TA-10221 PRC: Supporting Market-Based Trading of Carbon Emission Rights in Hunan Province - Carbon Market Development and Capacity Building Consultant (FIRM) (57114-001)

TA-10221 PRC: Supporting Market-Based Trading of Carbon Emission Rights in Hunan Province - Carbon Market Development and Capacity Building Consultant (FIRM) (57114-001)

Date Published: 06-Jun-2024

Deadline of Submitting EOI: 27-Jun-2024 04:00 PM Manila local time

SELECTION PROFILE

Consultant Type: Firm

Selection Method: Simplified Consultants' Qualifications Selection (SCQS)

Selection Title: Supporting Market-Based Trading of Carbon Emission Rights in Hunan Province

Package Name: Carbon Market Development and Capacity Building Consultant (FIRM)

Engagement Period: 18MONTH

Consulting Services Budget: USD 230,000

Source: International

Technical Proposal: Single-Stage Proposal (SSP)

Approval Number: 10221

Approval Date: 07-Dec-2023

ADDITIONAL INFORMATION

Country of assignment: China

TERMS OF REFERENCE

Primary Expertise: Carbon Market Development and Capacity Building

Objective and Purpose of the Assignment

1. Asian Development Bank (ADB) technical assistance (TA) 10221 (PRC): Supporting Market-Based Trading of Carbon Emission Rights in Hunan Province promotes sustainable development and supports actions to combat climate change, which align with the PRC’s “dual carbon” goals. The TA supports the Hunan Provincial Government in research on market-based trading of carbon emission rights, and the design and management of a system for trading carbon emissions rights in Hunan Province. The aim is to develop ways to enable Hunan Province to participate in the national carbon market. The successful adoption of such a system would allow the provincial government to effectively contribute to the PRC’s “dual carbon” policy of peaking carbon dioxide emissions before 2030 and achieving carbon neutrality by 2060.

2. The Hunan Provincial Department of Finance is the executing agency (EA) and its Foreign Economy and Trade Division is the implementing agency (IA). Other agencies, such as the Ministry of Finance and other provincial departments of finance, will also be consulted during TA implementation.3. The TA aligns with the following key impacts: (i) sustainable development promoted and (ii) carbon peaking and neutrality goals supported, as outlined in the PRC’s 14th Five-Year Plan. The outcome of the TA centers on policies on market-based trading of carbon emission rights in Hunan Province improved. The TA is structured to yield two outputs: (i) draft plan for improving market- based trading of carbon emission rights in Hunan Province developed, and (ii) knowledge on market- based trading of carbon emission rights enhanced and disseminated.4. Output 1: Draft plan for improving market-based trading of carbon emission rights in Hunan Province developed. This will be achieved by conducting high-quality research, resulting in a plan to improve market-based trading of carbon emission rights in Hunan Province supported by both the provincial government and target enterprises. The work will build on the Notice of Hunan Provincial People's Government on the Publication of the Implementation Plan for Carbon Peak Achievement in Hunan Province. The plan will comprise (i) technical solutions; and (ii) appropriate governance, fiscal, and financial arrangements, including a financial accounting system. The plan will be formulated within the regulatory and policy framework established by the PRC government and will include policy recommendations for replication and expansion. The aim is to prepare Hunan Province for participation in the national carbon market. Stakeholder consultations and policy workshops, including with the national government and carbon trading market pilot provinces, will be organized to develop the plan and to harmonize efforts in developing carbon markets in the PRC, nationally and provincially. A communication plan will be prepared that details Hunan Province’s strategy to disseminate relevant findings and experience to the central and other provincial governments.5. Output 2: Knowledge on market-based trading of carbon emission rights enhanced and disseminated. This will be achieved through knowledge work on assessing good international practices for market- based trading of carbon emission rights, domestic knowledge-sharing events, and possible international and domestic reference visits to learn from other carbon market trading examples. Potential markets to be explored include (i) the European Union, Japan, the Republic of Korea, Singapore, and the United States; and (ii) the domestic pilot areas including Beijing and Shanghai, and the PRC’s national carbon market. Related knowledge events will be held to build capacity, and a knowledge product will be prepared summarizing the main findings and lessons. The knowledge product will share important and innovative lessons from Hunan Province’s experience in developing carbon markets that are relevant for other provinces in the PRC and for other developing member countries. The Asia-Pacific Green and Low Carbon Development Forum will be considered as a platform for the dissemination of knowledge developed under this TA, allowing to reach a broad audience. 6. The Hunan Provincial Government’s experience and resulting policy recommendations can subsequently be used in replicating and scaling up this approach in other provinces in the PRC, and thereby contribute to improvements in the national carbon trading market.