ToR - Kuwait-Private sector transition to a Low Carbon Economy - Assessing Nationally Determined Contributions (NDCs) from a business perspective and policy implications for the private sector in Kuwait

The Paris Agreement's Nationally Determined Contributions (NDCs) provide a framework for countries to achieve ambitious climate goals. However, achieving these goals depends on the private sector's successful transition to a low-carbon economy. In Kuwait, enterprises face institutional, regulatory and policy challenges that may hinder their ability to align with the Paris Agreement and national NDC targets. A misalignment between the NDC and the business environment could jeopardise progress towards a sustainable economy.

This study aims to analyse the Kuwait NDC and identify specific bottlenecks, barriers and omissions that hinder the structural transformation of businesses towards environmental sustainability. In doing so, it aims to provide pragmatic policy recommendations that employers and business membership organisations (EBMOs) can advocate for to ensure a just transition that is both economically viable and effective in achieving climate goals.

Specific Objectives

• Identify and analyse, in consultation with EBMOs, the key practical challenges preventing private sector enterprises in Kuwait from transitioning to environmentally sustainable and low-carbon operations. Highlight the unique barriers faced by MSMEs in the context of digitalisation, formalisation, and greening of businesses.
• Assess the current NDCs in Kuwait to determine the extent to which they address the practical challenges identified in Goal 1.
• Identify specific areas within the NDC where support or guidance for enterprises may be insufficient or lacking, creating barriers to their transition.
• Develop practical and timely recommendations based on the assessment and feedback from EBMOs. These recommendations will be designed for EBMOs to advocate for, ensuring that future iterations of the NDC are better aligned with the needs of businesses pursuing sustainable transition.

Research Questions

This study will address the following research questions:

• To what extent has the government meaningfully consulted EBMOs in developing and updating the Kuwait NDC, and how has this input shaped its content?
• What are the key practical challenges faced by enterprises, particularly MSMEs, in transitioning to environmentally sustainable, low-carbon operations in the intertwined context of digitalisation, formalisation, and greening of businesses?
• How effectively does the current Kuwait NDC address the specific challenges and needs of the private sector in pursuing environmental sustainability and emissions reductions? Are there any omissions or areas where it falls short? Are there any supporting policies and processes which aim to address such gaps?
• What specific recommendations can be made to revise Kuwait's NDC to better incentivise and streamline a viable, effective, and highest possible ambition to a low-carbon economy in alignment with national circumstances?

To carry out the analysis of the NDCs, the consultant will propose a methodology including if needed qualitative and quantitative research. The methodology will be agreed with ILO and KCCI. The following analytical framework will be used as a roadmap:

Identification of key economic sectors

• Determine which economic sectors are most affected by climate change and climate change policies (i.e. decarbonization plans) and which have the greatest potential for mitigation and adaptation contributions.
• Examples: construction, agriculture, manufacturing, energy, transport, tourism, etc.

Analysis of NDC commitments

• Find Kuwait NDC: kuwait INDCs (unfccc.int)
• Break down the NDC into specific objectives, targets and actions by sector.
• Assess which have direct implications for business, both in terms of requirements and in terms of incentives and opportunities.

Stakeholder consultation

• Conduct direct consultations with EBMOs and with a diverse group of companies, especially from the sectors identified in the first step.
• Use surveys, interviews, and focus groups to understand their concerns, challenges and expectations regarding NDC.

Regulatory and policy analysis

• Review existing and proposed regulations, standards, public policies, and incentives that support NDC implementation.
• Assess whether Kuwait’s NDCs provide an enabling environment for business and identify gaps and shortcomings including by showing examples of NDCS from other countries with clear reference on private sector contribution or strong support on private sector decarbonisation.

Evaluation of financial mechanisms

• Explore the financial instruments, grants, and incentives available to facilitate the contribution of the private sector to the achievement of the NDCs and propose some example from other countries that could be replicable in Kuwait.
• Assess their accessibility and suitability for businesses, in particular MSMEs.

Evaluation of training and technical support

• Assess what technical assistance, training, or resources the EBMOs provide to members to strengthen their capacity to contribute to the achievement of the NDC targets.

Feedback and review mechanism

• Establish an EBMO system through which companies can provide continuous feedback on their experiences, challenges and needs as they work to contribute to the achievement of the NDC targets.
• Advocate for concrete changes to the NDCs based on this feedback.

Communication and awareness-raising

• Assess the clarity and accessibility of information on the NDCs to the business community.
• Assess the knowledge and understanding of EBMOs and businesses of the NDC and its implications.

Monitoring and Reporting

• Identify the mechanisms in place for companies, through EBMOs, to report on their contributions to the NDC.
• Assess whether such mechanisms are easy to use and provide value to companies.

Networking and exchange of best practices

• Identify or suggest platforms where EBMOs and enterprises can share and learn from each other on best practices for aligning with NDCs.

Based on the assessment, EBMOs can develop a set of concrete recommendations for government to improve the responsiveness of NDCs to business needs. This phase should also include the establishment of regular review mechanisms so that the process is iterative and adaptive.

In essence, this framework is designed to be comprehensive and pragmatic, to systematically assess the adequacy of NDCs to business’ needs, and to advocate for necessary changes.

In terms of data, a mix of secondary and primary data collection will be applied. Interviews with EBMO leaders will be conducted to complement the information derived from secondary data and to identify the main barriers faced by enterprises in making such a transition.

• Synthesis of the main findings.
• Final reflections on the importance of aligning NDC with the needs of the private sector in Kuwait to achieve an effective transition to a sustainable economy.

Deliverables

The Consultant shall deliver the following documents in English:

1. An initial kick off and validation meeting with main members of the Kuwait Chamber of Commerce and Industry with a detailed presentation of the working plan, deliverables and methodology.
2. A mid-term report including desk review and revised methodology, research tools (questionnaire, surveys, etc.) to be validated.
3. A final study in English as outlined in annex 1 and a power point presentation summarizing main elements of the study.

The Consultant should possess the following qualifications:

• Advanced degree (Masters or Ph.D.) in a relevant field, such as Climate Change, Environmental Policy, Engineering, Development Economics, Environmental economics, Environmental technology, or any related qualification,
• At least 7 years of professional experience in technical activities related to green growth, climate change, Just transition, climate mitigation activities, and emission trading scheme (carbon market),
• Expertise in conducting climate and economic related assessments in Gulf countries,
• Strong analytical and quantitative research skills,
• Sens of diplomacy and ability to interact with government officials, private sector stakeholders and research institutions,
• Excellent communication and presentation skills.
• Excellent Arabic and English writing skills

Timeframe and payment calendar

The assignment and all their deliverables are expected to be completed withing 1.5 months from the contract signing date.

Deliverables

Work days effort

Estimated date of delivery

Deliverable 1: Kick off meeting, working plan and implementation method

2

25^th September 2024

Deliverable 2: Desk research and research tools

6

15^th October 2024

Deliverable 3: Final study and Power point

7

1st November 2024

TOTAL (400 USD per day)

15 days

6,000 USD

Total including transport

7,000 USD

In case of missions to Kuwait, the consultant will require previous written authorization from ILO and UNDSS clearance. The travel costs will be borne by ILO in an economy round air-ticket and accommodations will be supported by KCCI to a maximum number of 4 -6 days during the contract and upon submission of the receipts and invoices of the expenses following ILO and KCCI travel and transport rules.

• First payment: The contractor will receive 800 USD upon delivery of output 1
• Second payment: The contractor will receive 2400 USD upon delivery of output 2
• Third payment: The contractor will receive 2800 USD upon delivery of output 3

The Consultant will work under the guidance of José Manuel Medina and José Luis Viveros Añorve, ACT/EMP specialists, responsible for coordinating the research and consultant's main interlocutors.  They are responsible for guiding the consultant and ensuring that the products meet the required quality and research standards.

Annex : Tentative Outline

The consultant will propose the structure and content of the report based on the following parameters:

Executive Summary

Introduction

• Contextualisation of the current situation in Kuwait with regard to climate change effect, climate change policies, and environmental sustainability.
• Brief mention of the Paris Agreement and the relevance of the NDC.
• Importance of business involvement in the transition to a sustainable economy.
• Description of the objectives of the study.
• Brief description of the methodology.
• Brief description of the structure of the report.

Chapter 1. Challenges facing businesses in the transition to a low-carbon economy.

• Analysis of the main institutional, regulatory and policy barriers by sector faced by companies in Kuwait in the transition to a sustainable, low-carbon economy.
• Opportunities and benefits of transition.

Chapter 2. NDC Assessment: Gaps and barriers hindering the just transition of enterprises.

• Detailed description and analysis of Kuwait NDCs.
• Linkage with environmental sustainability and climate change objectives.
• Assessment of the alignment of the NDC with the needs and challenges of the private sector identified in Chapter 1.

Chapter 3. Bridging the Gap: Aligning NDCs with Business Needs for a Just Transition

• Recommendations by sector of specific changes required by Kuwait NDCs to incentivise and facilitate a viable, effective, and gradual business transition to a low-carbon economy
• How to scale up successful business practices that are transition or have already transitioned towards environmentally sustainable business models?
• Specific recommendations to foster the decarbonization and environmental sustainability of MSMEs.

Conclusions