TERMS OF REFERENCE

BUDGET
The budget available to carry out the Services as described below is DKK 80.000 exclusive of Value Added Tax (VAT).

BACKGROUND INFORMATION

About DanChurchAid:
DanChurchAid (DCA) is one of the major Danish non-for-profit organisations and works globally to provide humanitarian and development assistance across 20 countries in Africa, Asia and the Middle East, where DCA has offices. The organisation was established in 1922 and today employs more than 1000 people.

All DCA activities are carried out in support of one or more of these goals: save lives, build resilient communities, fight extreme inequality, and create engagement. DCA has a vision of a world without hunger, poverty, and oppression, in which popular and political powers constantly work strongly and actively for a just and sustainable distribution and use of the earth’s resources. In Denmark, DCA has high credibility among the Danish public and key stakeholders, including both public and private partners and private sector alliances. DCA promotes value-based partnerships and is a well-known advocate for climate justice in Danish and international context, especially through the membership of the global alliance Action by Churches Together (ACT).

DCA recognizes that the rapidly escalating and interlinked climate, environment, and biodiversity crises, or so called triple planetary crisis, are exacerbating existing vulnerabilities of the communities that DCA works with, challenging humanitarian and development efforts and jeopardising their sustainability. Climate change has negatively impacted water and food security, health, settlements, and infrastructure, affecting disproportionately the livelihoods of those most vulnerable, increasing gender and social inequalities, and contributing to humanitarian crises. DCA also recognizes the urgent call from the scientific community to reduce greenhouse gas (GHG) emissions significantly in the near term to limit global warming to 1.5⁰ C above pre-industrial levels in order to significantly reduce the risks and impact of climate change.

In line with DCA’s values, DCA acknowledges its responsibility to reduce the impacts of these crisis and commits to accelerate action and resources to continue mobilising others. As an organisation that is at the forefront of advocating for climate justice in international and Danish fora, DCA is committed to walking the talk, to further integrate climate considerations in our organisational and programmatic actions and to rapidly reduce our carbon footprint.

About DCA’s Climate and Environment policy and carbon footprint reduction target:
DCA updated its Climate and Environment Policy in December 2023 and inspired by the Science Based Targets Initiative (SBTi), set an organisational objective to reduce DCA’s carbon footprint by 46,2% by 2030 compared to 2019 baseline emissions.

In 2021 DCA started measuring the carbon footprint of its operations in Denmark, including offices and retail shops, and has, ever since, also increasingly integrated carbon emissions data from its operations abroad, with the aim of integrating data systematically from all country offices and operations in Denmark using an operational control consolidation approach by 2025.

DCA currently estimates emissions from scope 1, direct emissions from owned or controlled sources such as fuel combustion in electricity generators and vehicles operated by DCA, scope 2, indirect emissions from generation of purchased heating and electricity, and scope 3 category 6, indirect emissions from business travel and aims to broaden the operational boundary to include other relevant categories in scope 3.

As DCA moves forward with its carbon accounting efforts, it is also working to implement measures to reduce, as effectively as possible, its carbon emissions towards its 2030 reduction goal, for this endeavour,

DCA has identified the following levers:
– Implementation of energy efficiency measures in offices and retail shops.
– Installation of solar energy to substitute carbon intensive electricity generation.
– Gradual replacement to electric vehicles for retail fleet.
– Roll-out of green procurement and logistic procedures and tools across the organisation.
– Revision and enforcement of travel policies.
– Other changes in culture, practices, and investments.

According to DCA’s carbon footprint baseline, around 21% of its estimated emissions in 2019 (597 t CO2e) correspond to emissions from electricity consumption, both from grid connections and from diesel generators. DCA operates in countries with high carbon intense electricity such as Zimbabwe, South Sudan, Lebanon, Iraq, Syria and Libya. Furthermore, in some contexts where access to reliable electricity grids is challenging, DCA operates diesel generators. Converting these facilities to solar energy could have both positive carbon impact and a positive financial impact, since solar energy is expected to be cheaper than existing diesel/fossil fuel generation. Therefore, DCA has prioritised and set aside budget for initial clean energy investments as it has high potential for emission reduction. However, the upfront costs, that must be made, can be significant and the returns take several years to realize, therefore it is important for DCA to do this in the most effective way, ensuring that we can get the best CO2 reduction and financial return possible.

In order to develop tangible action and investment plans and to set a roadmap towards reaching our 2030 goal, DCA requires guidance to design the most effective strategy to substitute carbon intensive electricity generation for solar energy in the countries where we work, considering economic and technical feasibility as well as carbon reduction potential. This information will also be a key input for DCA to engage in dialogue with donors and other relevant actors to call for enhanced support for the implementation of carbon reduction measures, as external financial support will be needed to scale up the implementation of these measures. An example, of how other humanitarian organisations are financing carbon reduction measures is UNHCR’s green financing facility.

DCA is signatory to the Climate and Environment Charter for Humanitarian Organisations and is a member of Globalt Fokus’ climate mainstreaming core working group, together with other Denmark-based NGOs. These platforms provide space for knowledge sharing on diverse topics relevant for the integration of climate and environmental considerations into NGOs’ policies, practices, programmes and partnerships, including the uptake of solar energy to reduce GHG emissions of the sector.

Learn more about DCA through our international website: https://www.danchurchaid.org/

DCA’s Climate and Environment policy will be made available to the successful candidate.

CONTRACT PURPOSE AND EXPECTED RESULTS

Purpose and overall objective:

The overall objective of the Contract is to obtain expert advice to design the most effective strategy to substitute carbon intensive electricity generation for solar energy in the countries where we work, guiding DCA’s investments in solar energy systems in the most cost-efficient and sustainable way possible, without compromising the effective delivery of DCA’s core humanitarian and development objectives. The study is also meant to contribute to DCA’s dialogue with donors and other relevant actors to advocate for increased financial support to scale up the implementation of solar systems in DCA operated facilities.

The results of the study will be used for the future purchase of solar solutions under other bid(s), for which the contractor for this study will be excluded.

Deliverables:

The contractor is expected to:

0 – Inception report. Based on the organisation and methodology developed by the successful candidate in the proposal, the inception report should elaborate and finalize the proposed schedule of tasks, activities and deliverables in agreement with DCA’s reference group before going into the full-fledged execution. The inception report provides an opportunity to clarify any potential misunderstanding.

Prioritisation

1.a – Review and provide feedback to DCA’s preliminary prioritisation list of facilities developed based on data collected by DCA on energy consumption and carbon footprint and other organisational priorities. Feedback should also include, if relevant, additional technical and financial criteria for prioritisation of solar investments.

All the relevant data available related to energy consumption, carbon emission calculations and technical data of equipment (e.g. diesel generators, etc.) will be made available for the consultants. If additional data is needed, the consultant will be required to develop a questionnaire / survey to gather the additional information from country offices.

Based on the reviewed prioritisation list, the contractor in agreement with DCA staff, will select at least 4 country offices for further analysis through desk review.

Solutions

2.a – Define minimum and desirable criteria for solar solutions, including technical, cost-efficiency, and sustainability criteria. This should include considerations related to the types of systems to install, quality standards, maintenance services and other relevant environmental and social sustainability criteria. As reference the consultant should consider existing tools for the sector such as WREC’s Project Circular Product Purchasing tool3, as well as DCA’s relevant policies and commitments, such as our commitment to the UN Guiding Principles on Business and Human Rights and DCA’s Procurement Manual, Sustainable Supply Chain Requirements, Green Catalogue and Green Procurement Checklist (to be made available to the successful candidate).

Further analysis in selected countries (at least 4 countries selected as result of 1.a):

2.b – Map available local and/or imported solutions in the selected countries considering the minimum and desirable criteria developed. Potential obstacles to the successful implementation of solar solutions in the selected countries should also be highlighted as part of this mapping exercise.

2.c – Develop a simplified investment scenario considering relevant financial information contextualised to the selected countries where adequate solar solutions were found available according to the mapping. Relevant information to consider includes expected costs of equipment and installation, costs of maintenance and operation, costs of electricity / fuels to be substituted by solar systems, import restrictions and costs, and/or other relevant taxes, etc. The scenario should also recommend the most optimal depreciation rates to apply to these investments.

Recommendations

3.a – Develop recommendations for DCA to maximize results in terms of carbon footprint reduction and cost-efficiency. These recommendations should also consider DCA’s available budget for upcoming years while being able to feed into future dialogue with donors and other actors towards additional financial support to scale up the adoption of solar systems in more country offices.

3.b – Develop simplified tools for DCA to implement its strategy:

1. Draft technical specifications for solar solutions including minimum and desirable criteria (based on results from 2.a). The technical specifications should be developed considering DCA’s relevant procurement guidelines and formats, in a way that they are ready to be used in future procurement processes for solar solutions.
2. Simplified model for calculating return on investments for country offices (based on 2.c).

3.c – Presentation of main results to a DCA internal audience on-line. At the end of the assignment, the consultant is expected to present the main results in an internal on-line session to be coordinated and facilitated by DCA.

ASSUMPTIONS AND RISKS

An important assumption is that the necessary information for the consultant to develop its work will be readily available.

SCOPE OF THE SERVICES

The consultancy is expected to provide recommendations for a global DCA strategy based on the detailed analysis of at least 4 DCA country offices and available global resources. The selected countries will be determined upon agreement with DCA from a list of pre-selected countries developed by DCA based on potential contribution to carbon footprint target and other organisational priorities.

The contract will be managed by DanChurchAid. The contractor will report to Alma Garcia, based in DCA HQ in Copenhagen. A reference group will be established to provide guidance and ensure oversight of key milestones and products of the learning process. This will be composed by representatives from DCA PAL, PROLOG and Country Office representatives.

TIMING, LOGISITICS AND FACILITIES

Maximum two months preferable starting in September 2024.

DCA provides access to online meeting facilities through Microsoft Teams. If offline meetings are held, meeting facilities will be provided by DCA. No other facilities will be provided.

The assignment can be conducted remotely.

REPORTING

A report highlighting the main results and the final recommendations for DCA to maximize results in terms of carbon footprint reduction and financial returns will be required by the end of the consultancy. The report is to be developed in English and to be delivered electronically with all the relevant annexes to the contract manager for approval.

The structure of the report is flexible but should include the following sections:

1 Executive summary
2 Results
2.1 Mapping of available solutions and potential obstacles to the successful implementation of solar solutions in selected countries.
2.2 Results from simplified investment scenarios
3 Recommendations
4 Annexes to include as minimum:
Revised prioritization criteria and list
4.2 Draft technical specifications for solar solutions including minimum and desirable criteria.
4.3 Simplified model for calculating return on investments for country offices (Excel-based).

Include visual graphics in the report as appropriate.

QUALIFICATION REQUIREMENTS

• At least 5 years of experience providing consultancy related to solar solutions.
• Demonstrable experience and/or existing networks in the regions where DCA works.4
• The team must have demonstrable experience in both technical specifications and financial modelling for solar energy solutions.
• Knowledge of solar energy policies and incentives in the regions where DCA works.
• Demonstrated analytical ability and excellent report writing skills.