TERMS OF REFERENCE Position: National Consultant for Assessment of National Emissions Trading Scheme Project number and name: Project Preparation Grant (PPG) for UNDP-GEF full-sized project (FSP) “Nationally Appropriate Mitigation Actions for Low-carbon Urban Development” Type of Contract: IC Duty Station: Kazakhstan Duration: June – August 2014 (22 working days) Introduction: Kazakhstan ratified UNFCCC in 1995 as non-Annex I party and already in 1999 committed to join industrialized nations in their effort to limit GHG emissions and accept a binding and quantified emission limitation of 100% over a 1992 baseline. Further, in 2010 Kazakhstan announced and communicated to the Parties its additional voluntary commitments to reduce GHG emissions by 15% by 2020 and by 25% by 2050. As part of its national efforts to meet voluntary GHG emission reduction obligation, the Government of Kazakhstan introduced as of January 2013 the domestic emission trading scheme (ETS). Under ETS, all industrial entities with annual emissions above 20,000 tCO2 will be subject to mandatory emission reduction targets, which they can meet either by implementing mitigation measures internally or by buying the respective amount of emission reduction certificates domestically or internationally. Because of the substantial internal demand that it will create, ETS is seen as a major opportunity to stimulate investment in cost-effective emission reduction actions nation-wide. However, many small-scale, but cumulatively significant opportunities for urban emission reductions will remain outside of ETS scope and won’t be able to benefit from the demand that it will create. With this project, the Government of Kazakhstan is requesting GEF support to help identify, develop and leverage financing for Nationally Appropriate Mitigation Actions (NAMAs) in its urban sector. Urban GHG emission reductions are prioritized in this proposal because a) it is the sector with significant and cost-effective abatement potential; b) it is the only sector not explicitly covered by domestic ETS; and c) it is the sector where reduction of GHG emissions will directly result in tangible socio-economic and local environmental benefits. Urban Development and GHG Emissions: Kazakhstan is becoming increasingly urbanized, with the urban population projected to reach 66% of the total by 2030. Kazakhstanis migrate from villages and smaller towns to the largest cities in search of higher incomes, better employment prospects and modern lifestyles. The population of the capital Astana grew by 49.1% between 2004 and 2009, reaching 690,000. It is expected to reach 1.7 million by 2030. Almaty, the capital city until 1998, remains the country's most populous city, at 1.3 million in 2009. Shymkent, Kazakhstan's third-largest city and an important oil refining and industry centre grew by 35.6% in 2004-2009. Karaganda, the country's fourth largest city thrived during Soviet times as a coal mining centre but has lost much of its economic importance, nevertheless the growth continues by about 5.4% in 2004-2009. The challenges most Kazakhstani cities increasingly face are those related to decaying and outmoded urban infrastructure, deteriorated communal housing, urban blight, and urban poverty. Specifically, ensuring maintenance and communal services for multifamily housing remain a key priority for all cities. Multifamily apartment blocks account for 157.2 mln m2 or 60% of the housing stock; one of three or 50 mln m2 is in need of capital renovation, while 3.8 mln m2 is in emergency state and has to be demolished. Regardless of technical conditions, over 70% of multifamily apartment buildings have very low thermal performance (especially buildings constructed in 1950 1980s): thermal losses account for up to 50% of heat consumption. Urban engineering systems, power, heat, water supply and sanitation, are in equally alarming state: depreciation of communal infrastructure is at the level of 60-65% leading to high losses and inefficiencies. Technical losses are estimated to be 16% in power distribution, 20% in heat supply, and up to 60% in water supply. Urban GHG emissions: Kazakhstan is by far the largest GHG emitter in Central Asia with annual emissions of 243 Mt CO2e in 2005 and has one of the world’s highest GHG emissions per capita, 14.8 tCO2/cap. In Kazakhstan, as elsewhere, urban residents have a disproportionately bigger impact on the country GHG emissions than rural population because of their higher consumption level and more GHG-intensive lifestyle and infrastructure. This trend is best illustrated via the dynamics of GHG emissions from municipal waste sector: it is the only one in national GHG inventory which did not experience the decline in emissions throughout 1990s and have grown nearly two fold between 1992 and 2005. Likewise, GHG emissions from municipal heat supply facilities and transport have been steadily rising since early 2000s. In the baseline scenario, urban GHG emissions will continue growing and will account for over 60% of the country carbon footprint by 2030. The Government of Kazakhstan is committed to finance and implement a number of large-scale investment programs aimed at renewal and upgrade of urban environment, housing and infrastructure with a strong focus on increasing energy efficiency, minimizing energy losses, promoting renewable energy and other low-carbon measures in cities. However, the Government also realizes that although substantial its own budget resources, as well as the available human and institutional capacities are not sufficient to fully address vast potential for resources saving and GHG emission reduction in the entire urban sector and to move Kazakhstani cities on a sustainable and low-emission development trajectory. Background: Proposed UNDP-GEF project aims to assist the country in developing and implementing most appropriate urban mitigation measures and leveraging additional financing for their implementation. This will be done through five (5) principal components as follows: Component 1 will enable cities to undertake their urban GHG inventories, assess abatement potential and establish relevant city-wide emission reduction targets Component 2 will put in place enabling institutional framework for implementation urban mitigation actions based on public-private partnership model Component 3 will establish revolving financing scheme under the National Fund for Urban Modernization to provide start-up financing for selected urban NAMAs Component 4 will identify and finance pilot urban mitigation actions in one of Astana’s district Component 5 will establish monitoring, reporting and verification (MRV) system to track the achievement of urban emission reduction targets and link urban NAMAs with domestic ETS Approval of the full-scale UNDP-GEF project’s inclusion into the GEF Council’s work program, together with the approval of a project preparation grant (PPG), was obtained in April 2013. The objective of the PPG is to develop a full-sized UNDP-Global Environment Facility (GEF) project for Kazakhstan, with the expected submission of the project in February 2014. According to GEF rules and regulations the following step is submission of signed PPG initiation plan to GEF Secretary. This document will be submitted to the GEF following further information gathering and stakeholder consultation, and will be accompanied by co-financing letters in line with pledges made in the PIF. The respective partners and co-financers will be fully engaged in the project design phase; oneon-one consultations, working group meetings, and project development workshops will be convened for the purpose. The project partners listed as co-financiers to the PIF have ensured proportional cofunding for the PPG, and will fully participate in the preparation of the full-size project documentation. In this way, the involvement of co-funding partners will be fully ensured. The PPG activities will consolidate and supplement the existing information supplied in the PIF on the state of desert landscapes in Kazakhstan, with focus on protected area management and community involvement in wider landscape. The PPG will address comments of the GEF Secretariat, STAP, and Council. The PPG activities will take into account the lessons learnt from previous UNDP-GEF projects in Kazakhstan and projects of other agencies and donors relevant to the subject matter of the project. The development of the project will follow the principles of CACLIM partnership and priorities set in this framework document for Kazakhstan. The project’s technical feasibility and economic viability will be assessed as will the risks associated with its implementation. In order to achieve these objectives, the PPG has been organized into the following components and activities: 1. Detailed assessment of policy and regulatory settings of the project; 2. Assessment of the capacity of different agencies to support the implementation of project activities; 3. Specifics of on-the-ground actions; 4. Feasibility analysis and budget. Objective: It is expected that the national consultant will assist the team leader in the preparatory grant (PPG) stage through coordinating the work of all other national consultants, is responsible for quality control and preparation of all reports and documentation in time; organization of one-on-one consultations, working group meetings, and project development workshops at the national level. Scope of work: Overall objective of the assignment for the position of the National Consultant on National Emission Trading Scheme in urban sector will be to assist the International Consultant in an assessment of the effectiveness of National Emission Trading Scheme. Under the direct supervision of the Programme Analyst from the Energy and Environment Unit at the Country Office and in consultations with the International consultant, the contractor will be responsible to perform the following activities: Collect the background data to enable assessment of the National Emission Trading Scheme for each of the 15 participating cities, if available and provided by authorized institutions/organizations; Liaise with the relevant municipal authorities to obtain the data that are not available from the national statistics; Coordinate with the International GHG expert on any clarifications or additions that may be needed. Work closely with appropriate professionals on GHG emissions, city development, energy efficiency, heat, hot water supply, energy supply-demand, EE construction, and lighting. Work closely with appropriate institutions at the national and local level in order to achieve basic consensus on scale, content and format of the main project phase; Main Outputs: all necessary materials and calculations prepared for the international leading consultant to develop (1) Project Document, and (2) CEO endorsement template. The scope of concrete tasks will be subject to discussions with the international leading consultant hired by UNDP for that. Expected results and payments: No. 1 Results Timing National Emission Trading Scheme data input 30 June 2014 table for 15 pilot cities (max) of Kazakhstan Final documents with data ready and 15 July 2014 submitted for leading international consultant’s review 4 Amount (optional) 50% 50% Note: This is a lump sum contract that should include costs of consultancy and travel costs required to produce the above deliverables. Payment will be released in two installments upon satisfactorily submission of results. Responsibility: Reports to Programme Analyst in the EE portfolio Ensures timely and quality execution of the Terms of Reference Ensures unconditional carrying out of requirements of the Contract Knowledge and skills: Graduate or advanced degree in the field of engineering/environmental/economic sciences or other relevant fieldsProfessional qualifications with at least seven (7) years of professional experience At least 5 years of working experience in environmental sphere Experience in the related projects; Good capacities for strategic thinking, planning and management; Experience in establishment of cooperation with stakeholders, institutions and organizations. Excellent writing and editing and oral communication skills in English; Good computer skills; COA (MUST BE INDICATED IN NUMBERS) Project ID 86549 Activity Account 1 71300 Amount Fund Dept ID 62000 55205 Impl Agency 001981 Donor Agreed by: Supervisor: Programme Analyst ___________________________________________________________ Signature date Stanislav Kim____________________________________________________________________ Head of EE Unit signature date 10003