Strategic Partner for State Level Market Engagement

Request for Proposal

Strategic Partner for State Level Market Engagement on scaling up sustainable finance

Background

India is the world’s third-largest source of emissions and financing the transition to a 1.5-degree aligned economy requires significant funding. With India’s fiscal capacity at around USD 300 bn per year, private finance is needed to bridge the funding gap. However, a recent report by Climate Policy Initiative (2021) on the flow of green finance in India between 2016 and 2018 suggests that current flows are falling far short of this, averaging USD 19 billion per annum. It increased to USD 44 billion per annum in 2019-2020 but is still at a fourth of India’s requirement. (CPI, 2022).

With the public sector balance sheet stretched, new sources of capital will need to be tapped. This is where the nascent, but the fast-growing thematic bond market can play an important role.

Purpose and Objectives

The Scaling Up Finance for India’s Green Transition Project will directly address the urgent need for scaling up and directing domestic and international private capital toward credible investments by addressing key barriers to the growth of a credible, robust, and catalytic thematic finance market in India. The primary purpose of this project is to focus on sub-sovereign issuers and address key barriers including lack of visible pipelines in fast maturing sectors, limited knowledge, capacity to issue sovereign and sub-sovereign debt instruments, and limited knowledge and capacity to put in place enabling policies that incentivize climate-aligned investments.

Scope of Services and Deliverables

Climate Bonds is seeking a Strategic Partner to support with the delivery of the project by providing local focal point at the state government level and enabling market interactions. This should leverage the partners existing networks and platforms, to support three states in India. This will include engaging with all stakeholders, so they are better informed on the options, benefits, and processes for issuing a green bond, with the aim of enabling one state to be equipped with a detailed roadmap for potential green bond issuance.

Timeframe and Milestones for expected Deliverables/outputs

The Strategic partner will work with Climate Bonds to undertake the following outputs:

• Develop scope and strategy for engagement in consultation with local partners, including support with preparing and liaising dialogues, and roundtable meetings with the three states.
• Develop an operational roadmap for potential green issuance (which will include budget tagging methodology, financing options, structural mechanisms etc.).
• Support key entities in up to 3 states to take steps to institutionalize sustainable finance strategies.

These outputs and deliverables will be further defined once the strategic partner is in place.

The Strategic Partner will be required to deliver this work within a six-month timeframe from the commencement date. The anticipated commencement date will be mid-April 2023

Selection Criteria

The Strategic partner should be able to demonstrate alignment with the following criteria:

• Have clear oversight of the political landscape at the state level of India and be able to navigate policy-making mechanisms.
• Demonstrate experience as lead or strategic partner in programs that have assisted state government with sustainable economic strategies.
• Familiarity with green and other thematic financing instruments etc.

• Extensive and comprehensive network across multiple stakeholder groups that including industrial associations, finance working groups, investor platforms, chambers of commerce, and technical/professional associations and any such platforms that represent the relevant stakeholders and economic players for this engagement.
• Knowledge of policy framing for hard-to-abate sectors and/or regulatory processes.

Proposal Submission

Organisations should prepare and submit a technical proposal that addresses the selection criteria, outlining:

• Your technical approach and resources that will be applied to the deliverables, with a clear work planning timeline, and CVs of the technical delivery team.
• The anticipated results and benefits of your work, including proof of success with other similar projects.
• Your engagement, and governance plan with Climate Bonds.
• Background information about the organisation, including related experience, services provided, and geographical expertise.
• Partners should also provide a detailed financial proposal with a breakdown of the level of effort (days and individual resources) for the outputs/deliverables proposed, direct costs and overhead recovery proposed. Partners should also provide two years of audited financial statements and a current-year budget.

Requirements

Please submit your technical and financial proposals, with two samples of past relevant work to Climate Bonds by COB Friday 24th March (GMT) to [email removed - click apply for more details].

Shortlisting will take place shortly after and the Strategic Partner will be in place by the end of March 2023.