ToR: Iraq-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 Iraq

Request for proposals restricted to consultancy companies only (not individual consultants can apply)

Introduction

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 Iraq, 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 Iraq 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.

The next round of Nationally Determined Contributions (NDC 3.0) due for submission in 2025 provides a pivotal opportunity to meet the goals of the Paris Agreement. Delivering a just transition and thus addressing the employment and social dimensions of climate action is a key enabler of climate ambition and a vehicle of sustainable development. Addressing a just transition meaningfully in NDCs that include private sector vision and role offers a crucial anchor to foster these goals by providing a central entry point for coherence across different policy domains; signalling a clear commitment to inclusive and fair outcomes based on social dialogue and stakeholder engagement; and supporting a whole-of-government, whole-of-society approach to climate action and to sustainable development.  

Specific Objectives

• Identify and analyse, in consultation with EBMOs, the key practical challenges preventing private sector enterprises in Iraq from transitioning to environmentally sustainable and low-carbon operations.
• Assess the current NDCs in Iraq 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.
• Support ILO in the delivery of a 3 days of training to social partners in Just transition, NDCs formulation and strategies supporting the greening and transition of businesses in Iraq towards a low carbon economy
• Support IFI in the development of a policy advocacy paper and key advocacy messages to guide their campaigns supporting a more enabling business environment for the transition of Iraqi companies towards a low carbon economy

Research Questions

This study will address the following research questions:

• To what extent has the government meaningfully consulted EBMOs in developing and updating the Iraq 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 Iraq 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 Iraq’s NDC to better incentivise and streamline a viable, effective, and highest possible ambition to a low-carbon economy in alignment with national circumstances?
• What are the key priorities for the private sector when it comes to Iraq’s short term climate plans and strategies

Methodology and Data

To carry out the analysis of the NDCs, the consultancy team will propose a methodology including a survey to main IFI board members, regional chamber board members and/or  an online questionnaire for the private sector as well as any other qualitative and quantitative research. The methodology will be agreed with ILO and Iraqi Federation of Industries (IFI). 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 Iraq NDC: Nationally Determined Contributions Registry | UNFCCC
• 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 at national and regional level 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 Iraq’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 examples from other countries that could be replicable in Iraq.
• 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 Iraq to achieve an effective transition to a sustainable economy.

Deliverables

The Company shall deliver the following documents in English and Arabic:

1. An initial kick off and validation meeting with main members of the Iraqi Federation of Industries 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 as outlined in annex 1 and a power point presentation summarizing main elements of the study both in Arabic and English.
4. Support in the delivery of a 2 days of training in Iraq and drafting of a 10 pages policy paper on behalf of the Iraqi employers

Expertise and qualifications required

The team assigned to this contract by the company 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 Arab 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 months from the contract signing date.

Deliverables

Work days effort

Estimated date of delivery

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

3

25  th April 2025

Deliverable 2: Desk research and research tools

7

15th May  2025

Deliverable 3: Final study and Power point

7

25th May 2025

Deliverable 4: Training delivery and position paper

5 days

1st June 2025

TOTAL

22 days

Payment schedule

• First payment: The contractor will receive a first payment corresponding to 20% of the total amount upon delivery of output 1
• Second payment: The contractor will receive 80% of total among upon delivery of outputs 2, 3 and 4.

Reporting

The Contractor 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. The consultant will work in coordination with the Just Transition Specialist in the Arab States and will communicate with the ILO Iraq Country Office based in Baghdad.​​​​​​​