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 Coordinationunit 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 PolicyLead, 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 Identificat