I. Background
The United Nations Environment Programme (UNEP) serves as the environmental authority within the United Nations. Its role is to lead and foster collaborations aimed at environmental care, inspiring and equipping nations and individuals to enhance their quality of life without jeopardizing future generations.
UNEP has been instrumental in supporting international agreements and frameworks to mitigate climate change, conserve biodiversity, and promote sustainable use of natural resources. This support is part of UNEP’s work to promote international cooperation in addressing environmental issues.
A key area of UNEP’s commitment is the development and implementation of Mutual Recognition Agreements (MRAs) in carbon trading and emission reduction initiatives. MRAs are crucial to promote international collaboration in these areas, ensuring that carbon credits and emission reduction efforts are recognized and valued at the global level.
Indonesia has been an active participant in numerous international climate change forums and agreements, demonstrating its commitment to implementing the Paris Agreement. One of the key components of Indonesia’s climate strategy is its Nationally Determined Contributions (NDCs), which outline the country’s targets and actions for reducing emissions. In addition to the NDCs, Indonesia has established the Indonesian Environmental Fund (IEF), a financial mechanism that supports a wide range of environmental activities. The IEF plays a crucial role in funding projects related to carbon trading and emission reduction, facilitating the transition to a low-carbon economy.
Despites Indonesia’s strong commitment to addressing climate change, a number of challenges may stand in the way of implementing climate initiatives successfully. Some of which are:
1. Fragmented Carbon Markets
In Indonesia, the separation between domestic regulated carbon markets and Voluntary Carbon Markets (VCM) results in significant inefficiencies. This fragmentation leads to limited market participation and reduced liquidity, hindering the overall effectiveness of carbon trading systems. When these markets operate in fragments, it prevents the mobilization of resources and reduces the potential for large-scale climate action and emission reduction.
2. Insufficient of Regulatory Clarity
The absence of clear regulatory frameworks in carbon markets creates significant uncertainty and risk for market participants. When businesses and investors are unsure about the rules and regulations governing carbon markets, they are less likely to commit resources to these initiatives, fearing potential changes or inconsistencies in the regulatory environment. This insufficient of clarity not only hampers the growth of carbon markets but also hinders their integration at both the domestic and international levels.
3. Barriers to International Collaboration
Differences in standards, regulations, and frameworks across countries create significant obstacles to international collaboration and trade in carbon credits, limiting Indonesia’s ability to participate fully in global carbon markets. These barriers prevent effective trading and leveraging of international resources for climate action, reducing opportunities for funding, technology transfer, and capacity building. Harmonizing standards and establishing mutual recognition agreements are essential to overcome these barriers, enabling seamless collaboration and integration of carbon markets globally and enhancing Indonesia’s climate action efforts.
4. Limited Stakeholder Engagement
One of the significant challenges in developing effective carbon markets and emission reduction mechanisms is the insufficient engagement of key stakeholders. This includes government agencies, market participants, and local communities. When these stakeholders are not adequately involved in the policy-making process, the resulting policies and mechanisms may fail to fully address their needs and realities. Therefore, fostering comprehensive stakeholder engagement is essential to develop well-rounded, effective, and inclusive carbon market policies that meet the diverse needs of all involved parties.
5. Complexity of Article 6 of the Paris Agreement
Article 6 of the Paris Agreement introduces mechanisms for international emission reduction cooperation, but its complexity requires thorough understanding and technical analysis. This is essential for Indonesia to effectively articulate and negotiate its strategies, ensuring alignment with global standards and successful participation in international carbon markets.
6. Need for Standardization
The absence of standardized frameworks for carbon credit verification and recognition creates significant challenges in ensuring the credibility and acceptance of carbon credits across different markets. Without standardization, it is difficult to build trust and achieve mutual recognition of carbon credits, as varying verification processes and criteria can lead to inconsistencies and doubts about their validity. Establishing standardization is essential to enhance the reliability of carbon credits, fostering greater confidence and facilitating broader market participation.
To address these challenges, UNEP is collaborating with Yayasan Pusat Informasi Lingkungan Indonesia (PILI-Green Network) under the project/program known as “2023-2024 UN-REDD Program Technical Assistance” in Indonesia. The recruitment of a Mutual Recognition Agreement (MRA) Consultant aims to engage a specialist to conduct a technical analysis focused on identifying strategies to harmonize Indonesia’s regulated domestic carbon market with the Voluntary Carbon Market (VCM) and engage stakeholders in the MRA preparation process for input & feedback. This effort is vital for improving market efficiency, facilitating international collaboration, and enhancing Indonesia’s ability to meet its climate goals.
II. Job Description
The Mutual Recognition Agreement (MRA) Consultant will provide technical analysis to explore how Indonesia can harmonize its regulated domestic carbon market with the Voluntary Carbon Market (VCM) and engage stakeholders in the MRA preparation process for input & feedback.
III. Key Activities
The key activities to be undertaken by the MRA Consultant include:
- Conduct research, balancing interests, incorporating best practices, and reviewing international standards & policies: The consultant will provide research related to alignment regulated domestic market Framework and VCM Framework. It will consider balancing public and private interests, best practices from other countries and standards/policies from international benchmarks (e.g., IPCC guidelines).
- Facilitate Stakeholders Consultation: The consultant will facilitate stakeholders’ consultations to gather feedback on conformity assessment criteria.
IV. Reporting
The Expert (Consultant) will report to the National Programme Officer of UNEP in Indonesia, UNEP Asia Pacific UN-REDD Coordinator, and Technical Advisor Asia Pacific for Forest Carbon Market, and will provide administrative reports to the PILI-Green Network Project Manager.
V. Qualification Requirements/Evaluation Criteria
a. Education:
- At least a master’s degree in Environmental Science, International Relations, Climate Policy, Environmental Management, Natural Resource Management, Sustainability Studies, or a related discipline. Alternatively, a combination of a relevant undergraduate degree and substantial professional experience is acceptable.
b. Experience:
- At least 10 (ten) years of experience in climate policy, carbon trading, environmental management or related areas.
- Has a proven track record in developing policy documents and position papers.
- Experience in supporting national delegations during international climate negotiations (e.g., COP meetings).
c. Skills:
- In-depth understanding of international climate agreements and carbon markets.
- Knowledge of Indonesia’s environmental regulations and policies, particularly those related to carbon trading and emission reductions.
- Familiarity with the processes and requirements of the UN Framework Convention on Climate Change (UNFCCC) and the Conference of the Parties (COP) meetings.
- Strong analytical and research skills, with the ability to draft comprehensive policy documents and position papers.
- Excellent communication and interpersonal skills to effectively liaise with stakeholders and present findings.
d. Language:
- Fluency in both spoken and written English and Bahasa Indonesia is essential.
VI. Timeline
The overall output-based contract duration for the consultant is 6 (six) months. The following are the timeline to achieve the expected outputs and deliverables
VII. Financing
The total budget required for the procurement of 1 (one) Expert (consultant) is 10,000 USD. The type of contract is a lump sum contract with output-based assignment.
To apply, directly send your CV to ajeng@pili.or.id and ajeng.m.putri@gmail.com for a confidential discussion. Please be informed that only shortlisted applicants will be notified