Local Consultant - Laos Green Taxonomy

Background:

The Climate Bonds Initiative (Climate Bonds) is an international investor-focused not-for-profit organisation working to mobilise global capital for climate change solutions. The project seeks to support Laos partners with the development of the country’s national taxonomy.  Lao PDR economy highly depends on climate-sensitive natural resources, including forestry and agriculture, and water for its hydro-heavy energy mix and as such is one of the most vulnerable countries due to the impact of climate change. Climate change has resulted in more severe and frequent flood and droughts, costing the Lao economy up to US$665.3 million during 2009-2018 period. Building climate resilience and responding to emergencies mostly rely on external financial support. The country needs increased investment particularly private sector financing to not only build resilience but to accelerate decarbonization across all sectors of economy to achieve its Paris commitments of net zero emissions by 2050. Given Lao PDR’s tight fiscal position, private sector participation in greening the economy is crucial to mobilize resources, knowledge, and technologies to address climate change, capitalize on green growth opportunities and creating green jobs. To meet its interim 2030 Paris commitments, Lao PDR has estimated mitigation financing needs of approximately US$ 4.8b according to Lao PDR’s Nationally Determined Contribution. 

There is an appetite for sustainable development and financing the green transition among FIs and corporates in Lao PDR. However, major challenges remain, including a lack of customer data and measurement standards to determine green performance, and difficulties in quantifying environmental risk and defining “green” within FIs. Additionally, there is a lack of policy and regulatory guidance to support the rolling out of green finance products and instruments. Businesses also face limited technical support and engineering expertise in green products, technology, and process, which hinders their green transition effort. The capacity and knowledge of green finance among market participants and stakeholders are also limited. 

In response, the Lao government is now eager to foster the development of a green finance market in the country by creating a Lao Green Finance Taxonomy tailored to the local context and aligned with the ASEAN taxonomy and international good practices. This taxonomy aims to support and facilitate financial flows toward green and sustainable economic activities. 

A well-defined and structured taxonomy helps FIs and businesses by clearly defining what qualifies as "green," making it easier to identify eligible projects and manage environmental risks. It promotes transparency by providing consistent guidelines for reporting and disclosure, which builds investor confidence and improves access to green finance products like green bonds and loans. Additionally, a taxonomy supports reporting and disclosures, encourages the development of sustainable financial products, and guides businesses in transitioning to greener practices. 

Purpose and Objectives:

The Consultant is expected to provide support to the Head of Taxonomies with the delivery of the Laos green taxonomy development in collaboration with IFC (International Finance Corporation). 

Scope of Services and Deliverables/Outputs:

The tasks under this consultancy are outlined below as well as the number of days per task. The project will be conducted from 17/01/2025 to 30/06/2026 and will use up to 22 business days of the consultant, to be split into the outputs according to the below: 

Expected Outputs & Number of Days: 

The expected outputs below are to be led by Climate Bonds and/or Ambire and the consultant is expected to provide support with the following activities:  

1. Preparatory process for the taxonomy development process: up to 6 days. 
2. Develop an International Standard Industrial Classification (ISIC) spreadsheet with relevant columns breaking down ISIC codes at the activity level for up to 3 priority sectors: up to 2 days. 
3. Develop Technical Screening Criteria for mitigation (and adaptation) for up to 3 priority sectors: up to 7.5 days.  
4. Design the Do No Significant Harm (DNSH) criteria and Minimum Social Safeguards (MSS): up to 2.5 days. 
5. Public Consultation (x2): up to 4 days. 

TOTAL: Up to 22 days 

Timeframe and Milestones for expected Deliverables/outputs:

Task 1: The expected outputs below are to be led by Climate Bonds and the consultant is expected to provide support with the following: 

1. Develop inception plan with detailed methodology, identification of stakeholders to interview, outline of framework report, stakeholder engagement/consultation plan, potential economic sectors to be analysed, resource planning and timeline. 1 week from the start of the contract (Mid-January 2025) 

2. A field mission to Lao PDR is required to collect data, meet with key government counterparts, and conduct a consultation with stakeholders on the taxonomy development. Data collection, prepare and prepare the first draft framework report on Lao Green Finance Taxonomy for the financial sector. 10-14 March 2025 

3. Receive the first draft of the framework report on Lao Green Finance Taxonomy. 1 week after the last of day mission (21 March 2025) 

4. Following the review and feedback on the draft framework report, submit the final framework report on Lao Green Finance Taxonomy. By the end of April 2025 

Task 2: Drafting, consultation, and finalizing Lao Green Finance Taxonomy 

1. Develop and submit a first draft taxonomy based on the framework report for consultation purpose. May- August 2025 

2. Conduct up to two rounds of National Consultations on the draft Lao taxonomy with stakeholders as required. This includes, but not limited to, proving presentation on the draft Lao taxonomy, responding to any technical enquiries from stakeholders, offering expert views and guidance on comments received from the consultation, and addressing other matters as necessary. A field mission to Lao PDR may be required during the consultation process.  August - November 2025 

3. Finalize and submit the final draft Lao taxonomy based on the outcomes of the consultation and decision of the BOL. The final draft Lao taxonomy should be prepared in a form capable of being issued as a guideline or regulations by the BOL. December 2025 

4. Develop and submit a user manual accompanying the final draft Lao taxonomy that includes instructions for disclosure and verification of the taxonomy alignment. January 2026 

Requirements

The consultant should have the following skills and experience:  

• Specialised education no lower than a master's degree in economics, finance or law;

• Relevant background in taxonomy;  

• Knowledge of sustainable finance and policies in Laos;  

• At least 5 years of experience in working with green and climate finance, green economy and decarbonisation of industry;  

• Strong written and analytical skills;  

• Fluency in writing, speaking and reading in English and Laotian; 
• Based in Laos

Benefits

Climate Bonds will pay the Consultant a daily rate fee of USD 300. Thus, the budget for this consultancy is up to USD 6,600 (Six thousand and six hundred) referring to a maximum of 22 days of work. This amount does not include travel costs. In case there are any extra costs, these will be covered separately and only expenditure for reasonable, approved, and documented costs agreed with Climate Bonds’s Head of Taxonomies is allowable.  

Payments will be made quarterly upon (i) submission by the Consultant and approval by Climate Bonds of the deliverables described in item 4, following the proposed timeline; (ii) presentation of monthly timesheets at the end of each calendar month detailing the work undertaken, the time spent on each task and the corresponding payable amount for each period, following Climate Bonds' template.