RFI_for_LEDS_Concept_Paper_May_7_2013.pdf

Request for Information

RFI Issue Date: May 7, 2013 Solicitation Number: SOL-520-13-000007 Response Due: Thursday, May 23, 2013 at 5:00 pm (Guatemala time) Attention: ledsguatemala@usaid.gov

This is a Request for Information. This is not a Request for Proposals (RFP) and is not to be construed as a commitment by the U.S. Government to issue any solicitation or ultimately award a contract on the basis of this RFI, or to pay for any information submitted as a result of this request. If a solicitation is released it will be synopsized in

FedBizOpps. It is the potential offeror's responsibility to monitor these sites for the release of any solicitation or synopsis. It should be noted that responding to this RFI will not give any advantage to any firm or organization in the subsequent procurement.

This Request for Information (RFI) intends to obtain information about interests, capabilities and market information related to the enclosed draft Concept Paper entitled “Guatemala LEDS Project” in order to inform the design of a future mechanism to provide these services to USAID/Guatemala. This RFI is open for comments from any interested U.S. and Non‐U.S.

organizations.

Responses

The information USAID/Guatemala is seeking from the public for the RFI is below:

1. Comments on Draft Outline Concept Paper

To assist in the efficiency of this process, please consider the following in preparing your input:

Please ensure comments are concise and specific to information included within the draft Concept Paper, Please ensure submitted comments make specific reference to page and section numbers, Please give special consideration to the following questions:

o Please comment on technical feasibility of the development model, o What, if any, data inputs beyond those articulated in the concept paper would be necessary for generating a functional model?

o Based upon prior model and applied tool kit development experience, what challenges and contingencies should be considered?

o What alternative approaches might be considered in order to accomplish the same objectives?

2. Statement of interest

3. Please note that if USAID decides on releasing a Request for Proposal in connection to the concept paper, a consolidation of submissions and questions to the RFI will be made public either before the RFP or as an annex to the

RFP. Contributors’ information will remain anonymous to the public.

Please note USAID is not seeking technical or cost proposals at this time. Do not submit a full proposal. Only the information requested above will be considered.

This RFI will be open from the date of release through May 23, 2013 at 5:00 PM (Guatemala time). Please send all responses to this RFI via email to ledsguatemala@usaid.gov

Comments/Questions

Comments and questions regarding this announcement must be submitted in writing by e-mail to ledsguatemala @ usaid.gov . Verbal comments/questions will NOT be accepted. USAID will not be responding to comments/questions based on this RFI. USAID will take all comments /questions into consideration when preparing the final RFP, to be released at a later date. The Government does not guarantee that comments/questions received after May 23, 2013 05:00 p.m. (local time) will be taken into consideration.

Submissions become Government property and will not be returned. Thank you for your assistance and interest in

USAID.

Natalie J\. Thuriberg

Regional Contracting Officer

USAID/EI Salvador

CONCEPT PAPER

Guatemala Low Emission Development Strategy (LEDS) Project

1. Overview

a. The EC‐LEDS initiative

Data presented during the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties

(COP) meetings in Cancun and almost every climate change forum thereafter indicate that global emissions have met or exceeded projections presented a decade ago. Some impacts from climate change are already reverberating and being felt throughout the world, while commensurate investments and efforts to mitigate climate change are lagging. However, technological change and innovation can offer alterative pathways to cope with global climate change.

Under the Presidential Global Climate Change (GCC) Initiative, the United States Government’s (USG) Enhancing Capacity for

Low Emission Development Strategies (EC‐LEDS) program is supporting over 20 countries worldwide.1 Within Latin America, the focus countries include Guatemala, Costa Rica, Colombia, Mexico, Peru, and Jamaica. EC‐LEDS is a

“whole‐of‐government” initiative managed by USAID and the U.S. Department of State, with participation of other USG agencies such as the U.S. Department of Agriculture, U.S. Department of Energy, and the Environmental Protection Agency.

This EC‐LEDS project aims to support the Government of Guatemala (GOG) in a country‐led process to develop a LEDS and the implementation of selected activities outlined in the strategy. A Low Emission Development Strategy (LEDS) is a country‐built and country‐owned strategic framework that articulates concrete actions, policies, programs and implementation plans to advance economic growth, improve environmental management and meet development objectives.

This framework provides a foundation for achieving long‐term, measurable greenhouse gas (GHG) emission reductions as compared to a business‐as‐usual development pathway that does not incorporate any emission reduction efforts.

While a LEDS may look different depending on the country‐specific planning process and the national priorities, as well as existing climate change planning, there are common principles that apply:

An outline of national development goals

A summary of economic data and an inventory of national GHG emissions

Assessments for threats to economic development, including climate change, security, etc.

A long‐term projection of business‐as‐usual economic growth and GHG emissions, identified development

“pathways”, and whole‐of‐economy and sector‐specific goals

A list of prioritized alternative actions that improve economic growth, respond to vulnerabilities, and lower the long‐term emissions trajectory

Implementation and financing plans for high‐priority actions (linked to country budgets)

Activities that support the creation of a LEDS include those that provide technical assistance and capacity enhancement to the partner country to enhance their ability to gather, evaluate and manage data, as well as assess and prioritize activities.

Identified LEDS activities will support a low emission development trajectory. Prioritized activities, when implemented, will enable economic and other development goals while reducing emissions trajectories.

1 http://www.state.gov/documents/organization/152281.pdf

Within USAID/Guatemala, the EC‐LEDS project is aligned with the Country Development Cooperation Strategy (CDCS) from FY

2012‐FY 20162 and the Presidential Global Climate Change Initiative.3 Under the CDCS, this EC‐LEDS project supports

Development Objective (DO) 3: Improved Management of Natural Resources to Mitigate Impacts of Global Climate Change.

Through this DO, USAID will support improved natural resource management, mitigation of the impacts of natural disasters, strengthening of institutions to improve environmental governance and collaboration with the GOG in the design of LEDS.

Under the Presidential Global Climate Change Initiative, there are three global funding earmarks: sustainable landscapes, adaptation, and clean energy. Of these three earmarks, USAID/Guatemala receives sustainable landscapes and adaptation funding only. While sustainable landscapes and clean energy are the two funding earmarks that specifically address mitigation, USAID/Guatemala does not receive clean energy funds; therefore, this project will be funded only with sustainable landscapes funds. According to the global USAID Climate Change and Development Strategy,4 the goal of sustainable landscapes is to assist efforts to reduce greenhouse gas emissions from deforestation and land degradation and to enhance sequestration of carbon associated with sound land use and management, with a focus on forests and other priority ecosystems, such as peatlands, wetlands, and agricultural lands.

b. Guatemalan achievements and approach to Low Carbon Development

According to the United Nations, Guatemala is one of the 10 countries most vulnerable to climate change in the world, and the 4th most vulnerable to natural disasters. It is located in the ring of fire and is in the Atlantic hurricane path, both of which expose Guatemala to considerable risk and damage from hurricanes, tropical storms as well as substantial and frequent droughts and floods, as well as earthquakes. In the past decade, Guatemala has been directly affected by a series of disasters, such as Hurricane Mitch in 1997, Tropical Storm Stan in 2005, and more recently, Tropical Storm Agatha in 2010 that caused more than $1.5 billion in damage and Tropical Depression 12‐E in 2011.

In the area of sustainable landscapes, GHG emissions from land use change, particularly deforestation and forest degradation, constitute a significant source of emissions for Guatemala according to Guatemala’s Second Communication on Climate

Change on the national inventory of GHG.5 Although a third of Guatemala is still covered by forests, the country has witnessed some of the highest rates of deforestation in the world in recent years. Annual deforestation for the last 10 years has been as high as 73,000 hectares, indicating that one of the key focus areas for reducing Guatemala’s GHG emissions is reducing deforestation and forest degradation. Other important sources of emissions include transport, energy use and production (e.g., including burning of biomass including firewood and sugar cane), as well as industrial processes related to the production of minerals (e.g., cement, asphalt, glass).

In terms of GOG commitment to climate change, Guatemala signed the United Nations Convention on Climate Change in 1992

(ratified by the Guatemalan Congress in 1995). Subsequently, the GOG made significant advances on the institutionalization and internalization of climate change issues in national planning. Clear examples of positive steps taken include the below:

The National Global Climate Change Policy of 2009,6 which includes three objectives: 1) development of national capacities in climate change, 2) reduction of vulnerability and adaptation to climate change, and 3) contributing to the mitigation of GHG emissions, including a focus on land use change and forestry, energy, transport, and industry.

2 http://transition.usaid.gov/our_work/policy_planning_and_learning/documents/GuatemalaCDCS.pdf 3 http://www.whitehouse.gov/sites/default/files/Climate_Fact_Sheet.pdf.

4 http://transition.usaid.gov/our_work/policy_planning_and_learning/documents/GCCS.pdf 5 http://www.marn.gob.gt/documentos/novedades/inventario.pdf 6http://www.segeplan.gob.gt/downloads/clearinghouse/politicas_publicas/Recursos%20Naturales/Politica%20Nacional%20de%20Cambio %20Clim%C3%A1tico%20Guatemala.pdf

A Climate Change Law proposal is under discussion in the Guatemalan Congress7

The creation of climate change units in several ministries and governmental entities, such as the Ministry of

Environment (MARN), Ministry of Finance, Ministry of Agriculture (MAGA), National Council on Disasters

Reduction (CONRED), National Protected Areas Council (CONAP), National Forest Institute (INAB), among others.

A national global climate change agenda, which is being implemented through programs and projects.

Related initiatives include the National Strategy for the Sustainable Production and Use of Firewood, 2013‐20248 and the new Energy Policy for 2013‐20279

Beginning in early 2012, the Ministry of Environment established six institutional priorities for 2012‐2016 under the new GOG administration: 1) climate change, 2) protection of water, soil, and forests, 3) strengthening the Guatemalan system of protected areas, 4) public participation, 5) environmental compliance, and 6) green economy (e.g., actions that support environmentally‐friendly investments related to reduction of carbon emissions, utilization of renewable energy sources, energy efficiency, sustainable tourism). Objectives 1 and 6 in particular have potential linkages with LEDS in Guatemala.

Within the climate change priority, the current governmental approach by the Ministry of Environment (MARN) to address climate change in Guatemala focuses on five components:

a. Climate change science, under which the future scenarios and models are being generated,

b. Metrics of climate change, specifically national GHG inventories,

c. Disaster reduction, vulnerability and adaptation to climate change,

d. Mitigation and reduction of GHG emissions, and

e. Development of human and technical capacities.

Currently the USG is collaborating closely with MARN and SEGEPLAN as the official points of contact in Guatemala for LEDS.

MARN provides the sectorial leadership for LEDS with SEGEPLAN complementing that role with public planning.

Participation of other GOG institutions, such as CONAP, INAB, MAGA, Ministry of Energy and Mines (MEM), Ministry of

Economy (MINECO), Ministry of Infrastructure and Communications (MICIVI), and CONRED will be important for inter‐sectorial planning on LEDS, as well as the private sector, civil society, and academia. As background, the GOG provided an official interest statement to the USG to participate in the initiative in 2012. Currently the USG and the GOG are working toward a joint Memorandum of Understanding (MOU) and Agreed Work Program (AWP) to implement LEDS under the framework of the signed Bilateral Development Objective Agreement (DOAG) (FY 2012‐2016) in support of the

USAID/Guatemala Country Development Cooperation Strategy.

2. GOAL of the Project

The project will identify ways to collaborate with the GOG on the planning, design, policy development, and implementation of LEDS, as well as promote participatory processes with the private sector and civil society. As stated above, t this project will be funded with Sustainable Landscapes funds under the GCC Initiative and thus will adhere to the guidelines for the

Sustainable Landscapes earmark.

The overall goal of the ECVLEDS Project is to:

Partner with the GOG to create and implement a Low Emission Development Strategy and build institutional capacity in order to mitigate climate change and reduce GHG emissions

7 http://www.congreso.gob.gt/comision.php?id=5 8 http://www.sifgua.org.gt/Documentos/Informes/Estrategia%20lena%20140812.pdf 9 http://www.mem.gob.gt/

Based on this general goal as well as initial findings from the USG interagency scoping report and other technical reports,10 the following components were identified for the Guatemala EC‐LEDS project :

A. Reliable Science and Analytics. Improve national GHG inventories and systems to effectively measure, report, and verify emission reductions, as well as conduct economic modeling and projections such as Marginal Abatement

Curves (MAC) for long‐term development planning.

B. Institutional Capacity. Support Guatemala (GOG, private sector, academia and civil society) to increase its capacity to understand, analyze and respond to challenges emerging from global climate change.

C. Participatory Process and Transparency. Promote a participatory process that engages the GOG and the private sector, academia, NGOs and civil society in a constructive process to focus development investments strategically through low emissions planning to advance sustainable development objectives.

D. Promoting Implementation. Provide assistance to implement low emissions actions that are specific to EC‐LEDS in some priority sectors to promote and demonstrate the benefits of low emissions activities.

E. Communication and Education. Establish a cross cutting communication and education strategy for climate issues and low emissions development

3. Components and Illustrative Tasks

A. Reliable Science and Analytics. This component will focus on the improvement of national GHG inventories and systems to effectively measure, report, and verify emissions reductions that result from the implementation of low emission strategies across all sectors of the economy. A LEDS is based on models and projections as well as deviations from business as usual trends, all of which depend heavily on baselines and data. Baselines for GHG inventories should be standardized, reliable, and transparent. Economic modeling of those baselines include such tools as Marginal Abatement Curves that illustrate the economic costs of mitigation for different scenarios and are used for long‐term policy making decisions. The accuracy of these trends, models, and projections depends on the quality of the data used. The responsibility to collect the necessary data and process the information should not rely solely on one institution, but rather involve collaboration with multiple institutions. Under this component, the program will work with relevant GOG institutions and academia to ensure, to the extent possible, that the data and information needed are available in the quality and the time requested.

Illustrative tasks:

Create or improve the two‐way information flow system from the end user to the sector lead and to

MARN on GHG emission which will include the stakeholders’ active participation;

Generate reliable scientific information and standardize it through the relevant entities in the GOG and in collaboration and with the participation of academia and private sector;

Generate the necessary models and projections and well as the marginal abatement curves for each sector, and if necessary, the sub‐national base lines for each sector, Socialize and share this information with the government, private sector, and civil society, to promote an informed process of decision making.

B. Institutional Capacity. This component will focus on supporting Guatemala (GOG, private sector, academia and civil society) to increase its capacity to identify and prioritize development investments strategically through low emissions planning to advance sustainable development objectives. Although LEDS does not intend to create a

10 For further details, please see attached Scoping Mission Report,” Guatemala: Enhancing Capacity for Low Emission Development Strategies,” “Institutional Assessment and Sectorial Analysis for the Low Emission Development Strategy of Guatemala” by the USAID FCMC project, and the U.S. Forest Service report on Land Use and Land Use Change and Forestry (LULUCF).

separate planning system but rather to integrate into existing structures, it may require new professional capacities, technologies, and technical assistance for the initial stages. Since LEDS is a process led by the GOG, the responsibility is shared among various sectors and will require institutional capacity strengthening in multiple entities.

This component may also benefit other institutions outside the GOG that could contribute to the LEDS process and its sustainability.

For each priority sector, increase GOG capacity to collect and process basic data relevant to design and implement LEDS;

Develop coordination mechanisms within the GOG according to the prioritized sectors in the GHG inventories;11

Identify and involve key stakeholders in academia, NGO and civil society, that could significantly contribute to the implementation and sustainability of the process;

Based on the information and systems developed under objective one, support the GOG, private sector, academia, NGO and civil society to define policies, plans and programs to support the implementation of the Guatemalan mitigation process and LEDS.

C. Participatory Process and Transparency. This component will work to promote a participatory process with the aim of engaging the government with the private sector, academia, NGOs and civil society in a constructive process to focus development investments strategically through low emissions planning to advance sustainable development objectives. Following the same principles from UNFCCC’s Resource Guide12 to prepare the national communications and lessons learned from other countries,13 the LEDS process will seek the active participation of all involved stakeholders. Transparency will be critical for openly sharing information, including assumptions and methodologies, in order to facilitate replication and assessment of the inventory by users of the information and is fundamental to the success of the process for the communication of information. Traditionally LEDS and climate change are viewed as environmental issues and are left for the environment sector to address alone. Through this process, LEDS intends to demonstrate that climate change and low emission development are cross cutting issues that require the involvement of and are the responsibility of various sectors. The Guatemala LEDS program will seek to actively include key stakeholders in various sectors.

Within priority sectors, work with the GOG to support the organization of working groups and engage the relevant private, academia, NGO and civil society stakeholders;

Work across sectors to promote the exchange of experiences and lessons learned;

Expand and replicate successful experiences from some sectors already implementing activities on reducing emissions to other sectors.

D. Promoting Implementation. This component will provide technical assistance to implement low emissions actions that are specific to LEDS in priority sectors. Several initial assessments have been completed, (refer to footnote 12), these studies have identified a number of potential activities in different sectors that can be used to promote LEDS and to showcase practical results that can be applicable to a range of activities. Within this universe of activities, a carbon neutral approach seems to be a proven initial alternative and some sectors are already applying this concept.

The program will assess the abatement potential of these activities and approaches, and will continue seeking further opportunities to promote innovative examples to implement LEDS.

11 Please see attached Inventario Nacional de Emisiones y Absorciones de GEI, año base 2005.

12 UNFCCC Resource Guide: http://unfccc.int/resource/docs/publications/09_resource_guide3.pdf 13 Please see best practices from the LEDS Global Partnership: http://en.openei.org/wiki/LEDSGP

Support adequate policy and enabling legislation, including taxes, to promote LEDS at country level;14

Identify activities in support of the National Strategy for the Sustainable Production and Use of Firewood

(2013‐2024)15 to mitigate use of wood as energy and fuel;

Showcase and replicate certification schemes, i.e., RSPO16, Voluntary Carbon Credit Markets, Corporate

Social Responsibility, etc., that are currently be used by some large‐scale agro‐industrial sectors to introduce low emissions;

Support mitigation opportunities in watershed management plans in protected areas or private nature

/coffee reserves where there is clear interest from local authorities, private sector, and NGOs on the protection of the water sources, alternative energy, and the water supply (e.g., payment of environmental services);

Develop innovative market‐driven, financial instruments, or incentives for large and small‐scale horticulture to promote LEDS.

E. Communication and Education. Establish a cross‐cutting communication and education strategy on climate issues and low emissions development. There are a series of misunderstandings and perceptions around global climate change and lack of understanding about LEDS more specifically that needs to be overcome. While the scientific knowledge and has improved in the last decade, it can be hard to translate technical data into information that is understood by the general public, government officials, and other non‐scientific communities. More work needs to be done to articulate and describe the importance to climate change, the broader implications for both climate change and lowering emissions, as well as dissemination of the risks, costs, and social and political conflicts that may emerge from climate change. In addition, a key part of communications and education should focus on providing information about solutions to climate change and what can be done to change the current trajectory of GHG emissions.

Establish pathways for better communication and education on climate issues for the GOG, the private sector, local and indigenous communities, academia and civil society organizations;

Develop specific communication and education tools according to the prioritized sectors;

Design tools to support the participatory process and transparency, as well as the case studies to promote implementation of LEDS.

4. Coordination and synergy work

USAID/Guatemala has been working with the GOG to ensure coordinated and coherent delivery of its technical assistance for

LEDS through a series of different mechanisms. This program will complement and support this effort by working together and in synergy with the following mechanisms:

a. U.S. Forest Service Participating Agency Program Agreement (PAPA): Under this interagency agreement, USAID/Guatemala intends to provide technical assistance and support to the GOG in two main areas: a) Land

Use and Land Use Change and Forestry (LULUCF) information and mapping capacities, and b) Initial implementation of the national wood fuel strategy.

14 For instance, Guatemala imports 90% of its fuel demand. In spite of this demand, Guatemala exports 100% of its supply of alcohol fuel and 80% of its bio‐oils due to the lack of enabling legislation and the form of taxation.

15 See attached Propuesta de Estrategia Nacional de Producción Sostenible y Uso Eficiente de Leña, 2013‐2024, INAB.

16 Roundtable on Sustainable Palm Oil

b. USAID’s Forest, Carbon, Market and Communities (FCMC): This Washington‐funded program is focused on strengthening the GOG’s capacity to generate scientific and reliable information to promote LEDS.

c. USAID/Guatemala Climate Nature and Communities in Guatemala (CNCG) (2013‐2018): Cooperative

Agreement ($25 million) implemented by Rainforest Alliance, in consortium with the World Wildlife Fund, The

Nature Conservancy, Fundación Defensores de la Naturaleza, the Guatemalan Association of Exporters, and the Universidad del Valle, this mechanism will work directly with the GOG to support the initial stages of LEDS in Guatemala, as well as on Reducing Emissions from Deforestation and Forest Degradation (REDD+).

d. USAID/Guatemala Rural Value Chains Project (RVCP) (2012‐2017) implementation mechanisms ($42 million total for two Cooperative Agreements), part of the Feed the Future Initiative. Implementing partners:

AGEXPORT and ANACAFE. RVCP is focused on horticulture, coffee, and handicrafts value chains in the

Western Highlands, as well as indirect support for adaptation. To expand the potential impacts of this program and to promote the integration of Feed the Future agricultural program activities with Global

Climate Change, strong coordination with these programs is recommended.

e. Inter‐American Development Bank (IDB)’s Programa de Apoyo a la Agenda de Cambio Climático:

USAID/Guatemala has been working closely with the IDB in Guatemala to coordinate technical assistance to the GOG, specifically to MARN and SEGEPLAN. Joint planning and implementation should continue with the IDB under the USAID LEDS contract, including with the Forest Carbon Partnership Facility (FCPF), as appropriate.

5. Annexes and reference materials

a. Inventario Nacional de Emisiones y Absorciones de Gases de Efecto Invernadero, Año Base 2005.

b. Draft: Guatemala: Enhancing Capacity for Low Emission Development Strategy, (EC‐LEDS) Scoping Report, EC‐LEDS Interagency Scoping Team for Guatemala, 2013.

c. Draft: Institutional Assessment and Sectorial Analysis for the Low Emission Development Strategy of

Guatemala, which provides an institutional assessment of MARN and SEGEPLAN and review of Guatemala’s national GHG inventories, USAID Forest Carbon Markets and Communities (FCMC) project, 2013.

d. Propuesta de Estrategia nacional de producción sostenible y uso eficiente de leña, 2013‐2024.