Technical consultant on Environmental Finances and M&E systems

Review the international best practices and standards for classifying and labeling operating expenses in climate change and identify relevant stakeholders involved in climate change policy to create a proposal for a national tool that adopts international best practices on classification and labeling of operating expenditures with a climate change approach in Panama
Product No. 1. A comprehensive report that assesses the current best practices and standards for classifying and labeling operating expenses in climate change, including their strengths and possible areas for improvement, taking especial consideration in the current official registry system ISTMO and its revenue and expenditure budget actions in the public sector. This report should present the results through a typology of the climate finance framework, according to its nature, source, execution modality to better identify and review the current international standards of labeling climate finances. Before submitting the report the consultant will conduct meetings with the Ministry of Environment and Ministry of Economy and Finance located in Panama City Panama to gather inputs from such entities to support the development of such a report.
Product No. 2. One detailed stakeholder analysis report that identifies current and possible actors involved in climate change policy, which pursues the fulfillment of SDG and sustainability indicators, as well as stakeholders involved in the budgeting processes established in the general budget administration rules for 2024. For this purpose, the consultant must organize workshops or consultations with the stakeholders and create a summary of key insights and recommendations, were the recommendations and comments related to the changes to be implemented in the regulatory framework for budget or accounting management processes must be highlighted to ensure that methodologies are in place to facilitate the identification and labeling of the impact of operating expenditure on NDC compliance. This product should provide the consultant with an understanding of the current system and identify areas for improvement and propose solutions to address these areas. Output 2. Develop a procedural guideline and framework for the classification and labeling of operating expenses in climate change with clear criteria and indicators for categorizing climate change-related expenses.
**Product No. 3 ** One document with the procedural guidelines and a framework for the classification and labeling of operating expenses in climate change developed, based on the current best practices (Product 1) and the stakeholder’s recommendations (Product 2). Where there are defined and clear criteria and indicators for categorizing climate change-related expenses, which are to be included in the ISTMO platform by the Ministry of Economy and Finance. This deliverable guides the technical aspects of the procedural guidelines, including the elements that will be required, the tools that will be used, and the functionalities that will be implemented.
Specific tasks and responsibilities

• Assess the current best practices and standards for the classification and labelling of operating expenses in climate change, identifying the relevant stakeholders involved in climate change policy and finance.
• Develop and design a new procedural guideline for labelling climate change operating expenses, defining criteria and indicators that apply to the national context
• Carry out the necessary training for the government officials and non-financial public sector institutions and gather feedback to asses applicability.

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. Its mandate is to coordinate the development of environmental policy consensus by keeping the global environment under review and bringing emerging issues to the attention of governments and the international community for action. The UNEP Latin America and the Caribbean Office (LACO), located in Panama City, Panama works closely with the 33 countries of the region. Its activities are integrated into the Medium-Term Strategy and the Programme of Work approved by the United Nations Environment Assembly (UNEA). Throughout UNEP's work, the Paris Agreement on Climate Change marks a turning point to an emerging climate regime that brings all the states and actors together to a new global platform to address the growing risks to our planet. The climate crisis continues to affect the planet and threatens to become irreversible, impacting the territories and populations of Panama and the rest of the world. To comply with the Paris Agreement, Panama has developed a Nationally Determined Contribution (NDC) and a Long-Term Climate Strategy to reduce greenhouse gas emissions and adapt to the effects of climate change. Due to climate change, Panama faces deforestation, coastal erosion, and water scarcity challenges. These challenges have consequences for biodiversity, tourism, and infrastructure. However, Panama is one of the few countries in the world that has achieved carbon negativity, meaning it absorbs more carbon dioxide from the atmosphere than it emits. This achievement is thanks to the country's extensive forest coverage covering over 50% of its land area. The country has implemented various policies and initiatives to promote forest conservation and sustainable land use practices, such as creating protected areas and reforestation programs. The government of Panama has recognized the importance of combating climate change and aligning its financial flows with the Paris Agreement goals. Likewise, the government has also introduced policies to promote renewable energy, energy efficiency, sustainable transportation, and reduce emissions from the industrial sector. Additionally, the country's priority is to align the financial sector's investments with climate goals and establishing a framework for measuring, reporting, and verifying climate finance. Thus, coordination between the Ministry of Economy and Finance (MEF) and the Ministry of Environment (MiAmbiente) is necessary to implement Panama's NDC and LTS. This consultancy aims to create a procedural guide for the classification and labeling of operating expenses in climate change to ensure the timely management of financial and economic information that guides decision-making on climate change. The goal is to ensure that these projects contribute to Panama's NDC and LTS, promote sustainable development, and build resilience to the impacts of climate change. With this in mind, UNEP and the government of Panama have designed a project for the Partnership Action Fund (PAF), funded by the NDC Partnership (Nationally Determined Contributions Partnership). The fund supports NDC enhancement and implementation by reinforcing technical expertise and capacities to address gaps in developing country members. The PAF will complement the NDC Partnership's implementing and development partners' existing support offerings to catalyze further climate action. Among other things, this project will support the implementation of the country's NDCs for their transparency and legitimacy. In this sense, UNEP LACO is recruiting a technical consultant on Environmental Finances and M&E systems for Panama to strengthen their NDCs and Transparency goals. The incumbent will be supervised by UNEP’s Energy & Efficiency Programme Management Officer of the Climate Change Unit for Latin America and the Caribbean Office and will work three out of five days at the offices of the Ministry of Economy and Finance and two days at the offices of the Ministry of Environment of Panama located in Panama City, Panama with a full-time schedule of 8 hours per day, 5 days a week.