Background

UNDP is the knowledge frontier organization for sustainable development in the UN Development System and serves as the integrator for collective action to realize the Sustainable Development Goals (SDGs).

UNDP's policy work carried out at HQ, Regional and Country Office levels, forms a contiguous spectrum of deep local knowledge to cutting-edge global perspectives and advocacy. In this context, UNDP invests in the Global Policy Network (GPN), a network of field-based and global technical expertise across a wide range of knowledge domains and in support of the signature solutions and organizational capabilities envisioned in the Strategic Plan.

The Nature, Climate and Energy Team as part of the GPN, supports countries to promote and scale up integrated whole-of-governance approaches and nature-based solutions that reduce poverty and inequalities, strengthen livelihoods and inclusive growth, mitigate conflict, forced migration and displacement, and promote more resilient governance systems that advance linked peace and security agendas.

The NCE Team works with governments, civil society, and private sector partners to integrate natural capital, environment and climate concerns into national and sector planning and inclusive growth policies; support country obligations under Multilateral Environmental Agreements; and implement the UN’s largest portfolio of in-country programming on environment, climate change, and energy.

In order to streamline its financial and investment engagement, UNDP launched the Finance Sector Hub, a finance and innovation platform, that draws on a critical mass of UNDP expertise, initiatives, and partnerships to support the mobilization and leveraging of resources for the SDGs and lead the implementation of the new UNDP private sector strategy and other initiatives. The Hub is an integral part of both the Bureau for Policy and Programme Support (BPPS) and the Bureau of External Relations and Advocacy (BERA), as well as part of the GPN. The Hub serves as a connector, broker and global coordinator among internal and external actors; curates and manages UNDP’s catalogue of service offers on SDG financing to governments, investors and companies, via the COs, to significantly enhance the scale and impact of UNDP’s work.

Context

As countries look to re-structure their debt or raise new debt to palliate and recover from the impact of COVID-19, many governments are approaching UNDP to explore thematic issuances (e.g. green, social, blue, sustainable) or other type of debt-linked instruments (e.g. nature performance bonds or NPBs, sustainability/biodiversity linked bonds, debt for nature swaps, etc.) to provide them with fiscal space and financing linked to clear social and environmental outcomes.

UNDP has been asked to provide technical assistance to national and sub-national governments issuing sovereign and sub-sovereign thematic bonds to support countries in their efforts to raise private funds at adequate conditions on the international and national capital markets to finance their development activities in line with the objectives set forth by the 2030 Agenda, the Addis Ababa Agenda for Action on Finance for Development, and the Paris Agreement. This could also lead countries’ ability to diversify their sources of financing and launch new securities that help promote the development of domestic capital markets in developing countries.

Within the thematic bond universe, one class of instruments that show promise are performance bonds. These offer specific debt relief (e.g. lowering interest rates on the coupon) in exchange for certified performance on agreed parameters. The aim of UNDP therefore is to assist countries and sub-national authorities in different capacities and according to their need along the debt issuance process, both on performance bonds tied to nature performance and other thematic bond instruments.

UNDP has a number of comparative advantages that would enable it to help develop a market for NPBs, scale- up green bonds with use of proceeds allocated to biodiversity projects, and explore nature-climate-SDG linked financial instruments, not only as instruments for debt relief, but for long-term green recovery and sustainable growth.

UNDP aims to offer the nature performance bonds as a new proven financial instrument, incentivising large scale restoration and nature conservation, creating jobs and reducing debt burden of developing countries. The consultancy will work to overcome the chief bottlenecks to the provision of nature-based instruments for emerging markets, while also mainstreaming to ensure scalability.

Duties and Responsibilities

Under the direct supervision of the SDG Finance Sector Hub Senior Advisor on Thematic Instruments and working closely with the other team members in NCE and FSH, the Advisor on Nature Performance Debt Instruments will be responsible for identifying nature performance bond opportunities and support work on other thematic bonds, including green and blue bonds; determining their feasibility and usefulness as well as leading the development and implementation of related initiatives; developing in-house capacity, generating tacit knowledge and translating these skills into delivery of financing instruments at the country level. Furthermore, the Advisor will work on Fossil Fuel Subsidy Reform and Debt Instruments in at least 5 countries.

The Advisor on Nature Performance Debt Instruments will be responsible for the performance of the following functions and duties:

1.   Supporting development of a global strategy and approach on nature performance debt instruments engagement, considering inter alia: (i) Debt sustainability factors; (ii) Level of ‘market access’ of economies (i.e. if countries have ready access to ICM or not); (iii) Nature of environment and social issues faced by countries – and the suitability of a debt based solutions.

2.   Pilot development and brokering of restoration and nature/conservation-focused performance bonds in 5 countries.

3.   Supporting the rollout of the FSH Thematic Debt offering and piloting of development bond frameworks in selected countries by advising countries on their specific needs.

*For specific instruments this could involve to assess policy options available to government (including bond issuance but exploring alternatives).

4.   Supporting the rollout of training programmes on NPB, thematic and other SDG-linked bonds for UNDP CO and RB staff.

5.   Identifying revenue streams for UNDP (fee for services).

6.   Identifying where legal support is needed and advise on potential structures.

7.   Supporting the development of impact frameworks that can guide budget allocation strategies that can accurately portray countries’ sustainability commitment to investors, including: development/selection of high-level KPIs that can accurately portray its sustainability performance to investors.

8.   With support from FSH, guiding countries through the bond issuance or debt swap process from origination, structuring, KPIs, monitoring and reporting, preparing all the steps on bond preparation, market placement, and post-issuance compliance. In the case of debt for nature solutions, the work includes exploration of this instrument, depending on the profile of the country, the natural capital at risk or with potential to be protected, and the profile of the creditors (existing and potential).

9. Work on Fossil Fuel Subsidy Reform and Debt Instruments for Nature, Climate and Energy (NCE) with initial support in at least 5 countries

Competencies

Corporate

• Demonstrates integrity by modelling the UN’s values and ethical standards;
• Promotes the vision, mission, and strategic goals of UNDP;
• Displays cultural, gender, religion, race, nationality and age sensitivity and adaptability;
• Treats all people fairly without favouritism.

Professionalism

• Capable of working in a high- pressure environment with sharp and frequent deadlines, managing many tasks simultaneously, and self-motivated and proactive;  
• Excellent analytical, advocacy, and organizational skills;
• Exercises the highest level of responsibility and be able to handle confidential and politically sensitive issues in a responsible and mature manner.

Teamwork

• Works well in a team;
• Projects a positive image and is ready to take on a wide range of tasks;
• Focuses on results for the client;
• Welcomes constructive feedback.

Communication

• Excellent inter-personal and communication skills;
• Strong analytical, client communication, and advocacy skills.

Required Skills and Experience