Boxing Methodology for Dynamic Disequilibrium Macroeconomic Models Tender, USA - 97534170

Procurement Summary

Country : USA

Summary : Boxing Methodology for Dynamic Disequilibrium Macroeconomic Models

Deadline : 04 Mar 2024

Other Information

Notice Type : Tender

TOT Ref.No.: 97534170

Document Ref. No. : 0002007117

Competition : ICB

Financier : International Bank for Reconstruction and Development (IBRD)

Purchaser Ownership : Public

Tender Value : Refer Document

Purchaser's Detail

Purchaser : THE WORLD BANK GROUP
1818 H Street, N.W, Washington, DC 20433 Tel: +1-202-473-4709
USA
Email :eapnews@worldbank.org

Tender Details

Tenders are invited for Boxing Methodology for Dynamic Disequilibrium Macroeconomic Models

The World Bank is setting up a Financial Sector Mitigation Tool (FSMT) as a publicly accessible global knowledge product. This will include analytical and modelling work on the macro; financial and fiscal impacts of Green Financial Sector Interventions (GFSIs) and inform optimized use of Results-Based Climate Finance (RBCF).Since capital reallocation from ‘high-carbon- to ‘green- investments will lower emissions; greening the financial sector can be a major lever for countries to achieve their mitigation targets. Currently; policy makers; financial regulators; and financial market actors are designing and; to varying degrees; implementing a range of actions which reflect climate risk in financial and monetary policy; provide public co-financing in target sectors to mobilize private investment; and de-risk investments intended to have climate benefits. Green Financial Sector Interventions (GFSIs) aim to steer private and public financial capital toward low-carbon investment projects by providing incentives for capital reallocation.The financial sector mitigation tool (FSMT) should allow for a solid estimate of the mitigation impact of key GFSIs depending on country specific and time dependent macro-financial conditions. It could be used to understand better the GFSIs- contribution to national climate mitigation targets. It could also be used to optimize GFSIs for mitigation impacts through simulating design variations. In the end; an effective framework for results-based climate finance needs a robust assessment of the macro-financial stability conditions of different forms of green finance instruments.The policy space for using GFSIs will strongly depend on the macro-financial conditions of each country. For some countries; as is often the case in developing open economies; the indiscriminate use of such financial sector interventions may weaken their external financing position; leading to exchange rate depreciation; and probably lower than expected investment and emission reduction. For others; it might on the contrary lead to a positive feedback and further emission reductions. This macro-financial constraint is expected to have a first-order impact on the outcome in terms of emission reductions.This new project aims at introducing country-specific macro-financial dynamics in the use of green financial sector interventions and build a more robust and dynamic FSMT. The final deliverable will be an empirically estimated macro-financial model that will allow for a robust; country-level; estimate of GFSIs impacts in terms of emission reductions and macro-financial stability.

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