RFP2510 Embedding Biodiversity Considerations into Green Finance Policies

1. Background:

The Alliance for Financial Inclusion

The Alliance for Financial Inclusion (AFI) is the world’s leading organization on financial inclusion policy and regulation. Currently, nearly 100 member institutions make up the AFI network including central banks, ministries of finance and other financial policymaking or regulatory institutions from over 85 developing countries and emerging markets. AFI empowers policymakers to increase the access and usage of quality financial services for the underserved through sustainable and inclusive policies and an effective use of digital technologies.

Policies developed and implemented by the members of the Alliance contribute to a range of the Sustainable Development Goals. by Setting their own agenda, AFI members harness the power of peer learning to develop practical and tested policy reforms that enhance financial inclusion with strategic support from both public and private sector partners.

AFI has 7 Working Groups (WGs): Consumer Empowerment and Market Conduct Working Group (CEMCWG), Digital Financial Services Working Group (DFSWG), Financial Inclusion Data Working Group (FIDWG), Financial Inclusion Strategy Peer Learning Group (FISPLG), Global Standards Proportionality Working Group (GSPWG), Inclusive Green Finance Working Group (IGFWG) and SME Finance Working Group (SMEFWG).

As the key source of policy developments and trends in financial inclusion and as the primary mechanism for generating and incubating technical content in the network, the Working Groups serve as “communities of practice.” Providing a platform for knowledge exchange and peer learning among policymakers to share, deliberate and deepen their understanding, the working groups offer leadership and expertise in their respective policy fields and support the network to monitor new developments in emerging fields. The WGs are supported by a full range of capacity building courses and events and in-country implementation projects.

The knowledge generated via the working groups is disseminated for implementation by a range of capacity building activities such as Joint Learning Programs, Member Trainings, Trainings by Private Sector Partners. The practical experience members garner from engaging in peer learning based capacity building is then applied by members as in country implementation projects which are supported by the provision of financial or technical support to AFI member institutions in conducting activities that aim to deliver financial inclusion policies, regulations, supervisory tools or enablers for the development of policies, such as national financial inclusion strategies

The working groups receive strategic guidance and insight from the High-Level Global Standards & Policy Committee, while the Gender Inclusive Finance Committee, supports WGs in integrating gender considerations into all aspects of their work and support members in fulfilling their Denarau Action Plan (2016) commitment to promote women’s financial inclusion.

AFI members have made further commitments in a range of other accords which can be read here.

The AFI’s five regional initiatives support policy implementation in Africa (AfPI), Latin America and the Caribbean (FILAC), the Pacific Islands (PIRI), Eastern Europe and Central Asia (ECAPI) and the Arab Region (FIARI).

Inclusive Green Finance

In 2017, members of the Alliance for Financial Inclusion (AFI) recognized the impacts of climate change on financial stability and most especially on the most vulnerable populations who are in most cases, the unbanked. Through the Sharm El Sheikh Accord on Inclusive Green Finance, the AFI members started to explore these intersections that gave birth to ‘inclusive green finance’ (IGF).

Inclusive Green Finance is a policy approach that leverages financial inclusion to build resilience, adapt to the changing climate, and transition to low-carbon activities amongst low-income populations. It also looks at ensuring that vulnerable groups benefit from financial flows for climate action and are not excluded from the transition to low-carbon and sustainable economies.

AFI’s IGF Working Group, a technical working group has been exploring and leading knowledge development and peer learning on IGF. It has produced guidance documents to support financial regulators and policymakers in designing and implementing IGF strategies. Among its most prominent publications are:

Roadmap for Inclusive Green Finance Implementation: Country Case Studies on IGF Policy Implementation (2024)
Green Transition Measures for MSMEs (2024)
Environmental and Social Risk Management Guidelines (2023)
Roadmap for Inclusive Green Finance Implementation (2022)
Measuring Inclusive Green Finance (2022)
Leveraging Digital Financial Services to Advance Inclusive Green Finance Policies (2022)
Green Credit Guarantee Schemes for MSMEs (2022)
Inclusive Green Finance: From Concept to Practice (2020)
Inclusive Green Finance: A Survey of the Policy Landscape (Second Edition) (2020)

AFI members have been at the forefront of advancing the Inclusive Green Finance (IGF) discourse, emphasizing the critical need to ensure financial access for low-income and vulnerable populations as part of climate action. Through peer learning exercises and technical discussions, members are actively shaping and implementing IGF policies and initiatives within their respective jurisdictions.

Furthermore, the IGF Working Group continues to explore emerging trends and evolving challenges in IGF, with a focus on incorporating regulatory guidance that strengthens resilience and mitigates climate risks for the most vulnerable populations. A key area of exploration is the integration of biodiversity considerations into IGF frameworks, recognizing its role in enhancing climate resilience and sustainable economic development.

2. Introduction and Context:

According with the World Economic Forum, “50% of the global economy is under threat from biodiversity loss”[1]. Biodiversity loss is escalating at an alarming rate, posing significant risks not only to ecosystems but also to financial stability and economic resilience. The 2022 UN Biodiversity Conference (COP15) in Montreal highlighted the urgency of this crisis, warning that human activity is driving a mass extinction event. With over 1 million species at risk of extinction, primarily due to land degradation, deforestation, and unsustainable industrial practices, the implications extend beyond environmental concerns to financial system vulnerabilities.

Biodiversity loss is now recognized as one of the top three global risks for the next decade. Governments, businesses, and financial institutions must adopt bold policy reforms and sustainable investment strategies to integrate nature into economic planning.

Regulators and policymakers must act swiftly to mitigate these risks, as unchecked biodiversity loss threatens economic stability, market resilience, and long-term financial sector sustainability. By implementing nature-based solutions, green infrastructure, and responsible urbanization, the global community can reverse biodiversity loss, strengthen climate resilience, and build a more sustainable and inclusive economy.

3. Overall Objective:

In response to growing interest among AFI members in integrating biodiversity considerations into their Inclusive Green Finance (IGF) policies, the IGF Working Group (IGFWG) has established a dedicated Subgroup to develop a research-based knowledge product. This initiative aims to provide regulatory guidance, policy recommendations, and best practices to ensure that financial sector policies effectively address biodiversity risks and support nature-positive economic development. Key objectives of this KP are:

Analyze the role of financial regulators in embedding biodiversity considerations into green finance policies, financial regulations, and risk management frameworks.
Explore the synergies between biodiversity finance and financial inclusion, particularly in agriculture, forestry, and fisheries, to create sustainable economic opportunities.
Assess the economic and financial stability risks associated with biodiversity loss, including its impact on credit risk, market stability, and investment portfolios.
Explore how financial regulators can integrate nature-based risk considerations into prudential regulations, climate stress testing, and financial inclusion strategies.
Identify policy levers, incentives, and regulatory mechanisms that can drive financial sector engagement in biodiversity conservation and restoration.
Identify financial instruments (e.g., green bonds, biodiversity credits, nature-based insurance) that support biodiversity conservation and climate resilience.
Provide recommendations for financial regulators to ensure that vulnerable populations, MSMEs, and local communities have access to financial services that support nature-positive livelihoods.

4. Scope of Work:

The Consultant or Consultancy Firm will work under the guidance of the AFI IGFWG Subgroup members to develop comprehensive research on integrating biodiversity considerations into Inclusive Green Finance policies. This research will provide actionable insights for financial regulators, policymakers, and financial institutions, equipping them with the knowledge and tools to embed biodiversity considerations into regulatory frameworks, financial strategies, and risk management practices.

The research will include, but not be limited to, the following key aspects:

Examine global best practices and regulatory approaches for linking biodiversity and IGF.
Assess financial sector vulnerabilities related to biodiversity loss and its economic implications.
Identify policy levers, incentives, and financial instruments that support biodiversity conservation and climate resilience.
Provide strategic recommendations for mainstreaming biodiversity within green finance regulations and financial inclusion policies.

The Consultant is expected to:

a. Develop an Inception Report. The Inception Report will provide a structured work plan serving as a foundational document to guide the project’s implementation. The report will be concise yet comprehensive (not exceeding 15 pages) and will include, but not be limited to, the following key sections:

Introduction – Contextual background on the topic, its relevance, and the rationale for the project.
Objectives and Scope of the Project – Clear articulation of the project’s goals, expected outcomes, and the specific focus areas to be addressed
Methodological Approach – Description of the research methods, data sources, analytical frameworks, and stakeholder engagement strategies to be employed.
Implementation Timeline – A detailed project timeline, outlining key milestones, deliverables, and deadlines to ensure structured execution.
Risk Assessment and Mitigation Measures – Identification of potential risks that may impact project implementation, along with proposed mitigation strategies to address them effectively.
Annexes – Supporting documents, references, and any additional relevant materials that provide further depth to the report’s findings.

b. Develop the Knowledge Product (Research Document) “Embedding Biodiversity Considerations into Green Finance Policies: A Regulatory Perspective on Inclusive and Sustainable Development”. The consultant will be responsible for developing both draft and final versions of this document. Key components:

Executive Summary

Summary of the importance of biodiversity in financial stability and the role of green finance in mitigating risks.
Concise overview of the research, highlighting key findings, recommendations, and policy implications.

Introduction and Context

Background on biodiversity loss as a global risk and its financial sector implications.
Importance of regulatory action in integrating biodiversity considerations into IGF policies.
Justification for the research paper, aligning with global sustainability goals and AFI members’ priorities.

Objectives of the Research

Clear articulation of research objectives focused on regulatory guidance, policy recommendations, and financial inclusion strategies.
Explanation of how the research will support financial regulators and policymakers in embedding biodiversity considerations into risk management and green finance frameworks.

Regulatory Frameworks to address the linkage between Biodiversity Finance and Financial Inclusion

Assessment of the economic and financial risks associated with biodiversity loss.
Analysis of how biodiversity risks affect credit risk, investment portfolios, and financial market stability.
Examination of the link between biodiversity finance and financial inclusion, with a focus on agriculture, forestry, and fisheries as key sectors and nature-positive livelihood opportunities for vulnerable populations, MSMEs, and rural communities.
Review of existing regulatory frameworks and policies addressing biodiversity in green finance and strategies for financial regulators to ensure access to biodiversity finance for underserved groups
Desk research of how financial regulators in various jurisdictions are incorporating biodiversity-related risks into prudential regulations and supervisory guidelines.
Identification of policy levers, regulatory mechanisms and regulatory disclosure requirements that can drive financial sector engagement in biodiversity conservation.

Recommendations for Policymakers and Regulators

Actionable policy recommendations for integrating biodiversity considerations into inclusive green finance frameworks.
Proposed guidelines for central banks, financial supervisors, and policymakers on embedding biodiversity into prudential frameworks.

Conclusion

Final reflections on the importance of financial sector engagement in biodiversity conservation.
Summary of key takeaways and the role of regulators in creating a resilient, nature-positive financial system.

Annexes & Supporting Documents

References and sources used in the research.
Glossary of key terms and concepts related to biodiversity, green finance, and financial inclusion.
Description of research methods, including desk research, stakeholder consultations, and case studies.

c) Develop a Key Facts Sheet, a concise two-page summary highlighting the key insights, findings, and recommendations from the Knowledge Product (KP) for quick reference and stakeholder engagement.

d) Presentation of the KP to AFI members in a virtual meeting/webinar

5. Timeline and Deliverables:

The consultant or consulting team is expected to commence the assignment by 31 March 2025 and complete the deliverables by 29 August 2025. The timeline and key deliverables are listed in the table below:

No.	Activities and Deliverables	Indicative Timelines	Estimated no. of working days (to complete deliverables)
1.	Inception Report Draft of the inception reportFinal narrative report, taking into account feedback received	March 2025 – April 2025	7 days
2.	Knowledge Product (Research) on “Embedding Biodiversity Considerations into Green Finance Policies: A Regulatory Perspective on Inclusive and Sustainable Development” Draft of the reportFinal reportKey Facts SheetPresentation	May 2025 – Aug 2025	20 days

6. Travel:

No Travel is expected for this assignment. The consultant(s) will work remotely and undertake virtual meetings to complete the tasks.

7. Consultant Experience:

The consultant or consultancy firm undertaking this assignment should have the following qualifications at minimum:

8+ years of professional experience in broad financial regulation, green finance, sustainable finance, financial inclusion, climate or environmental policy and international development.
Advanced degree (Master’s or Ph.D.) in Economics, Finance, Environmental Economics, Public Policy, Sustainable Development, or a related field. Additional certifications in sustainable finance, ESG investing, biodiversity finance, or financial regulation are desirable.
Experience in sustainable finance, inclusive green finance, green or blue finance or biodiversity finance, particularly from a policy and regulatory perspective.
Strong understanding of financial sector policies, risk management frameworks, and regulatory requirements related to environmental and climate risks.
Experience working with central banks, financial regulators, development banks, financial institutions, and international organizations on sustainability and green finance topics is desirable.
Expertise in conducting desk research, literature reviews, and policy analysis on green finance, financial inclusion, and biodiversity-related risks.
Excellent oral, writing and presentation skills in the English language is compulsory.
Prior experience in technical writing is highly desirable.

8. Payment Terms

The payment terms proposed for this consultancy are as following:

No.	Deliverables	Percentage
1.	Upon submission and acceptance of Final Inception Report	20%
2.	Upon submission and acceptance of first draft of the KP	40%
3.	Upon submission and approval of the final draft, completion of the Key Facts Sheet, and successful delivery of the presentation	40%
		100%

9. Administrative Information:

9.1 Disclaimer

The final decision on the selection of a consultant/consulting firm for this project rests with the AFI management team and with the Inquiry. Only shortlisted and successful consultants will be contacted.

9.2 Proposal Submission Information

Proposals will be due with the following requirements for submission:

Submission Deadline:	March 7, 2025
Documents to be submitted with Annexure 1 and 2:
Firm	– Company Registration; – Company Profile; – List of previous or current clientele of similar work; – References with email contact; Joint-Agreement (if any); – Conflict of Interest Disclosure form; – At least one (1) sample work (link or attachments) if any.
Individual	– Full CVs with list of previous similar work; – Disclosure if individual have a full time or part time employment contract with any organization or government official or indirect involvement in this tender – Joint or Partnership Agreement (if any) – Conflict of Interest Disclosure form Reference letter (if any) – References with email contact – At least one (1) sample work (link or attachments)
Method of Submission:	By email to AFI’s Procurement & Contracts Office at RFP2510@afi-global.org
Submission of Technical and Financial:	1. Kindly submit the followings: Using the template/format given in Annexure 1 (Technical) and Annexure 2 (Financial) and/or additional technical proposal for more information. 2. Technical and Financial proposal must be separated into different pdf. 3. Financial proposals must be USD only. Whereas for Malaysian applicants with Business Registration under Suruhanjaya Syarikat Malaysia (SSM), please submit your financial proposals in MYR. 4. Proposal to be submitted to the designated email address. 5. AFI does not tolerate copyright infringement, including but not limited to infringement, in the form of plagiarism. Consultant or Consulting entity awarded a contract by AFI shall take responsibility to ensure that the authored works, produced in parts or as an entirety of the deliverables stated in this RFP does not infringe on copyrights.
AFI is not bound to accept the lowest quoted bid and reserves the right to disqualify incomplete submission, overlapping submission, non-compliance to the above requirements. Notification of results will only be sent to shortlisted candidates upon completion.

9.3 Retention of Proposals

All proposals submitted become the property of AFI. AFI will make all reasonable efforts to maintain proposals in confidence and will release proposals only to personnel involved with the evaluation of the project. Proprietary information should be identified in each proposal.

10. Reporting:

Throughout the contract period, the Consultant will be reporting regularly to AFI Team and BoM Team on a schedule mutually agreed by all parties.

11. Criteria for Evaluation

The proposals submitted will be evaluated based on the following criteria:

No.	Technical Scoring Criteria	Percentage
1.	Academic Qualification;	10%
2.	Experience and competence of the key staff for the assignment related;	50%
	Financial regulation, financial risk management, or financial inclusion policies	25%
	Climate finance, green finance, or sustainable finance policymaking, climate and environmental policies and developments, climate investments and other financing policies/mechanisms related to climate finance or sustainable finance	25%
3.	Adequacy of the proposed work plan and methodology in responding to the Terms of Reference	30%
	Technical approach and Methodology	10%
	Conceptual framework of the proposal including a demonstration of logical and clear planning to execute tasks and complete deliverables	10%
	Risk Assessment linked to the consultancy	10%
4.	Sample work – Writing experience and English	10%
Total:		100%

12. Evaluation of technical and financial proposals

AFI reserves the right to award the most suitable proposal based on the evaluation of combined criterion, where bidders are qualified by the combined valuation of the technical and financial proposals, with the following weightage:

a) Technical Proposal: 70% (Seventy percent);

b) Financial Proposal: 30% (Thirty percent).

How to Apply

Interested applicants are expected to submit a proposal with an updated CV and using the template given by email to AFI’s Procurement & Contracts Office at RFP2510@afi-global.org by 7 March 2025.

Note: AFI does not tolerate copyright infringement, including and not limited to infringement, in the form of plagiarism. Consultant or consulting entity awarded a contract by AFI shall take responsibility to ensure that the authored works, produced in parts or as an entirety of the deliverables stated in this RFP does not infringe on copyrights.

The final decision on the selection of a consultant/consulting firm for this project rests with AFI management team and with the Inquiry. Only shortlisted and successful consultants will be contacted.