Papua New Guinea (PNG) faces increasing climate-related risks, with significant implications for its economy, infrastructure, and communities. In recent years, the country has experienced extreme weather events, including floods, cyclones, and prolonged droughts, which have disrupted agriculture, fisheries, and essential infrastructure. These climate impacts threaten sustainable development and underscore the urgency of proactive climate action. In response, the Government of PNG has committed to ambitious climate actions under its Enhanced Nationally Determined Contributions (NDCs) and National Adaptation Plan (NAP). To support these efforts, innovative financial instruments such as Sustainability-Linked Bonds (SLBs) are being explored to mobilize climate finance and incentivize climate-resilient development. For instance, SLBs can link financial returns to measurable environmental outcomes, creating a powerful incentive for both public and private sectors to achieve climate targets.
The Global Green Growth Institute (GGGI) seeks to conduct a comprehensive feasibility study on introducing an SLB mechanism in PNG. This feasibility study is part of the Climate First (CF) Project supported by the Department of Foreign Affairs and Trade (DFAT), which aims to strengthen PNG’s climate finance architecture and mobilize international climate finance. The study contributes directly to the achievement of the CF Project’s Output 2.2 (development of climate rationale for project preparation) and Output 4.3 (development of financing mechanisms). The results will provide evidence-based information to support the design of climate finance instruments and mobilize up to USD 400 million in international climate finance.
This study will assess the viability of SLBs within the local context, examining factors such as institutional capacity, regulatory frameworks, market readiness, and alignment with existing green finance and refinancing facilities. By evaluating the best international practices alongside PNG’s unique economic and environmental landscape, the study will identify opportunities, challenges, and pathways for successfully implementing SLBs. It will also take into account ongoing activities by development partners such as the IMF and IFC, ensuring coherence and complementarity.
A critical component of the study will be a comparative analysis of the costs of climate action versus inaction over a 50-year horizon. This analysis will be disaggregated into adaptation, mitigation, and loss & damage, providing a nuanced understanding of the economic and social consequences of delayed or insufficient climate action. For example, failing to invest in resilient infrastructure could exacerbate damage from cyclones, whereas timely adaptation measures may safeguard livelihoods and reduce long-term economic losses. Similarly, proactive mitigation through renewable energy investments may yield savings compared with the rising costs of carbon-intensive development. By quantifying these trade-offs, the study will provide a strong economic and policy rationale for SLBs as a mechanism to finance climate priorities, ensuring that investment decisions are both efficient and impactful.
Through this feasibility study, GGGI aims to provide actionable recommendations to guide the Government of PNG, financial institutions, and development partners in designing and implementing SLBs. The study will serve as a foundation for mobilizing private sector participation, strengthening national climate finance architecture, and ultimately advancing PNG’s transition towards a low-carbon, climate-resilient economy. By connecting international experience with local realities, this study will illustrate how SLBs can play a pivotal role in closing the financing gap for sustainable development and ensuring measurable climate outcomes.
The overall objective of this consultancy is to provide an evidence-based assessment of the feasibility and potential of introducing a SLBs mechanism in Papua New Guinea. The study aims to support the Government of Papua New Guinea (GoPNG) in understanding the viability, design options, and strategic benefits of SLBs as a tool to mobilize climate finance, incentivize measurable climate action, and strengthen the national framework for sustainable development.
The specific objectives are to:
1. Climate Cost and Investment Case Analysis
2. SLB Feasibility and Institutional Readiness Assessment
3. SLB Framework Development (ICMA-Aligned)
4. Financial and Market Analysis
5. Roadmap for Implementation and Stakeholder Engagement
6. Integration with Development Partner Programs
The Consultant will deliver the following outputs within the agreed timeline. Payments will be made upon satisfactory submission and acceptance of each deliverable by GGGI.
| Deliverable/ Output | Scope of Work | Timeline | Payment (%) |
| 1. Inception Report (Work Plan) | Detailed methodology, including data collection plan, analytical framework, and stakeholder mapping. Outline approach for climate cost modeling, institutional assessment, and SLB framework development. Include initial risk assessment, assumptions, and timeline. Confirm understanding of GoPNG priorities and coordination mechanisms. | Within 10 working days of contract signing | 10% |
| 2. Climate Cost and Investment Case Report | Conduct economic, social, and environmental cost-benefit analysis comparing climate action versus inaction over a 50-year horizon. Include modeling of adaptation, mitigation, and loss & damage scenarios; quantification of potential losses; and linkage to PNG’s NDC, NAP, and MTDP IV. Provide visual data outputs (tables, graphs, and scenario summaries). | Within 25 days of contract signing | 20% |
| 3. SLB Feasibility and Framework Report | Assess PNG’s readiness for SLB issuance, including legal, regulatory, and institutional analysis (Treasury, BPNG, CCDA, etc.), policy review, and market readiness assessment. Develop an ICMA-aligned SLB Framework—defining KPIs, SPTs, bond characteristics, reporting and verification mechanisms—and benchmark against successful issuers (e.g., Chile, Uruguay, Colombia). Include financial and market analysis of investor appetite and potential financial partners. | Within 45 days of contract signing | 30% |
| 4. Stakeholder Validation Workshop | Organize and facilitate a workshop with GoPNG officials, financial institutions, and development partners to present preliminary findings, validate assumptions, and gather feedback. Workshop output should be documented and incorporated into the final report. | Within 60 days of contract signing | 20% |
Note: The consultancy fee is inclusive of all professional fees. Any travel required will be arranged and covered separately by GGGI, in line with applicable policies.
The individual consultant is required to fulfill the following criteria:
| Project: | Individual Consultant – Feasibility Study on Sustainability-Linked Bonds (SLBs) Mechanism in Papua New Guinea |
| Duty Station | Remote with possible in-country consultations |
| Contract Duration | 1st January- 31st March 2026 |
| Consultant Level | Level 6 |
| Total Fees | Up to 50,000 USD |
Candidates shall submit the following documents:
Date to close is Korean Standard Time (KST). Applications submitted after the deadline will not be considered Application. Cover Letter, and CV must be sent in English. A consortium, or a firm may not be engaged for the individual consultant assignment
