Objective of the RFP

Terra Global seeks to identify nature-based solutions (NBS) projects and jurisdictional programs that can be funded with private sector Climate Finance¹ to reach long-term financial, social, and environmental sustainability. Funding may be provided through upfront investments, long-term purchases of verified emission reductions, and removals from projects and programs that produce climate, social, and biodiversity benefits.

Terra Global will evaluate projects and programs that seek to receive Climate Finance to finance a collaboratively developed set of activities that can scale sustainable income streams for local communities and produce verified emission reductions and/or removals for reducing deforestation and degradation and increasing trees on the landscape. For projects and programs selected under this RFP, Terra Global will work with the project owners to develop a Carbon Eligibility Assessment under Phase 2 of the investment process, which seeks to make the business case for using Climate Finance.

¹Climate Finance provides upfront investments for project implementation and carbon development costs in exchange for receiving future verified emission reductions.  This also includes a long-term forward purchase of verified emission reductions from the Project or Program.

Eligibility Criteria

This competitive proposal process is open to national and local governments, NGOs, private entities, civil society organizations, indigenous groups, cooperatives, and private landowners. Projects and programs must have a sufficient level of definition for the proposed change in practices from “business as usual” to apply for this RFP.

The following eligibility criteria will be applied to the screening and selection process:

Geographies

• Tropical or subtropical countries
• Areas where forest areas are threatened (if seeking to reduce deforestation)
• Non-forest areas that have biophysical conditions for planting
• Countries that have participated in the Forest Carbon Partnership Facility (FCPF) REDD+ readiness process or UNREDD are preferred
• For jurisdictional programs, the area is defined at the national level or first-level administrative boundary
• Areas may include mangroves and peats

Project and Program Types

Terra Global seeks to identify and support projects and jurisdictional programs that include one or more of the following sets of activities.

REDD+ and Ecosystem Protection

Reduction of emissions through the avoidance of deforestation and/or degradation, which is either planned (legally) or unplanned (non-legally sanctioned).

These include but are not limited to:

1. Avoided unplanned deforestation and degradation for areas that demonstrate threat from historical deforestation or due to new infrastructure (bridge, road, etc.) that will increase access to the forest (AUDD)
2. Logged to protected for areas with legally sanctioned logging (LtP)
3. Reduced impact logging (RIL)
4. Avoided planned deforestation to agriculture with immediate and specific threat (APD)

Nature Restoration - Tree Planting and Restoration

Activities that focus on increasing tree cover in the landscape which generally remove CO2 from the atmosphere. These will generally be planned for implementation in non-forest areas but may include, in some cases, highly degraded forest areas.

These include but are not limited to:

1. Tree planting for agroforestry systems for food and cash crops
2. Tree planting for agroforestry systems for high-value crops
3. Tree planting for conservation
4. Establishment of woodlots
5. Assisted natural regeneration and/or woodland management.
6. Peatland rewetting
7. Mangrove restoration

Other Nature-based Project Types

In addition to Protection and Restoration, on a case-by-case basis, activities that improve the use of natural resources. Generally, these will be considered part of a Protection and/or Restoration program.

These include but are not limited to:

1. Adoption of improved agricultural practices that are of sufficient scale and beyond common practice:
   
   • Rice production
   • rangeland management
   • cropping systems
   • other practices related to production which lower emissions
2. Rural energy and other wood-saving devices
3. Biochar for soil augmentation

Level of Readiness

To be considered, projects must have the following minimum readiness requirements:

1. Proposed project or program area is defined, and maps and boundary files can be provided.
2. Land tenure of the area is defined and secured, or it can be demonstrated how it would be secured as part of the activities (land tenure holders must be directly engaged in the project or program).
3. Baseline conditions such as 1) current land use, 2) level of historical deforestation/degradation including an understanding of drivers, agents, and underlying causes known, and 3) if non-forest conditions must be known with estimated year last forested.
4. A high-level set of proposed activities that demonstrates the practices and changes to produce emission reductions and/ or removals.
5. Communities in/near area are known, and initial engagement of communities is conducted.
6. If legal harvesting or conversion, supporting documents are required.
7. If the reforestation is in a commercial plantation, it must be mixed species, apply FSC (or equivalent), and have at least 10% of non-commercial areas for conservation purposes.
8. On-the-ground implementing entity(ies) that will support the implementation of identified activities and have organizational capacity.
9. Budget estimates for the implementation of activities must be developed, even at a high level.

Project Size Guidelines

The following size guidelines should be considered. Project may be designed in phases where new areas that are in the same geography and seek to promote the same activities are added over time. Projects with carbon-rich forests (peat, mangroves) may have smaller sizes than those listed below. In addition, projects and programs that combine different types of activity may support lower minimum sizes. Areas may be grouped if they have similar conditions and planned activities.

REDD+ and Ecosystem Protection

1. Avoided unplanned deforestation and degradation for areas that demonstrate threat (35,000 hectares)
2. Logged to protected for areas with legally sanctioned logging (50,000 hectares)
3. Reduced impact logging (50,000 hectares)
4. Avoided planned deforestation to agriculture (5,000 hectares)

Tree Planting and Restoration

1. All tree planting projects (minimum 3,000 hectares) and can demonstrate the ability to scale to at least 5,000 hectares over time.
2. Assisted natural regeneration and/or woodland management (20,000 hectares)
3. Peat rewetting and mangrove restoration (evaluated on a case-by-case basis)
4. Improved agricultural practices (evaluated on a case-by-case basis)

Other Nature-based Project Types

The minimum sizes for these projects will be looked at on a case-by-case basis, with a general rule that agricultural projects would need to scale to 50,000 to 100,000 hectares over time.

Ineligible Project and Program

The following are ineligible for Climate Finance:

• Projects which require financing of land purchase costs (unless carbon revenue is used to repay a loan)
• Projects and programs where the land tenure holders are not directly engaged in the Climate Finance transaction.
• Plantations or other monoculture systems
• Lands where tenure is not (or cannot be) formally recognized.
• Large commercial-scale agribusinesses (for improved agricultural practice projects)
• Projects that are too small and do not justify at least a $1 million upfront investment.
• Countries sanctioned by the U.S. government, EU, UK, UN, or other regional agencies.

Application Process

Proposals must be submitted through the link below, including all support information and documents. Only complete applications will be reviewed and screened.

Applicants must complete the questionnaire at the following link: Terra Global Capital RFP.

Applications must be submitted with any supporting documentation electronically to partnersourcing@terraglobalcapital.com. In addition to the application form, we require project area maps in file types such as .kml, .kmz, or .shp. Additional supporting information, such as project plans, budgets, and related studies, may also be provided. All information submitted will be treated as CONFIDENTIAL.

Upon receipt of a response, the Project Partner Sourcing Team will acknowledge receipt within 48 hours. If confirmation is received after this time, applicants can email to confirm receipt.

Due Date

Applications will be reviewed as received on a rolling basis until the RFP is closed.

Selection Process

This selection process follows the internal procedures of Terra Global Capital. Additionally, Terra Global reserves the right to consider applications at its discretion.

After submitting the application, Terra Global will notify you that either 1) your application has passed the completeness and initial eligibility check or 2) it has yet to pass the screening within two weeks of submission.

If your proposal has passed the completeness and initial eligibility check, the following steps will be undertaken:

1. Terra Global will send questions on application.
2. Applicant will provide answers to the questions (as possible)
3. Terra Global completes its Screening Process.
4. Applications that pass the Screening Process will sign a Collaboration Agreement with Terra Global.
5. Applications that do not pass the Screening Process Application will be notified.

Terra Global may cancel the request and not grant or reject all responses received. Furthermore, Terra Global reserves the right to deal independently with any applicant.

Post-Selection Activities Supported

Within this process, Terra Global will lead, guiding the project applicant to complete the following Phases, indicating the applicant’s responsibilities, and specifying what information they will be required to advance in the process to secure Climate Finance.

Phase I – Carbon Eligibility Assessment

If selected under this RFP, the applicant will sign a Collaboration Agreement to work with Terra Global to develop a Carbon Eligibility Assessment. During this Phase I, additional information is provided from the applicant. Terra Global and the applicant will engage in developing the Carbon Eligibility Assessment. Terra Global will also train key stakeholder groups about the opportunities for Climate Finance from Terra Global. 

The Carbon Eligibility Assessment developed by Terra Global with input from the applicant is designed to provide the business case for financing the project or program with Climate Finance. During this phase, each Party is expected to cover the costs of developing the Carbon Eligibility Assessment. In the Investment Readiness Phase, Terra Global may provide technical assistance funding to support the project/program in building the investment readiness requirements if selected to move forward.

Applicants selected under this RFP will:

Review the type of finance that Terra Global can provide and confirm interest in applying for a Climate Finance investment from Terra Global.

Work with Terra Global to support the Carbon Eligibility Assessment for Climate Finance. Please provide the required documents and data on the project, Communities, and their conditions.

Respond to questions and provide supporting documents to Terra Global such that Terra Global can determine whether the project or program meets Terra Global’s Eligibility requirements (Phase I) and can move into Phase II Investment Readiness of Terra Global’s project review process.

Next Steps After Carbon Eligibility Assessment

Once the Project has successfully completed Phase I, Terra Global may provide a Climate Finance Investment Letter of Intent at its sole discretion. The applicant will review and provide feedback on the Investment Letter of Intent to be signed to move into the subsequent phases of securing Climate Finance. Terra Global and the project/program team will work collaboratively to meet the Investment Readiness Requirements. If the process continues, the applicant will work with Terra Global to develop the initial Public Project Listing with the international carbon standard (such as Verified Carbon Standard) and authorize Terra Global to list the Project with the applicant and Terra Global as the multiple project proponents.