391-RFI-04202022-CSEA.pdf

Request for Information (RFI)

To: All Interested International or Local Pakistani Organizations

Subject: USAID Climate Smart Energy Activity (USAID-CSEA)

Reference Number: 391RFI042022CSEA Release Date: April 20, 2022 Response Date: 5:00pm Pakistan Standard Time May 4, 2022

1. Request for Information

This Request for Information (RFI) is released in conjunction with a proposed activity entitled, “USAID Climate Smart Energy Activity (USAID-CSEA)”.

This activity aims to support the Government of Pakistan (GOP) in the implementation of its Nationally Determined Contributions (NDC) announcements of 2021. The energy sector contributes to over 40 percent of total national emissions as per the 2018 greenhouse gasses (GHGs) inventory of Pakistan. Through this activity, USAID will work with the selected government, donor, and private sector partners in addressing climate change issues in the energy sector. Although the focus of the project is reduction in energy sector emissions, the suggested project activities may investigate adaptation later. Details about the activity can be seen in Annex-A.

The recommended format for the response to this RFI is provided below:

S. No. Description Pages

1 Title Page:

Reference Number: 391RFI041322CSEA Name / Email Affiliation/ Organization Address

1 page

2 Introduction of the organization 1 page

3 Responses to USAID questions (see below) 5 pages

4 Additional suggested topics or areas to further explore 1 page

5 Past relevant experience of the responder and clarifying questions (if any) for USAID

1 page

2. How to Submit a Response

Please submit your response electronically to Mr. Sami Abbasi, at sabbasi@usaid.gov, with a copy to Mr. Muhammad Ali Bilal at mbilal@usaid.gov no later than April 20, 2022 as stated above. You will receive only an electronic confirmation acknowledging receipt of your response.

No individualized feedback or suggestions will be sent to responders.

Your responses may contribute to upcoming activity design(s). However, this RFI will not be construed as a commitment by the U.S. Government (USG) to issue any solicitation, award any grant, or pay for any information submitted in response to this request. Responders are responsible for adequately marking proprietary or restricted information contained in their responses.

No basis for claims against the U.S. Government shall arise because of a response to this RFI or from the USG’s use of such information. Specific questions about this RFI should be directed only to the email addresses identified above. This office will not respond to any telephonic or other inquiries regarding this notice.

Please note USAID is not seeking technical or cost proposals currently. Do not submit any proposal/application in response to this RFI. Only the information as requested above or in Attachment A will be considered.

Thank you very much for your time and effort.

Sincerely, Sami Abbasi USAID/Pakistan Office of Acquisition and Assistance mailto:sabbasi@usaid.gov mailto:mbilal@usaid.gov

Annex - A

1. BACKGROUND

Pakistan is the eighth-most vulnerable country to global warming in terms of potential economic losses and faces challenges to water and food security and livelihoods for its 220 million inhabitants. According to Pakistan’s last GHG inventory of 2018, Pakistan’s total GHG emissions are 489 MtCO2e. Projections show that these emissions will go up to 1600 MtCO2e, if not curtailed. The energy sector is the largest contributor to GHG emissions followed by the agriculture sector.

The increased GHG emissions are impacting the world and Pakistan negatively. In Pakistan, the mean temperature has risen by 0.47 °C in the last 50 years. Rising temperatures impact the snowpack of Pakistan’s glaciers in the northern areas comprising the Himalayan, Karakoram, and Hindukush ranges, leading to water shortages, flash flooding, and land erosion that threaten millions of farmers’ livelihoods. Climate change is also negatively affecting Pakistan’s food security, and it has the potential to impact hydroelectric dams that produce about 30 percent of Pakistan’s electricity. The lack of storage capacity in relation to population increase has dropped per capita availability of water from 5,260 cubic meters to 935 cubic meters in the last 70 years, making Pakistan a water scarce country.

In response to the gravity of the situation, the GOP has announced policy actions and targets to reduce GHG emissions, increase water availability, and prioritize the use of indigenous resources for energy security and affordability. Pakistan made NDC commitments in 2016 which were revised in 2021. According to its 2021 NDC, Pakistan plans to reduce its projected emissions by 50 percent, capping them around 800 MtCO2e. These goals are ambitious, and the GOP has indicated that it only has funds to reduce emissions by 15 percent, seeking assistance from the international community and the private sector for the remaining 35 percent emissions reduction.

Since the energy sector contributes to over 40 percent of Pakistan’s emissions, it is receiving special attention from the GOP. Three out of four high-priority mitigation actions in its 2021 NDC relate to the energy sector. The GOP intends to increase the share of renewables (including hydropower) to 60 percent by 2030 and ban the construction1 of additional coal power plants, except for those already having received a full commitment by the GOP. Additionally, by 2030, the GOP plans to electrify 30 percent of its passenger and heavy vehicle fleets as well as 50 percent of the two- and three-wheelers.

1 However, the GOP wants to explore the options of coal gasification and liquefaction for indigenous coal that can result in significant GHG emission.

2. ACTIVITY DESCRIPTION & OBJECTIVES

The goal of USAID-CSEA will be to support the GOP in meeting its 2021 NDC commitments focusing on the energy sector. USAID proposes its support for Pakistan in two ways: 1) reducing emissions from the energy sector; and 2) decreasing the energy sector’s vulnerability to the effects of climate change. With the overall focus on reducing emissions from the energy sector, following are the high-level objectives:

Objective 1: Investment Mobilized: This objective will focus on working with the GOP and private sector partners to mobilize resources to deal with the climate change issues in the energy sector. The focus will be on bringing together partners to introduce or expand new commercial technologies that best fit Pakistan’s needs and its environment. While the investments in clean energy generation will be an important area, USAID would like to go beyond the clean energy generation and look for other opportunities with an energy nexus. Examples include waste-to-energy/biogas projects, reduction in methane emissions including Unaccounted for Gas (UFG), potentially reducing livestock methane emissions, and watershed management. The offerors are expected to devise strategies that attract investments to deal with the effects of climate change in the energy sector. This would include but would not be limited to the utilization of international climate financing (such as Green Climate Fund), Nature Performance Bonds, Green/Blue Bonds, Carbon Pricing Instruments, Carbon Trading Mechanism, etc.

Objective 2: Regulatory Structure Developed and Institutional Capacity Increased: The work under this objective will primarily focus on enhancing the GOP’s capacity to understand the climate change issues in depth and conduct research and develop strategies/policies/regulations to curb these issues. Examples include, but are not limited to, the assessment of methane emissions and identification of potential activities to reduce methane emissions, energy efficiency standards for appliances and green buildings, distributed generation regulations etc.

Objective 3: Support the Private Sector for Net-Zero: Many Pakistani and international businesses working in Pakistan are committed to reaching net-zero emissions in the coming years. Under this objective, USAID would partner with a few businesses to review their needs, priorities, and main obstacles to achieving net zero. Through a process of co-creation, USAID will identify ways to work with them in reaching common goals. Potential areas of cooperation could include providing technical assistance and removing barriers, especially related to policies and regulations that limit their ability to reach net-zero. USAID may pursue scalable pilot activities with selected private businesses to serve as models for companies seeking to reach net zero. USAID would research and examine the best practices of other similar partnerships previously established between USAID and private companies.

3. REQUESTED INFORMATION/QUESTIONS

USAID/Pakistan is interested in gathering information on the following:

1. What are your views on the above-mentioned objectives? Are there gaps? If so, what are they?

2. In your opinion, what are the top five issues, in order of priority, that need to be addressed in

Pakistan to reduce energy sector emissions?

3. Which technologies do you believe will be critical towards helping Pakistan meet its NDC targets?

4. While domestic and international companies and banks appear comfortable investing in the renewable energy sector, what other areas within the energy sector do you feel require attention from the government, private sector, and the development agencies?

5. Which activities, relevant to the energy sector, can be undertaken in other areas identified in the 2021 NDC i.e., waste, agriculture, industrial processes?

6. What type of adaptation activities can be considered in terms of technology, financial, policy and regulatory support to reduce the vulnerability of energy supplies, physical infrastructure, and operations?

7. What kind of institutional capacity building support will be required for the GOP and provincial governments to achieve its NDC commitments in the areas suggested?

-----------------------End of the document ------------------------