Result of Service

The final outcome of this assignment will be the drafting and publication of the ‘Landscape Study of climate risk financing for MSMEs in V20 markets’. The outcomes of the services will be to strengthen the UNEP FI PSI V20 SIF’s implementation of its mandate to support the development of climate smart insurance projects for MSMEs and agribusinesses in V20 markets.

Work Location

Working remotely

Expected duration

5 months

Duties and Responsibilities

The United Nations Environment Programme (UNEis 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 Fis the strategic partnership between the United Nations and over 300 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 workstreams 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 V20 led Sustainable Insurance Facility (SIis a project pipeline development facility, convened under the Principles for Sustainable Insurance initiative (PSto assist the Vulnerable 20 (V20) membership in scoping the financial protection needs of Micro, Small and Medium enterprises (MSMEin the context of climate change and facilitate project concept note and proposal development under the leadership of the V20 Finance ministries. The SIF builds on the demand expressed by the V20 Risk Focus Group during the V20 AsiaPacific Regional Meetings at the Asian Development Bank in Manila in The SIF is operationalized through the SIF Project Office hosted by the UN Environment Programme’s Principles for Sustainable Insurance (PSsupported through the Munich Climate Insurance Initiative (MCIand operates under the guidance of the VThe work of the Office is included in the V20 Work Plan and currently funded by the German Federal Ministry for Economic Cooperation and Development (BM. Hosted by PSI, the SIF Secretariat team builds on PSI’s positioning as a global convener to fulfil the core mandate of the SIF, which is developing country demanddriven proposals and functioning as an impartial matchmaker to link implementation demand and supply. The PSI’s global convening power and industry networks supports the SIF in building regional and local insurance capacities. Moreover, the SIF secretariat leverages the PSI network to identify and realize collaborative potentials between the global and local industry and integrate PSI’s expertise on insurance industry perspectives on climate resilience and low carbon growth. Hosted in PSI, the SIF is also wellpositioned to promote the V20’s sustainable insurance interests on a global level, including through the InsuResilience Global Partnership, the Insurance Development Forum, the Task Force on Climate Related Financial Disclosure and the Sustainable Development Goals. Under the direction and supervision of the PSI Programme Leader, the Consultant will undertake a landscape study of climate risk insurance and financing solutions to MSMEs and the ecosystem that they work with, specifically Banks, MFIs and similar Financial Institutions in selected V20 countries in accordance with V20 SIF’s mandate and workplan. In doing so, the Consultant will liaise closely with SIF Project Office as well as PSI, UNEP FI, and relevant stakeholders (Banks, Insurers, reinsurers, MSMEs, MSME associations, sectoral experts etc.) from V20 countries in the Latin American and Caribbean region, specifically Barbados, Colombia, and Costa Rica. Project Context In V20 economies, micro, smalland mediumsized enterprises (MSME, contribute between 20 and 80 percent of GDP, and are the primary source of income for more than 70 percent of households. They are crucial drivers of socioeconomic growth embedded in virtually every supply and value chain, and arguably a key prerequisite for resilience and government revenue. Despite their vital role, MSMEs are typically particularly vulnerable to extreme weather events which increasingly result in loss of assets, income, or even physical wellbeing. MSMEs’ ability to maintain statusquo is threatened by the frequency and/or intensity of such hazards. They have limited adaptive capacity due to 1) limited resources, 2) lack of useable information on their specific exposure, and 3) lack of access to climatesmart financial products, including insurance. MSMEs, however, do regularly access standard banking products such as credit, savings, payments, and remittances and to a lesser extent, many also access standard insurance coveragessuch as credit life, hospital cash, or personal accidentthrough their bank or MFI. Thus, the increasing risk of sudden shocks to MSMEs can be expected to affect banks’ business performance. SIF, through its work, has found indications that the increasing threat is not matched by widespread mobilization of proven solutions – but the insight remains primarily anecdotal. Analysis of root cause challenges in serving the MSME segment is fractured first by the variety of subsegments (e.g., agriculture, retail, transportatioand the variety of product responses (e.g., heat, rain, wind, et. Without reliable data on the problem, work on solutions is constrained. This project aims to begin to plug the information gap on climatesmart risk transfer for MSMEs in V20 markets. This assignment will assess the status of solutions for MSMEs and the needs of financial institutions that serve them today to accelerate action. This landscape study will be performed simultaneously in V20 markets of AsiaPacific, Africa & MENA, and Latin America & Caribbean, resulting in a publication by UNEP FI. Objectives: • The consultant will undertake ‘Landscape Study of Climate Risk Insurance and Financing Solutions for MSMEs in V20 Markets’ in the V20 Markets from Latin America & Caribbean. • The consultant will undertake detailed country reviews in order to develop comprehensive country profiles under the direction of V20 SIF team. • The consultant will develop a secondary research plan and get it reviewed by V20 SIF team based on the key research questions identified by V20 SIF team. • The consultant will set up and conduct a minimum of 15 virtual interactions with identified stakeholders in the markets identified and will consolidate initial findings for review with other researchers and V20 SIF; and schedule/perform additional interviews based on outcomes of consolidated findings as needed. • The consultant will coordinate activities with consultants engaged for Asia Pacific and Africa, consolidating their findings. • Review draft findings with V20 SIF and develop final report as well as prepare presentation for inperson or online dissemination. Specific tasks and responsibilities: UNEP PSIV20 Sustainable Insurance Facility is seeking the expertise of a qualified consultant to be the ‘Lead Consultant’ for undertaking primary and secondary research in Latin America and Caribbean in coordination with the consultants in the other regions to draft the ‘Landscape Study of Climate Risk Insurance and Financing Solutions for MSMEs in V20 Markets’. For Latin America, the consultant will prepare sufficient secondary research to engage meaningfully in primary research interviews with representatives of financial institutions, government, MSMEs, and development banks in their research countries (as identified by the V20 SI, resulting in draft findings. The following activities would need to be undertaken towards drafting of the proposed project plan, including but not limited to: • Develop research questions and materials based on SIF Project Office guidance; • Complete secondary research based on research questions developed in consultation with SIF Project Office. • Prepare specific objectives, target meetings, and timeline. • Schedule and perform a minimum of 15 interviews each in 3 V20 countries in the Latin America and Caribbean Region with financial industry actors (primarily banks, microfinance institutions, insurerand other institutions (e.g., regulator, MSME association, documenting insights. • Document a minimum of 3 workflows of the practical MSME business interactions with financial institutions in each country, in coordination with SIF Project Office. • Consolidate initial findings for review with other researchers and SIF Project Office; • Schedule/perform additional interviews based on outcomes of consolidated findings; • Prepare interview notes, analyse, and draft findings in coordination with other researchers; • Review draft findings with V20 SIF and be overall responsible for the development of the final report with other researchers. • Prepare presentation for inperson or online dissemination together with other researchers. The consultant shall be under the overall supervision of the Head of UNEP FI and will directly report to the global coordinator, V20 SIF. The consultant will work closely with Regional Coordinators of the V20 SIF team.

Qualifications/special skills

Education: A master’s degree or equivalent in Business Administration, Management, Marketing, Economics, Livelihoods and Employment, Gender Studies, Social Development, or any related field. A firstlevel university degree in combination with twelve (12) relevant work experience may be accepted in lieu of a master’s degree. Professional Experience: Minimum of 10 years of experience in working on inclusive insurance/climate smart insurance/MSME oriented insurance solutions with significant experience implementing inclusive finance in climate vulnerable markets. Experience in multiple V20 countries strongly preferred.

Languages

Languages: English is the working language of UNEP FI. For this post, full proficiency in English with proven ability to draft high quality analysis in English is essential. Knowledge of other United Nations languages are an asset.

Additional Information

Special skills/knowledge: • Minimum of 10 years of experience in working on inclusive insurance/climate smart insurance/MSME oriented insurance solutions with significant experience implementing inclusive finance in climate vulnerable markets. • Experience in multiple V20 countries strongly preferred.

No Fee

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