RequestforProposalsQuantifyingthe“carbonloophole”anditssignificanceforspecificsectorsJuly18,17

RequestforProposals(RfP)Quantifyingthe“carbonloophole”anditssignificanceforspecificsectors

RequestThisrequestforproposalsseekstoidentifyanorganizationinterestedinworkingwiththeClimateWorksFoundation(CWF)toquantifytheglobalembodiedcarbonflowswhichmakeupthe“carbonloophole”,withsomedeepdivecasestudiesintosignificantindustrialsectorsandgeographies.AboutClimateWorksFoundationTheClimateWorksFoundationmobilizesphilanthropicinvestmentstopreventtheclimatecrisisandensureaprosperousfuture.CWFwascreatedtohelptackletheproblemofclimatechangeonaglobalscale,offeringourfunders,grantees,andpartnersthenecessarycombinationofexpertise,insight,andabilitytostrengthentheireffortstodevelopresearchandgenerateinsights,engageindustryandthegeneralpublic,influencekeydecisionmakers,andmobilizeinvestmentstoaddressglobalclimatechange.CWFenvisionsafuturewheretheworld’suseofenergyandnaturalresourcessustainsasafeclimatethatsupportshealthycommunitiesandglobalprosperity.Wealignourworkwiththeinternationally-agreedobjectivetopreventglobalaveragetemperatureincreasefromexceeding2degreescomparedtopre-industriallevels–alevelthatwouldenableustopreventcatastrophicclimatechangeandstabilizetheworld’sclimate.BackgroundcontextandrationaleTheglobalizedtradesystementailssubstantialflowsofgoodsandservicesfromcountriesofproductionandprovisiontodifferentcountriesofconsumption.Inmanycases,andincreasinglyso,themajorityofproductionandprovisionisoccurringindevelopingcountries,withdevelopedcountriesactingasimporters/netconsumers.TheUNFCCC’sgreenhousegas(GHG)accountingsystemworksonthebasisofnationalproductionratherthanconsumptionofemissions.Thismeansthatwhengoodsaretraded,theirembodiedemissions(emissionsassociatedwithmanufacture,e.g.“cradletofactorygate”)arealsotraded.Howevertheseimportedemissionsarenotcountedtowardsacountry’sreportedclimateimpacts.Thismeansthatingeneralwhiledevelopedcountriesappeartobedecarbonizing(atleastonapercapitabasis,orperunitGDPbasis),anddevelopingcountriesseemtohaveincreasingemissions,thistrendis,inpartorwhole,anexternalityofthewaythattradedemissionsareaccountedforininternationalclimatefora.

Thisdiscrepancycanbedescribedasa“carbonloophole”.Itisestimatedthat22%ofglobalCO2emissionscomprisegoodsandserviceswhichhavebeeninternationallytraded1.Betterunderstandingandprovidingsolutionstoaddressthecarbonloopholewillthereforebecriticalinglobalandnationaleffortstodecarbonizeindustry.Tothisend,determiningtheextentofthecarbonloopholeiscriticaltoClimateWorks’broadereffortstopromotetheadoptionofscience-basedemissionsreductionstargetsandScope3supplychaincommitmentsbycompanies.Historicdataandrelevantresearchhavequantifiedthecarbonloopholeatrelativelylow-resolution2butanup-to-dateglobalquantificationisnotavailable.Asanexample,Dr.SteveDavisandtheteamatUCIrvineproducedapaperincludingthedatabaseofglobalemissionsimportsandexportsin2010.3ClimateWorksFoundation’sgoalforthisprojectistoupdatetheexistingbodyofanalysis,includingthelatestavailabledata(andifrelevantnewdatasets).Akeydeliverablefortheprojectisaglobalassessmentoftheextentofthecarbonloophole.Asecondkeydeliverableisasetofhigher-resolution,deeperdivecasestudiesintosectorsandgeographiesofmostimportanceincarbonpollutiontermsandofinteresttoClimateWorks(seebelow).Potentialwaystoupdatethisanalysisonaregularbasis(e.g.annuallyorbi-annually),alongwiththefeasibilityofsuchaneffort,shouldbeincludedinthescope.Inaddition,ClimateWorksintendstopromotekeyfindingswithkeytargetaudiences,includingpolicymakers,NGOs,andthemedia;respondentsshouldthereforedescribemethodsfordatavisualizationandrelatedcommunicationofthekeyfindingsasoutputofthefinalworkproduct.Proposalsshouldincludetheapproachandmethodologywhichwillbeemployedfortheglobalanalysis.Thisshouldincludewhichexistingmodels(e.g.GTAP,WITS)areexpectedtobeused,anyoriginalmodellingthatwillbeused(ourpreferenceisthatexistingmodelsshouldbeusedwherepossible),andproposedwaystofacilitateannualorbi-annualdataupdatestothemodelfromtheoutset.Datasetsthatwillbeusedshouldbeidentifiedintheproposal,alongwiththemostrecentyearavailable.Wedonotexpectresearcherstobeundertakingsignificantnewdatacollection.Proposeddatavisualizationoptionsshouldbeoutlined,alongwithcost.Methodologiesshouldalsobeproposedforthedeepdivecasestudies.Wepreferthatthatthesebeingeographiesand/orsectorsofspecificinteresttoClimateWorks,eitheronthebasisofinterest(e.g.China,USA,Europe),emissionsintensityofproductionand/orsignificanceoftradebetweendevelopinganddevelopedcountries(e.g.ironandsteel,cement,chemicals,apparel),orgeographicalinterest(e.g.London,LosAngeles,Berlin,Paris).

1http://www.biogeosciences.net/9/3247/2012/bg-9-3247-2012.html2TheCarbonMap–http://www.carbonmap.org/#Consumption

StockholmEnvironmentInstitute,2017Consumptionbasedaccountingrevealsglobalredistributionofcarbonemissions–https://www.sei-international.org/mediamanager/documents/Publicaltions/SEI-2017-DB-Dawkins-Croft-CBA-pdf

GlobalCarbonProject-http://www.globalcarbonproject.org/carbonbudget/16/data.htm3http://www.pnas.org/content/108/45/18554.full.pdf

Itisimportantthatteamshavethefollowingcapabilities:

• Robustresearchandanalysistrackrecordandskills;• Strongprogrammanagementabilities,includingacommitmenttoregularupdatesandad-hoc

discussionswithClimateWorksonmethodologywhennecessary;aswellastheabilitytomeetinterimdeadlinesandprovideearlydraftstoClimateWorksforcomment;

• Engagingpresentationskills–weexpectthatatanearlystageofthisproject(September2017),wewillinvitetheprojectleadertopresenttheapproachandscopeofworkataClimateWorkshostedeventonthecarbonloopholeduringClimateWeekNYC.

Weenvisageaprojecttimelineof6monthsfromamulti-personteam,eachdevotingsignificanttimetothisproject.AnimportantoutcomefromthisworkisthecontributionoftheresearchfindingstoClimateWorks’communicationsefforttoestablishtheurgencyofaddressingthecarbonloophole.Thiswillincludetheproductionofhighqualityandengagingdatavisualizations.CommunicationscapacitywillbeprovidedbyClimateWorksasneeded,butweexpectthattheresearchteamwillbeinvolvedandwillingtocontributetothedevelopmentofthecommunicationseffort.Whereorganizations/teamshavespecificcapacityindatavisualization,theyarewelcometoincludedetailsandpotentialcostingforthisintheirproposal.ActivitiesanddeliverablesActivities:Undertakeastudytoprovideaglobalanalysisofthecarbonloophole(tradedcarbon),anddivedeeperintoanumberofcasestudiesatsub-nationaland/orsectorlevel.

• Conductaliteraturesearchtodeterminethecurrentstatusofresearchonthisissueglobally,tovalidatethemodelused,andtoavoidduplicationofwork.

• Usethemostrecentavailabledataandmethodologiestoprovideahighlevelviewofglobaltradedcarbon:

o Methodologyshouldincludecleardefinitionandconsiderationofa“tradedendproduct”,andhowtoaccountfortravelmilesintheproductionprocess.Travelmilesoftradedfinalgoodsarenottobeincludedinembodiedemissionsvalues.

o Methodologyshouldbeopentobeingupdatedregularly(e.g.annually/every2-3years).• Provideascopingoftheprocess,effortneededandfeasibilityofupdatingtheglobalcarbon

loopholeanalysisonanannualormulti-annualbasis.• Conductdeeperdivecasestudieswithanalysisandappropriatestoryboardingofspecialinterest

geographiesandindustrysectors.ThescopeandnumberofthesecasestudiesistobedeterminedinconsultationwithClimateWorks,basedoninitialglobalfindingsandcostpercasestudypresentedintheproposal.Possibleexamplesinclude:

o Californiao OneprovinceinChina

o OnestateinIndiao OneEUcountryo Internationalcitye.g.London,Paris,LosAngeleso Globalironandsteelo Globalcemento Globalapparel

• Scopeandpresentoptionsforproducingengagingvisualizationsofthekeyfindings(thevisualizationitselffallsunderaseparatescopeofwork).

Deliverables:

• Kick-offcallormeetingwithClimateWorks(e.g.ahalfday)atprojectoutsettopresentanddiscussedproposedmethodologyandapproach.

• Bi-weeklycheck-inwithCWFBuildingsandIndustryteamonworkprogress,orasnecessary.• Presentationofinitialglobalresearchfindingsfortradedcarbon.• InterimcallormeetingwithCWFtofinalizethescopeofthedeepdivecasestudies.• Analysisforthedeepdivecasestudies.• Finalreportoftheglobaltradedcarbonresearch.NotethatClimateWorkswillidentifysome

partnerswhowillreviewthework,butthegranteeshouldalsonamearound5peerreviewers.Thereportshouldbepublishablequality,anditislikely(buttobedetermined)thatClimateWorkswillwanttoco-brandthereport.

• Narrativereportsproducedforthedeepdivecasestudies.

Individual/Organizationrequirements• Listofteammembers–1pagemaxCVperindividual• Completedtablewithorganizationalinformation(tableavailableintheAppendix)• 5examplesofsimilarworkpreviouslyundertaken(citations)• Teamsrepresentingaconsortiumofdifferentorganizationsarewelcome

BudgetProposalsarerequestednotexceedingabudgetof$100,000.Pleasenotethatcostisweightedinourevaluationofproposals(seebelow),somethodologiesthatcanleverageexistingworkarerecommended,wherepossible.Whenanoriginalmethodologyisrequiredorsuperior,provideanexplanationastowhyitjustifiesahighercost.TimingThereportshouldbedelivered6monthsaftercontractsigning(expectedMarch1,2018).Applicationinstructionsanddetails

Applicationdeadline:August6,2017Wordlimit:proposalsshouldsetouthowtheactivitiesanddeliverableswillbeundertakenandhowthefinalreportwillbestructured(i.e.theapproach).Asimplebudgettableshouldalsobeincluded,highlightingpersontimeandassociatedcostperactivity/deliverable.ProposalsshouldbeinfonttypeandsizeArial10or12andnolongerthan10pagesincludingCVs,citationsandthebudgettable.AllproposalsshouldbeeitherinWordorPDFformatandshouldbee-mailedtotheDirectorofBuildingsandIndustry,DanHamza-Goodacre,atdan.hamza-goodacre@climateworks.org.Furtherinstructionsregardingyourapplicationinclude:

• Errorsoromissionswillpotentiallydelayordisqualifyyourapplicationfromfurtherconsideration• Nolateorupdatedsubmissionswillbeacceptedafterthedeadlinedate• Anytextoverthewordlimitspecifiedwillbedeletedandnotmadeavailabletoreviewerswhich

maycompromisethequalityandintegrityofyourapplicationForallinquiries,pleasecontactProdiptoRoyatprodipto.roy@climateworks.org.EvaluationcriteriaProposalswillbescoredaccordingtothefollowingcriteria:Approach 50%Team 30%Cost 20%Terms&Conditions(T&Cs)Thedraftglobaltradedcarbonfindingsshouldbedeliveredwithin6monthsofcontractsigning.TheinterimmeetingwithCWFtoscopethecasestudiesisexpectedtobeduringMarch2018.ThefinalglobalreportandcasestudiesshouldbedeliveredbyMarch2018.CWFretainstherighttodesignthereportandpublishhardcopieswhereandwhenneeded.OnthebasisthatCWFisfirstconsultedregardingreferenceofsupport,theT&Cspermitthecontractortopublishandsharethefindingsanddeliverablesfromthiswork.PleasealsorefertoadetailedsetofCWFT&Csintheappendixbelow.Payment50%willbepaiduponcontractsigningand50%uponsatisfactorycompletionofthereport.

APPENDIXContractualT&Cs1. EngagementandDuties.DuringthetermofthisAgreement,theConsultantwillprovide

consultingservicestotheFoundationasdescribedinAttachmentAattachedtothisAgreement(the“Services”).TheConsultantrepresentsthathe/she/itisdulylicensed(asapplicable)andhasthequalifications,theexperience,andtheabilitytoproperlyperformtheServices.TheConsultantwillnotviolateanyagreementwithorrightsofanythirdpartyinconnectionwiththeServicesorotherwisefororonbehalfoftheFoundation.TheConsultantshallbeavailabletoworkatreasonabletimesandforreasonableperiodsoftimeandwillusehis/her/itsbesteffortstoperformsuchthattheresultsaresatisfactorytotheFoundation.

2. TermandTermination.ThisAgreementshallbeginon__________andshallterminateon

_______unlessextendedinwritingbymutualagreementbybothparties.

Notwithstandingtheabove,eitherpartymayterminatethisAgreementatanytimeupon30days’writtennotice.Intheeventofsuchtermination,theConsultantshallbepaidforanyportionoftheServicesthathavebeenperformedpriortothetermination.ShouldeitherpartydefaultintheperformanceofthisAgreementormateriallybreachanyofitsobligationsunderthisAgreement,thenon-breachingpartymayterminatethisAgreementimmediatelyifthebreachingpartyfailstocurethebreachwithin15businessdaysafterhavingreceivedwrittennoticebythenon-breachingpartyofthebreachordefault.

3. Fees.InconsiderationofperformingtheServicesproposedinAttachmentA,totalprofessional

feesandexpensesfortheprojectshallnotexceed____________.TheConsultantshallsubmitinvoicesbasedontheInvoicingScheduleestablishedinAttachmentAandtheFoundationwillpayinvoicesnet30days,upondocumentationthattheappropriateworkhasbeencompletedand/orthesubmissionofoneormoreinvoices.

4. Expenses.TheConsultantshallnotbeauthorizedtoincuranyexpensesonbehalfofthe

FoundationandwillberesponsibleforallexpensesincurredwhileperformingtheServicesexceptasexpresslyspecifiedinAttachmentA.ExpensesexpresslyspecifiedinAttachmentAshallbereasonableandnecessaryandcomplywiththeFoundation’spoliciesandprocedures.Receiptsforallexpensesshallbeincludedwiththeinvoice.TimespentinlocaltraveltoandfromClimateWorksofficesshallnotbeconsideredtimeworked.

5. InsuranceandIndemnification.TheConsultantwillcarryallnecessaryandappropriatebusiness

andprofessionalservicesinsurancecoverageduringthetermsofthisAgreement.TheConsultantwillindemnifyandholdharmlesstheFoundation,itsofficers,directors,employees,sublicensees,customers,andagentsfromanyandallclaims,losses,liabilities,damages,expenses,andcosts(includingreasonableattorneys’feesandcourtcosts)resulting

fromabreachorallegedbreachofanyrepresentationorwarrantyoftheConsultant(a“Claim”)underthisAgreement,providedtheFoundationgivestheConsultantwrittennoticeofanysuchClaim,andtheConsultanthastherighttoparticipateinthedefenseofanysuchClaimathis/her/itsexpense.TheFoundationwillindemnifyandholdharmlesstheConsultant,itsofficers,directors,employees,sublicensees,customers,andagentsfromanyandallclaims,losses,liabilities,damages,expenses,andcosts(includingreasonableattorneys’feesandcourtcosts)resultingfromabreachorallegedbreachofanyrepresentationorwarrantyoftheFoundation(a“Claim”)underthisAgreement,providedtheConsultantgivestheFoundationwrittennoticeofanysuchClaim,andtheFoundationhastherighttoparticipateinthedefenseofanysuchClaimatitsexpense.

6. IndependentContractor.TheConsultant’srelationshipwiththeFoundationwillbethatofan

independentcontractorandnotthatofanemployee.(a) MethodofProvisionofServices:TheConsultantshallbesolelyresponsiblefor

determiningthemethod,detailsandmeansofperformingtheServices.TheConsultantmay,athis/her/itsownexpense,employorengagetheservicesofsuchemployees,subcontractors,partners,oragentsastheConsultantdeemsnecessarytoperformtheServices(collectively,the“Assistants”).TheAssistantsarenotandshallnotbeemployeesoftheFoundation,andtheConsultantshallbewhollyresponsiblefortheprofessionalperformanceoftheServicesbytheAssistantssuchthattheresultsaresatisfactorytotheFoundation.TheConsultantshallexpresslyadvisetheAssistantsofthetermsofthisAgreement.

(b) NoAuthoritytoBindtheFoundation.TheConsultantacknowledgesandagreesthattheConsultantanditsAssistantshavenoauthoritytoenterintocontractsthatbindtheFoundationorcreateobligationsonthepartoftheFoundationwithouttheFoundation’spriorwrittenauthorization.

(c) NoBenefits.TheConsultantacknowledgesandagreesthattheConsultantanditsAssistantsshallnotbeeligibleforanyFoundationemployeebenefitsand,totheextenttheConsultantotherwisewouldbeeligibleforanyFoundationemployeebenefitsbutfortheexpresstermsofthisAgreement,theConsultant(onbehalfofhimself/herself/itselfandhis/her/itsemployees)herebyexpresslydeclinestoparticipateinsuchFoundationemployeebenefits.

(d) Withholding;Indemnification.TheConsultantshallhavefullresponsibilityforapplicablewithholdingtaxesforallcompensationpaidtotheConsultantorhis/her/itsAssistantsunderthisAgreement,andforcompliancewithallapplicablelaborandemploymentrequirementswithrespecttotheConsultant’sself-employment,soleproprietorship,orotherformofbusinessorganization,andwithrespecttotheAssistants,includingstateworkers’compensationinsurancecoveragerequirementsandanyU.S.immigrationvisarequirements.TheConsultantagreestoindemnify,defend,andholdtheFoundationharmlessfromanyliabilityfor,orassessmentof,anyclaimsorpenaltieswithrespecttosuchwithholdingtaxes,labororemploymentrequirements,includinganyliabilityfor,orassessmentof,withholdingtaxesimposedontheFoundationbytherelevanttaxing

authoritieswithrespecttoanycompensationpaidtotheConsultantorhis/her/itsAssistants.

7. Confidentiality.TheConsultantacknowledgesthathe/she/itwillhaveaccesstoproprietaryandconfidentialinformationinordertoperformhis/her/itsduties."ConfidentialInformation”meanstheFoundation’snon-publicinformationincludingbutnotlimitedtobusinessplans,technicaldata,specifications,documentation,rulesandprocedures,contracts,presentations,expertise,businessmethods,productfunctionality,services,data,customers,markets,competitiveanalysis,methodologies,applications,developments,inventions,processes,designs,drawings,algorithms,formulas,orinformationrelatedtobusiness,marketing,orfinance.TheConsultantagreesthatallitemsofconfidentialinformationareproprietaryandshallremainthesolepropertyoftheFoundation.Consultantagrees:

(a) TousetheConfidentialInformationonlyforthepurposesdescribedherein,notto

reproducetheConfidentialInformation,toholdinconfidenceandprotecttheConfidentialInformationfromdisseminationtoandusebyanyonenotapartytothisAgreement,andnottousetheConfidentialInformationtobenefittheConsultantorothers.

(b) TorestrictaccesstotheConfidentialInformationtopersonneloftheConsultantwho(a)haveaneedtohavesuchaccessand(b)havebeenadvisedofandhaveagreedtotreatsuchinformationinaccordancewiththetermsofthisAgreement.

(c) ToreturnallConfidentialInformationintheConsultant’spossessionuponterminationofthisAgreementorupontherequestoftheFoundation.

(d) Toholdinconfidenceinformationandmaterials,ifany,developedpursuanttotheServiceshereunder.

ThiswarrantyshallnotapplywheretheFoundationhasexpresslydirectedtheConsultant,inwriting,todiscloseinformationtoathirdparty,whereinformationhasenteredintothepublicdomain,orwheretheConsultantisrequiredtodiscloseinresponsetoavalidorderbyacourtorothergovernmentalentitywithjurisdiction—providedtheConsultantprovidestheFoundationwithpromptwrittennoticeofsuchdemand(priortoanyscheduleddisclosure).TheConsultantagreesthatduringtheperiodthathe/she/itisprovidingServices,theConsultantwillnotengageinanyactivitythatisinanywaycompetitivewiththebusinessordemonstrablyanticipatedbusinessoftheFoundation,andtheConsultantwillnotassistanyotherpersonororganizationincompetingorinpreparingtocompetewithanybusinessordemonstrablyanticipatedbusinessoftheFoundation.Withoutlimitingtheforegoing,theConsultantmayperformservicesforotherpersonsifsuchservicesdonotrepresentaconflictofinterestorabreachoftheConsultant’sobligationunderthisAgreement.

8. IntellectualProperty.TheConsultantagreesthatalldesigns,plans,reports,specifications,

drawings,schematics,prototypes,models,inventions,andalloftheinformationanditems

madeduringthecourseofthisagreement(“WorkProduct”)andarisingfromtheServicesshallbeandareassignedtotheFoundationasitssoleandexclusiveproperty.

IfConsultant’sWorkProductisbasedonorincorporates,constitutesimprovementsorderivativesof,orcannotbereasonablymade,used,reproduced,ordistributedwithoutusingorviolatingotherrightsownedorlicensedbytheConsultant(andnotassignedhereunder),thentheFoundationshallbegrantedanon-exclusive,global,royalty-free,perpetuallicensetousetheintellectualproperty.

9. GoverningLaw.ThelawsoftheStateofCaliforniashallgoverntheinterpretationofthis

Agreement.AnyactiontoenforcetheAgreementshallbebroughtintheSuperiorCourtfortheCityandCountyofSanFranciscoorintheU.S.DistrictCourtfortheNorthernDistrictofCalifornia,SanFrancisco,California.

10. Miscellaneous.

(a) AmendmentsandWaivers:AnytermsofthisAgreementmaybeamendedorwaived

onlywiththewrittenmutualconsentoftheFoundationandtheConsultant.

(b) Notices:AllnoticesunderthisAgreementshallbeinwritingandshallbedeemedgivenwhendeliveredpersonally;bycourier,overnightdeliveryservice,orconfirmedfacsimile;orthreedaysafterbeingsentbyprepaidcertifiedorregisteredU.S.mailtotheaddressofthepartytobenoticed.

(c) Severability:IfoneormoreprovisionsofthisAgreementareheldtobeunenforceableunderapplicablelaw,thepartiesagreetorenegotiatesuchprovisionsingoodfaith.Intheeventthatthepartiescannotreachamutuallyagreeableandenforceablereplacementforsuchprovisionthen(i)suchprovisionshallbeexcludedfromtheAgreement,(ii)thebalanceoftheAgreementshallbeinterpretedasifsuchprovisionweresoexcluded,and(iii)thebalanceoftheAgreementshallbeenforceableinaccordancewithitsterms.

(d) Counterparts:ThisAgreementmaybeexecutedincounterparts,eachofwhichshallbedeemedanoriginal,butallofwhichtogetherwillconstituteoneandthesameinstrument.

(e) AdviceofCounsel.Eachpartyacknowledgesthat,inexecutingthisagreement,suchpartyhashadtheopportunitytoseektheadviceofindependentlegalcounselandhasreadandunderstoodallofthetermsandprovisionsofthisAgreement.ThisAgreementshallnotbeconstruedagainstanypartybyreasonofthedraftingorpreparationhereof.

OrganizationalDetailsTable(Pleasecompleteonetableforeachpartnerorganisationandaddtablesasnecessary)

Nameoforganization

Nameofmaincontactfortheproposal

Emailaddress

Postaladdress

Postalcode

City

Country

Phonenumber(includinginternationaldiallingandcountrycode)

Organisationwebsite