innovative financing schemes to close the financing gap between the amount of funding needed and the state’s available fiscal capacity.

Together with UNDP, Government of Indonesia (GoI) has developed and implemented the Climate Budget Tagging (CBT) system that allows the tracking and monitoring of government’s expenditures related to climate change mitigation and adaptation initiatives. Building up on the success of CBT, the Government of Indonesia (GoI) in 2018 issued the world’s first global Green Sukuk, a Sharia-compliant bond which the entirety of its proceeds is allocated towards financing and refinancing government’s climate change mitigation and adaptation projects.

Climate Change Budget Tagging (CBT) is an innovative tool to identify and track how much the government has spent on climate change mitigation and adaptation actions by tagging the spending that fits into the Government of Indonesia’s climate objectives. CBT has been developed and implemented since 2014 by Ministry of Finance with support from UNDP through the Sustainable Development Financing (SDF) program. It involves a detailed assessment of the climate benefits of projects undertaken by line ministries. Initially, CBT has been implemented by central government involves six line-ministries related to climate change mitigation and has expanded to include line-ministries related to adaptation. The number of ministries involvement has been increased since 2018 to present. Based on successful of CBT implementation at national level, since 2020, the Ministry of Finance leverages the efforts to strengthen the commitment by piloting CBT at sub-national level, to identify local government’s participation and commitments in reducing GHG emission targets. The pilot activities have been implemented in 12 areas for last two years.

To continue the process of climate budget tagging at national and sub-national level, as well as to improve the quality of process and reporting analytically and technically, UNDP Indonesia through SDF programme seeks a support from the consultant to analyse CBT data in 2022 and 2023. To implement the project effectively and efficiently, it is necessary to recruit a qualified Climate Change and Public Finance Expert. The national consultant will provide support to the country office on implementation of the SDF and provide technical and quality assurance oversight for the above activities.  The Climate Change and Public Finance Expert will be supervised and report to the Deputy Director for Climate Change Financing, Fiscal Policy Agency of the Ministry of Finance and the National Project Coordinator of Climate Finance, Innovative Financing Lab, UNDP Indonesia. 

Duties and Responsibilities

The consultant’s assignment will fall under UNDP’s areas of support towards the Government of Indonesia on the climate public financial management issue. Scope of work of the assignment are to:

  • Provision of comprehensive report and policy recommendations for public financial management on climate change, not limited to:
    • Develop analysis reports on climate budget tagging at national and sub-national level.
    • Develop a report in priority areas which demonstrate the links between climate change and major national and sub-national budgeting and fiscal policy concerns.
    • Provision of report which includes advisory and recommendation in strengthening the climate budget tagging and performance-based budgeting system and to synergize with other national monitoring and registry system (PEP, SRN). 
  • Provision of policy paper as inputs for annual fiscal policy documents (i.e., budget statement, macro-economic policy document, etc.), including current status of public climate finance data, analysis and policy recommendation.
  • Provision of technical inputs on the green sukuk project selection to be decided by the government’s counterpart. The consultant will provide an analysis report on impact and allocation of green sukuk instruments.
  • Conduct impact analysis on climate budgeting implementation against to gender and social inclusion, from public finance perspectives.
  • Provision of learning materials in form of module, which aims to strengthening the key government officials’ capacity and knowledge on public climate finance and its urgency.

Competencies

Competencies and special skills requirement:

  • Analytical skills, communications abilities, teamwork
  • Knowledge in results based/ performance-based budgeting frameworks
  • Strong motivation & ability to work & deliver under short deadlines.
  • Focuses on impact & result for the client & responds positively to critical feedback.
  • Able to work independently with little or no supervision.

Required Skills and Experience

Academic Qualifications:

Master’s degree in Economics, Finance, Engineering, Environment, Social Science or other related field

Years of experience:

  • Minimum 8 years experiences in Public Administration, Business Administration, Organisational Development, Economics, Public Finance Management or related fields
  • Substantive experience in national and sub-national budget and planning processes, green finance, national and sub-national climate change policies, Fiscal Decentralisation and intra-governmental transfer mechanisms and processes, or related field
  • Valid experience working with national and sub-national governments
  • Excellent speaking and written skills in English (provided sample of report)