Request for Proposal For Nature-Related Financial Risk Assessment And Roadmap

Request for proposals for Nature-related Financial Risk Assessment and Roadmap, Indonesia GGGI Indonesia Country Office is inviting eligible consulting firms or a consortium of firms to submit their proposals for the following scope of work: Important note: The Bidder must partner with a local university as a core delivery partner throughout. The proposed local university partner must be identified and included on the technical proposal, together with a description of its role, including research capacity, peer review, and long-term domestic expertise. PROJECT BACKGROUND: The Government of Indonesia has ratified the Paris Agreement late October 2016 and pledged to reduce 31.89% of its emissions compared to the Business as Usual (BAU) by 2030 financed by own resources (unconditional commitment), and committed to 43.20% reductions, subject to international assistance for finance, technology transfer, and capacity building (conditional commitment). Indonesia is the worlds fifth-largest emitter of greenhouse gases and the largest contributor of forest-based emissions, and therefore Indonesias success in achieving its national climate pledges will be critical to keeping the planets temperature rise well below the 2° C threshold called for in the Paris Agreement. Indonesias natural capital tropical rainforests, peatlands, mangroves, and coral reefs underpins approximately 15-20% of GDP and employs over a third of the national workforce. The degradation of these ecosystems creates systemic financial risk through two channels: Physical Risks: Ecosystem service loss (water regulation, pollination, coastal protection, soil fertility) reduces borrower revenues and asset values, increasing NPLs and credit risk across bank portfolios. Transition Risks: Regulatory tightening driven by the Kunming-Montreal Global Biodiversity Framework, international supply chain laws, and updates to Indonesias Sustainable Finance Taxonomy can strand assets in sectors dependent on unsustainable land use. Financial Services Authority (OJK) has made progress through its Climate Risk Management and Scenario Analysis (CRMS) framework and the Climate Risk and Banking Resilience Assessment (CBRA). However, nature loss and climate change are compounding risks: deforestation destroys carbon sinks, while ecosystem collapse amplifies climate vulnerability. Relying solely on climate models leaves a material regulatory blind spot. The project also complements the Bank of Englands Project Delta, which builds capacity for assessing climaterelated physical risks. This work extends that model into the nature domain, incorporating relevant methodologies and insights from Project Delta to ensure consistency with evolving international best practice. This assignment introduces dedicated Nature-Related Value at Risk (nVaR) analytics and macro-financial modelling to capture nature-specific financial risks, with outputs feeding directly into OJKs Sustainable Finance Roadmap 2030. GGGI will procure a consulting firm to deliver this work in close coordination with OJK, Bank Indonesia, and the Financial System Stability Committee (KSSK). ASSIGNMENT OBJECTIVE: In this context, GGGI will facilitate and manage the procurement of a consulting firm (hereinafter referred to as Consultant) to develop a Nature-Related Financial Risk Management in Indonesia, including supporting the institutional capacity of Indonesias financial institutions, and developing a nature-positive finance roadmap. The assignment will run in two parallel phases: - Phase 1 (up to 12 months) delivers a single consolidated analytical report Assessing the Materiality of Nature-Related Financial Risks in Indonesia establishing the evidence base for regulatory action. - Phase 2 runs in parallel to Phase 1, translating emerging findings into three focused deliverables: a concept paper to guide the future implementation of an operational supervisory framework of nature risk for OJK and BI, a nature-related financial risk handbook for banks, and a voluntary disclosure and market development roadmap For further details on the Scope of Work, please refer to the Terms of Reference available under the published Document Set IMPORTANT TIMELINES: The tender submission deadline is 26 October 2026, 16:00 KST (Korean Standard Time) / 14:00 WIB. Note: If any bidder has any request for clarification on the TOR or any part of the tender documents, GGGI will be happy to clarify if the request is received on or before 7 days before the deadline (namely: if the tender submission deadline is 16:00 15 April KST, then the due date for submission of request for clarification is 16:00 8 April KST). Tender Link : https://in-tendhost.co.uk/gggi/aspx/Tenders/Current