Result of Service

Inception Note – Defining Methodology, data sources, and dynamic CGE modeling framework. - Carbon Pricing Assessment & Modeling Results – Analysis of carbon pricing mechanisms, CGE model outputs, and Article 6 opportunities. - Draft Technical Study & Policy Brief – Assessment of how carbon pricing revenues can support Africa’s green transition. - Revised Study & Policy Brief – Updated analysis and policy recommendations incorporating stakeholder feedback. - Final Study, Model Documentation & Dissemination Package – Final report, policy brief, updated model documentation, presentation materials, and policy engagement support.

Work Location

Home-based

Expected duration

5 Months

Duties and Responsibilities

Background The Africa High-level Working Group on the Global Financial Architecture (HLWG – GFA) is coordinated by ECA and comprises African ministers of finance, planning and economic development, the African Union, the African Development Bank, the African Export–Import Bank and the World Bank Group and includes the participation of staff and executive directors of the International Monetary Fund. The role of the HLWG-GFA has been to monitor and respond to the economic consequences for African countries of continuous shocks, such as the COVID-19 pandemic, the wars in Ukraine and the Middle East, and cuts in official development assistance (ODA). The HLWG -GFA has functioned as a platform for building consensus among African policymakers on specific requests and proposals for reforming the global financial architecture. The HLWG-GFA has been convening since early 2022, both in person and online, in consultation with African finance ministries. ECA has produced the report The IMF and the Future of the Global Financial Architecture to advocate for IMF reforms that empower low- and middle-income countries. To continue strengthening its support to the HLWG-GFA and its secretariat, ECA is seeking the services of a specialized consultant to develop and produce a study entitled Carbon Pricing: How Carbon Revenues Can Finance Green Transition in Africa. Duties and Responsibilities Under the overall guidance of the Deputy Executive Secretary (Programmes) or her mandated representative, the consultant will be expected to undertake, but not be limited to, the following responsibilities:

Undertake an empirical assessment of carbon pricing mechanisms and how they can contribute to optimizing trade and decarbonization, , using Dynamic Computable General Equilibrium (CGE) modelling, simulating different carbon price scenarios based on a low, medium, and high carbon price based on observed carbon prices implemented internationally
Assess the use of revenues for green transition obtained from carbon pricing systems, identifying the conditions needed to channel these funds towards a green economy, including the identification of case studies showing the progress achieved due to the use of these revenues.
Map the carbon pricing instruments currently in operation, under design or under consideration across African countries(i.e. carbon taxes, emissions trading systems, or hybrid schemes), as well as fossil fuel subsidies models currently implemented or to be reformed, and assess the institutional, administrative, and measurement, reporting and verification capacity required to implement a carbon tax or emission trading scheme.
Identify carbon pricing mechanisms that currently accept international carbon credits to offset national carbon price (i.e. Article 6 credits), and mechanisms in which the carbon price can be offset using domestic carbon credits (i.e. Australia, Colombia).
Map Article 6 of the Paris Agreement activity in Africa (i,e, Memorandum of Understanding, Bilateral Agreements), and assess the institutional, administrative, and measurement, reporting and verification capacity required to engage in Article 6 transactions.;
Assess the implications of border carbon adjustment measures, in particular the European Union’s Carbon Border Adjustment Mechanism, for African export competitiveness at sector level, and quantify the revenue that could be retained domestically through the introduction of a domestic carbon price;
Set out the political economy and sequencing considerations that determine whether carbon pricing is adoptable in African contexts, drawing on the experience of countries that have introduced, deferred or abandoned instruments, and propose an implementation pathway differentiated by country type;
Map regional initiatives aiming to standardize environmental quality requirements across a region to allow international carbon trading and use of carbon credits across different carbon pricing mechanisms, and identify the benefits, risks and conditions required to achieve a carbon credit harmonization in Africa.
Develop and prepare a technical study and policy brief that will inform African finance ministries and other policymakers;
Provide substantive support to the HLWG-GFA secretariate, including preparation of briefing materials, presentations, key messages and other advocacy tools related to the study as required;
Support ECA in socializing the study as required;
Submit monthly progress updates to the Deputy Executive Secretary (Programmes) or her mandated representative, and undertake other related tasks as required.

Qualifications/special skills

An advanced university degree (Master's degree) in Economics, Finance, Environmental Economics, or a related field is required. A first-level university degree combined with a minimum of two (2) additional years of relevant professional experience may be accepted in lieu of an advanced degree. A PhD in a related field is desirable. A minimum of fifteen (15) years of progressively responsible experience in macroeconomic policy, economic research and analysis, forecasting, and the application of economic principles in development programmes is required. Demonstrated experience of building, calibrating and running dynamic Computable General Equilibrium models, evidenced by at least two completed applications, with proficiency in a recognized modelling environment such as GAMS, GEMPACK or an equivalent, and familiarity with the GTAP database or comparable social accounting matrix sources, is required. Substantial experience in carbon markets and carbon pricing mechanisms is required. Relevant work experience in developing countries is required. Experience in policy advisory roles for inter-governmental organizations, governments, or regional institutions is required. Demonstrated ability to produce high-quality, policy-relevant reports on economic and climate issues, with strong analytical skills and proven experience in carbon pricing, energy taxation, or environmental fiscal policy analysis is required. Substantial and related experience with Bretton Woods Institutions or Development Finance Institutions is desirable.

Languages

English and French are the working languages of the United Nations. For this position, fluency in English is required. Working knowledge of French is desirable.

No Fee

THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.

TECHNICAL STUDY AND POLICY BRIEF ON CARBON PRICING AND ITS POTENTIAL TO FINANCE AFRICA'S GREEN TRANSITION