Selecting a Carbon Pricing Instrument: a Guide for Policymakers Tender, USA - 38907389

Procurement Summary

Country : USA

Summary : Selecting a Carbon Pricing Instrument: a Guide for Policymakers

Deadline : 31 Dec 2019

Other Information

Notice Type : Tender

TOT Ref.No.: 38907389

Document Ref. No. : 1265998

Competition : ICB

Financier : World Bank (WB)

Purchaser Ownership : -

Tender Value : Refer Document

Purchaser's Detail

Purchaser : THE WORLD BANK GROUP
1818 H Street, NW Washington, DC 20433 Tel : (202) 473-1000 Attn: Mr. Joe Pryor, Carbon Markets and Innovation Unit / Mr. Chol Suphachalasai, Carbon Markets and Innovation Unit / Mr. Daniel Besley, Carbon Markets and Innovation Unit
USA
Email :jpryor@worldbank.org / suphachalasai@worldbank.org / dbesley@worldbank.org

Tender Details

Expression of Interest are invited for Selecting a Carbon Pricing Instrument: a Guide for Policymakers.

Assignment Title: 1265998 - SELECTING A CARBON PRICING INSTRUMENT: A GUIDE FOR POLICYMAKERS

Assignment Countries:
- (countries have not yet been selected)

ASSIGNMENT DESCRIPTION

Develop a guidance note to help policymakers determine the most appropriate carbon pricing instrument for their jurisdiction

FUNDING SOURCE

The World Bank Group intends to finance the assignment / services described below under the following:
- BANK BUDGET
- Partnership for Market Readiness Multi Donor Trust Fund
- PMR - Country Delivery Support and Advisory Services

ELIGIBILITY

Eligibility restrictions apply:
[Please type list of restrictions]

INDIVIDUAL / FIRM PROFILE
The consultant will be a firm.

SUBMISSION REQUIREMENTS
The World Bank Group now invites eligible firms to indicate their interest in providing the services. Interested firms must provide information indicating that they are qualified to perform the services (brochures, description of similar assignments, experience in similar conditions, availability of appropriate skills among staff, etc. for firms; CV and cover letter for individuals). Please note that the total size of all attachments should be less than 5MB. Consultants may associate to enhance their qualifications.

Interested firms are hereby invited to submit expressions of interest.

Expressions of Interest should be submitted, in English, electronically through World Bank Group eConsultant2 (https://wbgeconsult2.worldbank.org/wbgec/index.html)

NOTES
Following this invitation for Expression of Interest, a shortlist of qualified firms will be formally invited to submit proposals. Shortlisting and selection will be subject to the availability of funding.

Only those firms which have been shortlisted will receive notification. No debrief will be provided to firms which have not been shortlisted.

TERMS OF REFERENCE (TOR):
SELECTING A CARBON PRICING INSTRUMENT: A GUIDE FOR POLICYMAKERS

1. BACKGROUND
The Partnership for Market Readiness (PMR) is a World Bank trust fund that provides a platform for countries to design new and innovative carbon pricing approaches to greenhouse gas mitigation in line with their domestic priorities and capabilities. Specifically, the PMR supports the design, piloting and implementation of emissions trading systems, crediting mechanisms and carbon taxes. The platform brings together developed and developing countries to share experiences and lessons learned with regard to these instruments. Twenty-three jurisdictions receive financial assistance and technical advice from the PMR to support the implementation of carbon pricing policies or the readiness activities that can support them (such as baseline setting; registry set up; data collection and maintenance; monitoring, reporting and verification (MRV) strengthening; and stakeholder engagement). Another 13 countries provide funding to finance the partnership-s activities.

In addition to individual country engagement, the PMR supports a global platform to create and share knowledge and lessons regarding carbon pricing through its Technical Work Program (TWP). Each year the TWP generates a host of reports on carbon pricing as well as curating trainings, workshops and online courses.

Many countries are considering carbon pricing as a policy to help achieve their NDCs. In doing so, policy makers face a number of questions, including:
A. What CPI options are available and how are they different?
B. What are the impacts of—and pros/cons associated with—each CPI?
C. Whether and how each CPI would integrate with the country-s existing and planned policies, given its national circumstances?
D. How to select the most appropriate CPI to achieve NDC/development objectives at lowest cost and least resistance?

The PMR intends to develop a guidance note to help policymakers answer these questions and determine the most appropriate carbon pricing instrument for their jurisdiction.

2. SCOPE OF WORK
The guidance note aims to help policy makers determine the most appropriate carbon pricing system. The note will do this by outlining the steps involved, the types of analyses that are needed, and by providing useful tools and templates to assist them. The final guidance note should include case studies, examples and lessons learned from international experiences to support the practical step-by-step guidance. In this way, the focus of the guidance note is the process that governments undertake to evaluate and compare CPIs, rather than extensive content on the substance of the evaluation.

A significant body of work already exists on the consideration of design features of CPIs. In particular, the PMR has published ETS and Carbon Tax Handbooks, which discuss policy design aspects in detail (available here). The PMR is also developing a handbook on designing a crediting system. Accordingly, the aim of this guidance note is not to focus on the policy design features of a CPI. Rather, it is intended to help policymakers decide which CPI would be best suited for the characteristics of their jurisdiction.

The PMR is seeking to hire a firm (or consortium) to write the guidance note. The guidance note is expected to include, but not necessarily be limited to, the following:

Background
I. Purpose and context
a. What this guide is intended to do—allow for policy makers to assess and compare between potential CPIs.
b. It is not intended to help make technical design decisions
c. Outline the process for assessment
i. Identify options
ii. Understand country context
iii. Evaluate CPIs against a set of objectives/criteria (e.g. economic, social, legal and environmental)
iv. Prepare a persuasive recommendation.
d. How to use accompanying examples, templates and assessment tools.
II. Understanding CPI options
a. Summarize the three main CPI options
i. General strengths, weaknesses, opportunities and challenges of each.
ii. Refer to PMR handbooks for each
III. Describing the country context
a. Outline a process for documenting the main elements of a country-s profile, for the purpose of selecting a CPI. This will likely include:
i. profiling the country-s economy such as the main industries (and relative size and geographical distribution), drivers of emissions/economic growth, biggest exports/imports, energy production and export/import.
ii. GHG profile (emissions by GHG gas, and economic sector) and emissions trends and key drivers of emissions growth/decline.
iii. Political context (political platforms and sensitivities relevant to climate mitigation)
b. Develop a template questionnaire that can be completed and/or examples of the types of questions would need to be answered.
Policy Landscape
IV. Policy mapping
a. Outline the policies currently in place (or planned) that are relevant to carbon pricing
V. Policy interaction
a. Assess how each policy would interact with a carbon price (can set out a table with the overlapping/countervailing/supporting criteria - see State and Trends of Carbon Pricing 2016)
VI. Role of carbon pricing
a. Role of carbon pricing in meeting the NDC. How far has the role been considered?

Impact Assessment
VII. Marco-Economic impacts
a. What is modelling? What are macroeconomic impacts
b. Types of modelling (can use Carbon Tax Guide here). Outline how to select the most appropriate model
c. Outline what modeling can and can-t do.
i. Describe how the modelling results should be used—modelling should be used to complement and support analysis and rational. Modelling will not determine which CPI is best - it will only give an indication of the magnitude and direction of impact on key economic variables.
ii. Difficult to compare CPI options in economic modelling.
d. Outline process for modelling the economic impacts of implementing a carbon price
i. Developing a ToR for consultancy services
ii. Importance of comprehensive approach (take into account co-benefits, such as air quality improvements)
iii. Determining the reference scenario
iv. Determining policy scenarios (likely to focus on coverage, ambition, offsets, revenue use). Provide examples of the likely scenarios to include. Reference the report, Checklist for establishing post 2020 emissions pathways.
v. Determining data and assumptions
vi. Determining outputs
e. Provide guidance on how to understand and interpret modeling results for each CPI.
i. provide guidance on how to understand modelling results for main CPI design differences.
VIII. Stakeholder impacts
f. Which businesses are likely to be involved in carbon pricing (in other words, discuss coverage issues and likely point of liability and number of entities covered)?
g. Impact on business competitiveness. Explain how businesses will be impacted and that carbon leakage is the issue of concern for policymakers. Outline potential impacts from modelling if available. Outline areas of economic and jobs growth.
h. Impact on households. Outline the types of models/analysis that can undertake this type of distributional impact analysis.

Evaluation and comparison
IX. Evaluation
i. Bringing it all together in a policy paper - Outline a process for evaluating and comparing the CPIs. Include possible structure or examples of such a report
X. Recommendations and next steps
a. Developing a persuasive recommendation
i. Outline how to develop recommendation such as the main elements to be included and how to incorporate (and when to refer to) modelling results.
ii. Context: Identify and explain the policy problem (i.e. need to reduce GHG for global environmental goals, and to meet NDC.) and outline cost of inaction
iii. Why intervene: Establish a case for government intervention (e.g. Send market signal for investment and emissions reductions, part of a suite of policies etc)
iv. Identify options.

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