Procurement Summary
Country : USA
Summary : Greening Transport Business Development Strategy and Action Plan
Deadline : 20 Apr 2022
Other Information
Notice Type : Tender
TOT Ref.No.: 65016636
Document Ref. No. : 1280130
Competition : ICB
Financier : World Bank (WB)
Purchaser Ownership : Public
Tender Value : Refer Document
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Expression of Interest are invited for Greening Transport Business Development Strategy and Action Plan.
By connecting people to goods, services and opportunities, transport is a key driver of economic growth. However, transport also creates negative externalities in the form of GHG emissions and local pollutants, which have a negative impact on climate change and public health. Transport accounts for approximately 25% of greenhouse gas (GHG) emissions. Rising urbanization, incomes and motorization are increasing the demand for transport and driving up GHG emissions, as more people buy personal vehicles and have access to flying. Transport is a so-called hard-to-abate sector, and several technological, regulatory, and financial barriers stand in the way of greening the sector and require a coordinated global approach. In the past few years, there has been regulatory and voluntary action from both the public and private sector to green and decarbonize the sector, which, in turn, have created investment opportunities in electrification, energy-efficient retrofits, as well as more sustainable fuels and technologies, among others. These commitments, such as the COP26 100% zero emission car sale by 2040 pledge, and other efforts create significant opportunities for IFC to scale up climate-related investments in the private sector.
One of the pillars of IFCs strategy is to facilitate investments in infrastructure, including in transport, and that includes increasing its volume of climate-related finance. IFCs investments in transport in emerging markets are diversified among a variety of transport subsectors (IFC Target Transport Subsectors): Airports, Airlines, Logistics, Ports, Railways, Roads, Shipping & Barging, and Urban Transport. In 2021, IFC committed to align its investments with the Paris Agreement and increase its volume of climate finance: (i) by increasing its share of climate finance in the infrastructure sector to 43% in FY 22; and (ii) reach 100% alignment with the Paris Agreement, meaning that all of IFC's new investment commitments have to do no harm to the Paris Agreement goals in terms of climate change adaptation and mitigation. Achieving these commitments come with a challenge to significantly grow climate investments that are aligned with the Paris Agreement in emerging sectors.
These market developments and corporate commitments present a significant opportunity to invest in projects that contribute to the sectors decarbonization and that are in line with the Paris Agreements objectives. It is with this goal in mind that IFCs Transport team is intending to contract a market-leading Consultant with a strong transport practice that will help define a strategy for business growth and associated product offering that focuses on green transport investments aligned with the Paris Alignment.
Objective:
Assist the International Finance Corporation (IFC), the private sector arm of the World Bank Group, in the development of a climate-related/green transport investment strategy and associated product offering for IFC that focuses on green or sustainable transport investments aligned with the Paris Agreement. This would include the provision of technical inputs for the preparation of an action plan for increasing climate-related business with existing clients, identifying opportunities with new clients, and scaling the use of climate financing tools across the business. Ultimately, the objective is to develop a 2030 Leadership lens for IFC's Transport business that creates enduring leadership for IFC as a source for climate-related (mitigation and adaptation) investments. The Consultant will provide technical inputs to the multidisciplinary team in charge of developing this strategy.
Description of Tasks:
The main activities under the project will be carried out by an independent Consultant (a multidisciplinary firm with a strong track-record in transport projects and climate impacts on infrastructure, as well as investments) over a period of four (4) months and will consist of:
Task 1: Business Development Support and Strategy
Sector analysis: For each of the transport subsectors in which IFC is active, provide inputs for the development of a narrative that describes IFCs strategy in transport subsectors that are not universally aligned with the Paris Alignment or for which an argument can be made for the need for transitional solutions, including projects developed in contexts where zero-carbon solutions may not be feasible. This should include a rationale for greening transport investments in all the subsectors in which IFC invests that considers the local country contexts, socioeconomic development, importance of transport to the achievement of climate goals and implementing green solutions.
Business Development Plan for Transport Subsectors: Provide inputs into the development of a green business development strategy for each of the subsectors in which IFC is active, including a list of potential technical and environmental areas of focus, summary of best industry practices in each subsector, targets and solutions aiming at the stated climate related objectives in relation to each transport subsector; types of investments to support; identification of clients that should be targeted; and the financial/advisory products that might be structured to turn this good intention into investment pipeline. This work should also result in a transport climate business guidance document for internal investment staff that summarizes the strategy above.
Business Development Plan for Supply-chain greening: Increasingly, consumers are more concerned with the carbon footprint of the goods and services they consume and are willing to pay a premium on the products sold by companies that can demonstrate a green supply chain. There is a latent opportunity related to working with both retail and logistics companies in devising investment plans to green supply chains, with transport being a large component of this effort. A big portion of this supply chain is concentrated in emerging markets. The Consultant is expected to support IFC in the scoping of business opportunities related to this in emerging markets by evaluating market trends, describe the ways in which retailers/manufacturers have approached supply chain decarbonization and the names of logistics companies that are already providing, develop a methodology for dissecting and analyzing a complex supply chain for the identification of greening opportunities as described in a set of actionable guidelines for business development teams that include financing/advisory tools and illustrated with case studies.
Task 2: Opportunity Set
Following Task 1, the Consultant will assist IFC in the identification of project leads in the subsectors in which IFC invests, including supply chain greening, with a description of potential climate-related opportunities and investment rationales. The Consultant will also map the global and regional private sector industry associations and coalitions focused on transport decarbonization (we are already part of the Getting to Zero Coalition for maritime transport) and other partners that IFC could associate with to develop solutions or originate business as part of this agenda.
Task 3: Thought Leadership Note
The Consultant will be asked to create inputs for the production of an externally facing document (and potentially other materials) that summarizes and combines the outputs from Tasks 1-2 that articulates the 2030 Leadership lens for our transport business and that provides thought leadership for IFC as a source for climate- smart transport investment. This document should tie into the World Banks Sustainable Mobility for All (Sum4All) initiative, and decarbonization strategies, and that serves as the new global transport investment strategy for IFC.
Publication Date: 01-Apr-2022
Expression of Interest Deadline: 20-Apr-2022 at 11:59:59 PM (Eastern Time - Washington D.C.).
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