Call for statement of intent: Support for the Implementation of Mexico and Chile’s Nationally Determined Contributions (NDCs)

This call is closed. The deadline for proposal submissions was March 03, 2017.

A. Background

In November 2015, Prime Minister Trudeau announced $2.65 billion in international climate financing by 2020 to help developing countries tackle the challenges of climate change and support their transition to low-carbon and climate resilient economies. As part of this pledge, Canada committed $35 million (M) to combat short-lived climate pollutants (SLCPs), of which $20M will be targeted for bilateral SLCP mitigation initiatives in key partner countries.

SLCPs include air pollutants and greenhouse gases (GHGs) like methane, some hydrofluorocarbons (HFCs), and black carbon. All are potent global warmers with a relatively short lifespan in the atmosphere, and they play an important role in climate change. Reducing SLCPs can slow warming in the near term while having substantial health and development benefits for communities around the world.

As part of Canada’s targeted support of $20M for bilateral SLCP mitigation initiatives, in November 2016, Minister McKenna announced the initial allocation of $14M in grants and contributions (G&Cs) funding from 2017-2021. This funding supports the implementation of Nationally Determined Contributions (NDCs) under the Paris Agreement in Mexico and Chile through initiatives to significantly reduce SLCP emissions in their oil and gas and waste sectors, respectively. All initiatives funded by this $20M will facilitate the deployment of clean technology, while contributing to Canada’s efforts in meeting our climate commitments for developing countries.

The total amount of funding available under this call for Statement of Intent will support Mexico and Chile in implementing their respective NDCs. It is separated into two streams defined by country and sector of work.

B. Description of projects

B-1. Oil and gas stream in Mexico

The first stream focuses on projects that address the mitigation of SLCPs, particularly methane, from industrial practices in the oil and gas sector in Mexico, including flaring and venting and fugitive emission strategies.

Through their NDC, Mexico has committed to reduce its GHG emissions by 25% by the year 2030 from 2013 levels. The oil and gas sector, totaling nineteen percent of total emissions, is one of Mexico’s largest sources of methane, with emissions from offshore and onshore operations accounting for more than 80 percent of this amount. Canada is seeking to support sectoral methane emission reductions in Mexico with a $7M investment over 4 years.

In Mexico, Canada is proposing a program of verifiable methane emission reductions at oil and gas facilities through the transfer of technical expertise and the provision of technical assistance to support the completion of key steps to systematically identify major cost-effective emission reduction opportunities, evaluate control options, and implement final solutions.

The proposed approach needs to address the following priorities in Mexico:

  • Reducing flaring, venting and fugitive emissions from oil and gas operations;
  • Supporting clean technology deployment; and,
  • Supporting the mobilization of financing for emissions mitigation.

Budget

Amounts in Can$ 2017-2018 2018-2019 2019-2020 2020-2021 Total
Support for NDC Implementation in Mexico $0.7M $2.5M $1M $2.8M $7M

B-2. Waste management stream in Chile

The second stream focuses on supporting the deployment of technology and activities geared at reducing methane emissions in existing landfill sites in selected Chilean cities, while exploring opportunities and planning projects to divert organic matter from landfills.

Through their NDC, Chile has committed to reduce its GHG emissions by 30% by 2030 from 2007 levels. The waste management sector is one of the top three priorities identified by the Chilean government who recently introduced a national strategy aimed at reducing emissions from that sector. The budget for this project will total a $7M investment over 4 years. 

In Chile, Canada is proposing to support the development of a comprehensive package of measures that target the various stages of waste management, with the aim to achieve significant emission reductions and other environmental, economic and social benefits. 

The proposed approach needs to address the following priorities in Chile:

  • Reducing organic and food waste sent to landfills;
  • Retrofitting existing landfill sites with state-of-the-art methane capture technologies;
  • Utilizing landfill gas as an alternative energy source;
  • Designing & engineering new climate-friendly facilities that could include bio-digestion, composting, controlled landfilling, etc.;
  • Supporting clean technology deployment; and,
  • Supporting mobilization of financing for organic waste reduction and emissions mitigation.

Budget

Amounts in Can$ 2017-2018 2018-2019 2019-2020 2020-2021 Total
Support for NDC Implementation in Chile $1M $2M $1M $3M $7M

C. Application process

Interested parties are requested to submit their application under this call through a two-step process which includes:

  • STEP 1 - Submission of a Statement of Intent
  • STEP 2  - Submission of a detailed project proposal

D. Step 1 – Statement of intent

Applicants are invited to provide a brief Statement of Intent of no more than 3000 words explaining how your organization meets each of the selection criteria specified below, substantiated with concrete examples.

Please note that Environment and Climate Change Canada:

  • will not accept any late submissions;
  • will not accept submissions made outside of the email address provided above;
  • will neither assess nor comment on the eligibility of specific potential applicants before submission of the completed application package; and,
  • has set up a multi-sectoral panel comprised of several federal Departments to review submitted Statements of Intent against the criteria (below) and, upon clearance, will communicate with your organization the deadline for submitting your project proposal as part of STEP 2.

If you are unable to respond to any of these criteria, your organization is not eligible to apply under this particular call.

D-1. Eligibility criteria

  • Organization type: This call for proposals is open to a Canadian firm or international organization with Canadian affiliation that has experience working in these sectors that are also legally incorporated or otherwise constituted under the law in their respective jurisdictions. The call is not open to multilateral organizations or sovereign entities (for example, the government of another country).
  • Experience in the oil and gas and waste management sector: Applicants must demonstrate that they have a least one year of experience in successfully managing and delivering emissions reduction projects in the specified sector in developing countries (e.g. parties interested in applying for the Mexican projects must have experience in the oil and gas sector in a developing country).
  • Experience managing public and private funds: Applicants must demonstrate that they have the capacity to potentially manage public and/or private sector funds required to fulfil project implementation.  Applicants must demonstrate that they have the required experience by providing examples of past projects in their Statement of Intent.

D-2. Criteria specific to the oil and gas stream in Mexico

Experience

  • Experience managing and delivering flaring, venting and fugitive emission reduction projects in the oil and gas sector in developing countries.
  • Experience leveraging public and private sector financing to contribute towards project implementation.
  • Experience developing emission factors, inventories as well as developing and implementing Measurement, Reporting and Verification approaches.
  • Experience developing and implementing measurement programs as well as Front-End Engineering Design (FEED) studies and refined Business Plans

Working relationships

  • Strong working relationship with the Mexico state-owned oil and gas company, PEMEX, as well as Canadian enterprises and service and technology providers in the O&G sector is an asset.

D-3. Criteria specific to the waste management stream in Chile

Experience

  • Experience in providing technical design and engineering as well as delivering waste management projects in developing countries.
  • Experience leveraging public and private sector financing to contribute towards project implementation.
  • Experience developing emission factors, inventories as well as developing and implementing Measurement, Reporting and Verification approaches.

Working relationships

  • Strong working relationship with local governments (including municipalities and regional governments) in Chile with regard to waste management projects is an asset.

D-4. Questions

If you have questions about this call, please send them to: ec.climatefinance-financementclimatique.ec@canada.ca no later than March 03, 2017, by 23:59 EST. Environment and Climate Change Canada will not respond to questions about an organization’s specific circumstances or about specific proposals.

E. Step 2: Project proposal

E-1. Process

Once you have submitted your Statement of Intent – STEP 1 – you will be asked, if your application meets the selection criteria, to submit a more comprehensive project proposal that includes:

  • Budget considerations;
  • Proposed activities;
  • Timeframe; and,
  • Expected outcomes.

One project proposal is required per sector. If you are preparing a project proposal for both the Mexican oil and gas sector and the Chilean waste management sector, you will be asked to provide two (2) project proposals.

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