Stichting IDH (“IDH”) is looking for a Consultant to help design, structure, and fund-raise for a Latin American Climate Resilient Coffee Facility, starting from the assessment of farmer needs for climate proofing their farms.
Companies across the coffee supply chain have made public commitments to embark on a journey to become resource-positive, yet this transition is fraught with many challenges both on the demand and supply side.
IDH Invest unit of IDH proposes to address this gap by designing, structuring and co-financing the Latin America Coffee Resilience Facility (LATTE) to advance climate-smart financing for smallholders while supporting the climate agendas of the coffee sector players.
LATTE’s objective is to align farmer financing with the climate commitments of the coffee sector players, placing an emphasis on carbon, water and biodiversity. The facility is being designed as a “white label” credit product, provided by a flexible Financial Services Provider, that can be adopted and taken up by any coffee trader/brand/intermediary.
The overall objective of this assignment is to design, structure and co-fundraise for LATTE, starting with the following deliverables:
A. Coffee Companies / Traders
- Identify and select 3-5 most relevant private players in the coffee sector for partnership. The aim is to have a representative mix of Colombian and international companies, outline rationale and criteria.
- Outline companies’ climate and nature agendas, targets and approaches to meeting them.
- Identify and review current financial and technical support provided by selected companies to their farmers for climate-proofing their farms, with a focus on Colombia.
B. Farmers
- In collaboration with IDH, define climate resilience (adaptation + mitigation) and the implications it has for future coffee lending in the region. Provide an overview of climate resilience needs faced by smallholders of key partners for the facility (as per A).
- Review existing farmer financing and identify how LATTE can be additional in availing farmer finance for identified climate resilience needs.
- Assess farmers’ willingness, appetite and capacity to uptake financial products for climate resilience with a focus on Colombia.
- Map out farmer profile(s) and type of borrower(s) envisaged for the facility.
- Propose a package of financeable and measurable interventions/credit product(s) that support climate resilience for farmers.
- Identify farmer-level incentives as well as TA needs that could support the uptake of financial products aimed at bolstering climate resilience.
- Identify pathways to how financial services player(s) can plug the gaps and service farmers with climate-resilience financing.
The proposal must be submitted to Ari Nova Firnanda at firnanda@idhtrade.org and Evgenia Sokolova at sokolova@idhtrade.org before 21 October 2024 at COB.
Annex 1: reVive Investment Development Hub Colombia website
Annex 2: Potential follow-up assignment(s)
Annex 3: Budget template
Annex 4: Detail request form
Annex 5: Letter of Assignment