Result of Service

The purpose of this consultancy is to support Costa Rica´s and Panama´s regulation of the Sustainable Finance Taxonomy and of the climate-related financial risk framework. A consultant specialized in laws and regulation will be responsible for delivering the technical-legal analysis, criteria and proposed draft text that the competent authorities may use to develop the applicable regulatory framework, its requirements and content, as indicated in these Terms of Reference. Also, the responsibilities and designated tasks related defined for the Financial Superintendencies of each country for their needs must be included and clearly stated in the proposed draft text. This consultancy corresponds to “Output 2.4.2 The sustainable finance taxonomy is developed, piloted, and endorsed by relevant national financial actors.” and “Output 2.4.3 Framework for the identification, assessment and disclosure of climate related financial risks and opportunities for banks, insurance companies, investment funds, and pension funds are developed, piloted and endorsed by relevant national financial actors” for Costa Rica and “Output 2.4.3 Framework for identification, assessment and disclosure of climate-related financial risks and opportunities for banks and cooperatives and investors are developed, piloted and endorsed by the GTFS’s Environmental and Social Risks Analysis Committee” of the GCF Readiness Projects “Aligning financial flows of the financial sector in Costa Rica with the Paris Agreement climate change goals” and “Aligning financial flows of the financial sector in Panama with the Paris Agreement climate change goals.”

Work Location

Working remotely / Home-based

Expected duration

6 months

Duties and Responsibilities

The United Nations Environment Programme (UNEP) is the leading global environmental authority that sets the global environmental agenda, promotes the coherent implementation of the environmental dimension of sustainable development within the United Nations system and serves as an authoritative advocate for the global environment. The overall objective of the UNEP’s Economy Division is to encourage decision makers in government, local authorities and industry to develop and adopt policies, strategies and practices and technologies that promote sustainable patterns of consumption and production, make efficient use of natural resources, ensure safe management of chemicals and contribute to making trade and environment policies mutually supportive. It promotes the development, use and transfer of policies, technologies, economic instruments, managerial practices and other tools that assist in environmentally sound decision making and the building of corresponding activities. The United Nations Environment Programme Finance Initiative (UNEP FI) is the strategic partnership between the United Nations and over 450 banks, insurers and investors. For over 28 years UNEP FI has been shaping and driving the international sustainable finance agenda, setting global standards and growing a global network of leading financial institutions. Through its work-streams and regional activities, peer learning, methodology development, training and research, UNEP FI promotes sustainable finance and helps the financial industry align with and contribute to the Paris Agreement and Sustainable Development Goals. The overall objective of the project in both countries is to encourage decision makers in government, local authorities, and industry to develop and adopt policies, strategies and practices and technologies that promote sustainable patterns of consumption and production, make efficient use of natural resources, ensure safe management of chemicals, and contribute to making trade and environment policies mutually supportive. It promotes the development, use and transfer of policies, technologies, economic instruments, managerial practices, and other tools that assist in environmentally sound decision making and the building of corresponding activities. In 2024 the Financial Taxonomy of Costa Rica and the Financial Taxonomy of Panama was published. In order to provide a robust document as a foundation to enable the regulation of the taxonomies in both countries, the Terms of Reference of this consultancy will be used by the Project Coordination Unit in both jurisdictions to be in charge of the Regulation Consultation, which defines the two segments of the consultancy applied to each country as applicable. These two segments are: (1) the regulatory requirements for the Sustainable Finance Taxonomy in each country in its first edition published in 2024; and (2) the regulation for the tools and content developed on financial climate-related risks framework in Panama and Costa Rica. The consultant will be responsible for providing a document as a final draft of regulatory proposal for the Committee of the Financial Superintendencies, Institutional counterparts, and principal actors in each jurisdiction. This analysis shall consider, among other aspects, the applicable legal and institutional frameworks, international practices and lessons learned, the scope and nature of the proposed regulatory intervention, and use of complementary potential guidelines or procedures. The main objective of this consultancy is to provide financial superintendencies with robust technical-legal inputs and a proposed draft text to support their own regulation of the Sustainable Finance Taxonomy and the financial climate-related risk framework in the country with the corresponding authorities. Through this process, adaptation will transition from a voluntary approach to a regulated framework. The final draft of the regulatory proposal developed through the consultancy shall remain under the responsibility of the national authorities for its use and decision-making, based on their needs. The project seeks a proper execution and monitoring of GCF projects in Costa Rica and Panama, which leads to the country achieving its ambitious long-term climate change strategies and plans. They should also be consistent with long-term planning aligned with the objectives of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement to stabilize the global average temperature at 1.5 to 2 degrees Celsius above pre-industrial levels and increase the country's capacity to adapt to the adverse impacts of climate change. In this sense, UNEP FI is looking for a Technical Legal Expert for Costa Rica and Panama Sustainable Finance Taxonomy regulation and regulation on financial climate-related risks for the GCF Readiness Projects. The Technical Legal Expert will work under the supervision of the Programme Management Officer on Sustainable Finance for the LAC region and will work in close collaboration with the Project Coordination Unit in both countries and national authorities. The incumbent will work from home. Under the guidance of the Project Coordination Unit, technical assistance will be closely coordinated and provided throughout all phases of the process. The consultant will develop the designated tasks and deliverables stated in these Terms of Reference. Additionally, the deliverables and activities should be developed in close coordination with the representatives of the Financial Superintendencies of each country according to the designation of the current governance in each jurisdiction. Objectives: The purpose of this consultancy is to the develop a proposal of the Costa Rica and Panama Sustainable Finance Taxonomy regulation and financial regulation on climate-related risks. Throughout the six months of the contract the consultant will be under the supervision of UNEP FI Coordination unit of both countries to monitoring and validate the preparation and revisions of the regulatory proposals. Also, the consultant will have communication and feedback from the national authorities. Specific tasks and responsibilities: The Technical Legal Expert will perform the following tasks, including but not limited to: · Prepare the legal framework and criteria, and the legal opinion on regulatory authority, assessing the statutory competence of the relevant financial superintendencies and supervisory authorities of Costa Rica and Panama to regulate the Sustainable Finance Taxonomy and the climate-related financial risk framework (Deliverables 1 and 5). · Conduct the technical-legal analysis and comparative-law study of international practices, and develop the technical-legal criteria supporting the proposed regulatory response for each country (Deliverables 2 and 6). · Prepare proposed draft regulatory text, and revisions of it, for the consideration, revision and adoption decision of the supervisors' legal areas, including the required comparative tables for new regulations and for amendments to regulations in force (Deliverables 3, 4, 7 and 8). · Base the climate-related financial risk regulatory work on the technical inputs of the Climate Risk Component consultancy (the policy and regulatory landscape review, the aggregated sectoral synthesis and the technical recommendations for supervisors), coordinating with the consultancy so that the proposed instruments are consistent with the technical findings of the pilot. · Engage with, and incorporate the comments of, the legal areas of the financial superintendencies and the other institutional counterparts of each country throughout the drafting cycle, ensuring that regulatory authorship and the decision to regulate remain with the competent authorities. · Work under the guidance of the PCUs of both countries and the UNEP FI LAC Policy Lead, meeting the deliverable schedule and the review and approval requirements set out in these Terms of Reference. Outputs and Deliverables: First Output: Regulation of the Taxonomy of Sustainable Finance in Costa Rica and Panama. (Corresponding to output 2.4.2 for Costa Rica and output 2.4.2 for Panama) Deliverable 1: Legal Framework and Criteria for Sustainable Finance Taxonomies. (one per country) 1.1 Conceptual Framework of the Regulatory Need and Scope: a document setting out the conceptual framework for the regulatory need and defining the scope of the issues intended to be addressed through the proposed regulation. 1.2 Legal Opinion on Regulatory Authority: A legal opinion assessing the statutory authority of the National Supervision of the Financial System and the financial system supervisory authorities to regulate this matter. In addition, a legal analysis shall be conducted to identify the legal provisions supporting the proposed regulation, as well as relevant judicial and administrative precedents, where applicable, and comparative law studies. Deliverable 2: Technical-Legal Criteria for Sustainable Finance Taxonomies. (one per country) Develop a document detailing the identified regulatory need, as well as the technical, timeliness, appropriateness, or urgency considerations supporting the proposed regulatory response. It shall be based on prior consultations and engagement with the relevant internal technical stakeholders who would be responsible for applying the regulation or supporting its implementation. At a minimum, the document shall include the following sections: 2.1 Comparative Law Study of International Practices: Review of international practices and approaches adopted in other jurisdictions, with the aim of providing a reference for the proposed regulatory framework. The jurisdictions selected for the comparison shall be chosen based, at a minimum, on the following criteria: 2.1.1 Identification of the regulatory challenges and supporting evidence. 2.1.2 Scope, objectives and entities subject to requirements of the regulatory intervention. 2.1.3 Having an internationally recognized financial system, describing the instruments, guidelines, reporting models, registration or disclosure processes. 2.1.4 Similarity to our financial system and national context. 2.1.5 Identification and justification of differences in approaches among supervisory authorities regarding cross-cutting regulations, as well transitional arrangements, exemptions and phased application. 2.1.6 Review of OECD jurisdictions addressing similar issues. 2.1.7 Comparative analysis between voluntary versus mandatory approach. This shall include the advantages, considerations phased implementation in other jurisdictions, agreements, resolutions taking into account the international comparative evidence applied to the institutional context of each country. 2.1.8 Analysis of regulatory alternatives. 2.2 Description of impacts on other regulations, where applicable. In cases involving regulatory amendments, it shall be specified whether the proposed reforms entail amendments to guidelines, agreements, resolutions, or other generally applicable instruments related to the regulatory framework. A checklist for the technical study will be provided, as an additional input to be verified by the consultant, including the supporting evidence and observations for each of the criteria mentioned in this section. Deliverable 3. First draft of the Regulatory Proposal for Sustainable Finance Taxonomies (one per country): This corresponds to the proposal for the adoption of a new regulation, the amendment of an existing regulation, or the reform of a regulation currently in force. The submission shall include the following information and supporting documentation: 3.1 Text of the Regulatory Proposal: The document must contain the draft regulation or amendments to an existing regulation, duly articulated and structured. It shall also set out the technical-legal, and considerations of appropriateness or opportunity underpinning the proposal, which must be consistent with the legal and technical-legal criteria supporting it. 3.2 Technical-Legal Criteria: This corresponds to the revised version of Deliverable 2, incorporating the comments received from the Superintendencies. 3.3 Legal Framework and Criteria: This corresponds to the revised version of Deliverable 1, incorporating the comments received from the Superintendencies. Deliverable 4. Final draft of the Regulatory Proposal for the Sustainable Finance Taxonomies in the Financial System (one per country): Revised regulatory proposal submitted for consideration by the Superintendencies Committee. The document shall incorporate all changes requested with respect to the first draft of the regulatory proposal (deliverable 3). In addition, the consultant shall identify the expected effects of the amendments introduced to the original proposal, update all relevant sections of the document, and summarize the significant revisions made to the previous deliverables. The following documentation shall be submitted: 4.1 Regulatory Proposal: The revised regulatory proposal, incorporating the changes resulting from previous reviews. 4.2 Technical-Legal Criteria: This corresponds to the revised version of deliverable 3.2, incorporating the comments received from the Superintendencies. 4.3 Legal Framework and Criteria: This corresponds to the revised version of deliverable 3.3, incorporating the comments received from the Superintendencies. Where the proposed regulation is applicable to entities regulated and supervised by all Superintendencies, the criteria of the Legal Departments of the other Superintendencies shall also be included. The Legal Assessment shall also indicate whether the changes introduced to the proposal require it to be resubmitted through the corresponding process. 4.4 Comparative Table for New Regulations: In the case of a new regulation, a comparative table shall be provided showing the differences between the first version submitted for revision and the revised proposal (with the Superintendencies’ feedback and comments). 4.5 Comparative Tables for Regulatory Amendments: In the case of amendments to existing regulations, the following comparative tables shall be provided: (i) a comparison between the current text and the proposed amendments; and (ii) a comparison between the version submitted for revision and the revised proposal (with the Superintendencies’ feedback and comments). Second Output: Regulation on climate-related financial risks in Costa Rica and Panama. (Corresponding to output 2.4.3 for Costa Rica and output 2.4.3 for Panama) Deliverable 5: Legal Framework and Criteria for regulation on climate-related financial risks. (one per country) 5.1 Conceptual Framework of the Regulatory Need and Scope: a document setting out the conceptual framework for the regulatory need and defining the scope of the issues intended to be addressed through the proposed regulation. 5.2 Legal Opinion on Regulatory Authority: A legal opinion assessing the statutory authority of the National Supervision of the Financial System and the financial system supervisory authorities to regulate this matter. In addition, a legal analysis shall be conducted to identify the legal provisions supporting the proposed regulation, as well as relevant judicial and administrative precedents, where applicable, and comparative law studies. Deliverable 6: Technical-Legal Criteria for regulation on financial climate-related risks. (one per country) Develop a document detailing the identified regulatory need, as well as the technical, timeliness, appropriateness, or urgency considerations supporting the proposed regulatory response. It shall be based on prior consultations and engagement with the relevant internal technical stakeholders who would be responsible for applying the regulation or supporting its implementation. At a minimum, the document shall include the following sections: 6.1 Comparative Law Study of International Practices: Review of international practices and approaches adopted in other jurisdictions, with the aim of providing a reference for the proposed regulatory framework. The jurisdictions selected for the comparison shall be chosen based, at a minimum, on the following criteria: 6.1.1 Identification of the regulatory challenges and supporting evidence. 6.1.2 Scope and objectives of the regulatory intervention. 6.1.3 Having an internationally recognized financial system. 6.1.4 Similarity to our financial system and national context. 6.1.5 Identification and justification of differences in approaches among supervisory authorities regarding cross-cutting regulations. 6.1.6 Review of OECD jurisdictions addressing similar issues. 6.1.7 Analysis of regulatory alternatives. 6.2 Description of impacts on other regulations, where applicable. In cases involving regulatory amendments, it shall be specified whether the proposed reforms entail amendments to guidelines, agreements, resolutions, or other generally applicable instruments related to the regulatory framework. A checklist for the technical study will be provided, as an additional input to be verified by the consultant, including the supporting evidence and observations for each of the criteria mentioned in this section. Deliverable 7: First draft of the regulation on climate-related financial risks. (one per country). This corresponds to the proposal for the adoption of a new regulation, the amendment of an existing regulation, or the reform of a regulation currently in force. The submission shall include the following information and supporting documentation: 7.1 Text of the Regulatory Proposal: The document must contain proposed draft text for a regulation or for amendments to an existing regulation, duly articulated and structured, prepared for the consideration of the supervisors' legal areas. It shall also set out the technical-legal, legal, and considerations of appropriateness or opportunity underpinning the proposal, which must be consistent with the legal and technical-legal criteria supporting it. 7.2 Technical-Legal Criteria: This corresponds to the revised version of Deliverable 6, incorporating the comments received from the Superintendencies. 7.3 Legal Framework and Criteria: This corresponds to the revised version of Deliverable 5, incorporating the comments received from the Superintendencies. Deliverable 8. Final draft of the regulation on climate-related financial risks (one per country): Revised regulatory proposal submitted for consideration by the Superintendencies Committee. The document shall incorporate all changes requested with respect to the first draft of the regulatory proposal. In addition, the consultant shall identify the expected effects of the amendments introduced to the original proposal, update all relevant sections of the document, and summarize the significant revisions made to the previous deliverables revised. The following documentation shall be submitted: 8.1 Regulatory Proposal: The revised regulatory proposal, incorporating the changes resulting from previous reviews. 8.2 Technical-Legal Criteria: This corresponds to the revised version of product 7.2, incorporating the comments received from the Superintendencies. Where the proposed regulation is applicable to entities regulated and supervised by all Superintendencies. 8.3 Legal Framework and Criteria: This corresponds to the revised version of Deliverable 7.3, incorporating the comments received from the Superintendencies. 8.4 Comparative Table for New Regulations: In the case of a new regulation, a comparative table shall be provided showing the differences between the first version submitted for revision and the revised proposal (with the Superintendencies’ feedback and comments). 8.5 Comparative Tables for Regulatory Amendments: In the case of amendments to existing regulations, the following comparative tables shall be provided: (i) a comparison between the current text and the proposed amendments; and (ii) a comparison between the first version submitted for revision and the revised proposal (with the Superintendencies’ feedback and comments). The consultant will report to: Overall supervisor: The Head of UNEP FI. Direct Supervisor: The Programme Management Officer, UNEP FI. Close Coordination: UNEP FI’s Project Coordinator Units of Costa Rica and Panama.

Qualifications/special skills

Education: Master’s degree in laws, public policy, political science, international relations, or closely related studies, is required. Professional Experience: Seven (7) years of demonstrated work experience in advising projects/initiatives in the public or private sector of Costa Rica or Panama in areas such as Laws, Public or Private sector regulation, academic regulation, legal consultancy for national authorities is required. Previous experience in regulatory processes involving financial supervisory authorities in Central America, specifically in Panama or Costa Rica is required. Previous experience of at least two years working with environmental regulation is required. Profound knowledge of the legal framework applicable in Costa Rica and Panama is required. Experience in engaging with a range of high-level and technical stakeholders and/or officials such as government agencies, policy decision-makers, national authorities is desirable. Experience in positions related to facilitating the participation of government-led stakeholders in setting up program or projects in Costa Rica or Panama is desirable. Professional experience in the LAC region, across countries and projects is desirable.

Languages

Languages: Fluent in Spanish. (required). Fluent in English. (required).

Additional Information

Skills & Knowledge: Proficiency in using Microsoft Package (Teams, SharePoint, OneDrive, Word, Excel, PowerPoint) collaborative platforms (i.e., Google Drive) and virtual meeting platforms (i.e. Webex, Zoom, etc.) is desirable. Clear communication to explain a technical subject to be understandable and applicable in terms of comprehend the regulation is desirable. Awareness, understanding, and openness to understand the Sustainable Finance Taxonomies. Ability to communicate findings to high-level and mid-senior level management. Initiative, sound judgment, and capacity for teamwork. Excellent time management, monitoring, and evaluation skills. Openness to change and ability to receive/integrate feedback. Creating and promoting an enabling environment for open communication. Excellent interpersonal and communication skills. Ability to manage conflict. Demonstrated informed and transparent decision making. Confidentiality.

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.

UNEP FI - Technical Legal Expert to support Costa Rica and Panama regulation on Sustainable Finance Taxonomy and on climate-related financial risks