1. BACKGROUND

The global Pacific Trade Invest (PTI) Network are the trade and investment promotion agencies of the Pacific Islands Forum Secretariat (PIFS). PIFS provides policy advice and technical assistance to its Members to stimulate economic growth, enhance governance and security for the region and to strengthen regional cooperation and integration. With offices in Australia, China, Europe and New Zealand, the PTI Network is mandated to promote export and investment opportunities for 16 Pacific Island Countries (PICs) that are members of the PIFS: Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Republic of Marshal Islands, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu.

PTI is positioned to facilitate inward investment and connect Pacific Island producers to global value chains with the aim of advancing the economic development of the PICs. PTI seeks and promotes investment through its network and supports the development and promotion of Pacific Island exports. PTI also provides capacity building support to firms seeking to become export-ready and assists in promoting and facilitating export-ready businesses. Attracting quality renewable energy suppliers to PIC’s, reducing carbon emissions and assisting PICS to realise the value of carbon credits are a focus for PTI.

Carbon reduction technology and carbon credit/offset generation, pricing and trading are growing business activities globally given the focus on climate change. Carbon emission reduction and credit studies have not been focused on the Pacific, mainly because of the small contribution they make to global carbon emissions. However, PICs and PTI clients are heavily dependent on fossil fuels as a means of energy generation. A growing number of EPCs and equipment suppliers are entering the Pacific, creating value in carbon credits/offsets. Many businesses and projects in the Pacific are not seen as investor/finance-ready given, among others, a lack of commercial drivers. Business and project sponsors (clients) are relatively unsophisticated and may not factor into their activities the possible value of carbon emission reductions and credits. The commercial viability of projects can be enhanced/confirmed through consideration of the value of carbon credits/offsets which, in turn, will generate the interest of investors. Impact (including environmental) is a key motivation for Australian investors investing in the Pacific. PTI Australia should be fully informed and pro-active when interacting with client businesses and projects which might generate carbon credits/offsets.

2. OBJECTIVES

PTI Australia wishes to recruit the services of a firm or consultant to inform it on suggested applications of carbon credits/offsets to PIC products, activities, businesses, projects and households, as well as links to potential investors, collaborators and stakeholders in this sector.

The firm or consultant will draw on its own body of knowledge and undertake research to provide recommendations on appropriate carbon emission reduction technology, products and activities capable of generating carbon credits/offsets within the Pacific.

3. SCOPE OF SERVICES

The key output of this consultancy is to produce a succinct/high-level report which responds to the following questions:

• What are carbon credits/offsets?

• How are they generated, certified, priced/monetised, traded and monitored/reported? We understand this may vary across jurisdictions so the most common/accepted forms should be outlined.

• Who are the participants and stakeholders in this market?

• What (avoidance and removal) products, projects and activities can generate carbon credits/offsets and how many?

• What are the financial implications of generation – value, sale and purchase prices, P&L and balance sheet treatments, ongoing obligations post-sale? Please provide examples.

• Research on PIC economies, businesses, emission-reduction activities and carbon credit/offset generation, certification and trading environments, and policy and compliance frameworks.

• Suggested application to PIC products, businesses, projects and households to produce investment opportunities, eg. renewable energy of various forms (eg. mini grids, rooftop solar, PV greenhouses, solar lamps/chargers), household appliances (eg. clean cooking), clean water production, organic fertilizer production, electric transport, reduction in water use/wastage, energy efficiency, dwelling insulation, biomass, waste management, agricultural practices, re-planting (land and ocean-based). Please suggest others relevant to PICs.

• Carbon credit/offset generation and financial impact examples of the above.

• Define potential investees/generators, investors (including carbon credit/offset purchasers), collaborators and stakeholders (including multi-national agencies and banks) given the above.

• Options for innovation (eg. branding of Pacific credits/offsets to generate premiums).

• Recommendations on where PTI can focus its efforts, given the above and its mission and service offering.

4. TIMEFRAME

An indicative timetable for the delivery of the consultancy report follows. As a guide to respondents, a report of no longer than 30 pages (excluding appendices) is expected.

Milestone Date

Release of consultancy request and terms of reference End August 2023

Closing date for proposals End W3 September 2023

Award and execution of consultancy contract

kick-off meeting End W1 October 2023

Progress meeting End W3 October 2023

Delivery of draft report End W1 November 2023

Finalisation of report End W3 November 2023

5. RENUMERATION

The consultant is requested to submit a lump sum price in Australian dollars for undertaking the works, and any payment terms.

6. PROJECT MANAGER

The consultant will report to the PTI Australia General Manager, Investment with oversight from the Trade Commissioner.

7. EVALUATION CRITERIA

In assessing respondent submissions, PTI will consider the following:

• Experience in delivering similar bodies of work, including any application to the Pacific;

• Depth of expertise/team/resources, and any partnering with Pacific-based consultancies;

• Price;

• Demonstrated understanding of the requirement/scope of works;

• Proposed methodology, including any innovation and added value;

• Ability to meet the timeline.

Assessment will also be based on conformity to PTI Australia’s procurement policy.

8. TENDER SUBMISSION

Interested parties are requested to submit a proposal for the PTI Australia Carbon Credit Consultancy by 22 September 2023. Submissions should be addressed to:

Pacific Trade Invest Australia

Attention: Mark Clough

General Manager, Investment

Level 4, 503-505 Kent Street

Sydney 2000 NSW

Email: mark@pacifictradeinvest.com