Call for Position paper on Carbon tax

Background

Carbon pricing is a climate policy approach developed to charge emitters for each ton of emissions of carbon dioxide (CO₂) they emit. A carbon tax is a fixed price set per ton of carbon or, more commonly, per ton of CO₂ emitted. 

As an EU accession country, North Macedonia has an obligation to transpose and implement EU acquis. Part of this is the ETS directive (Emissions Trading Scheme), but this has not yet been transposed into the national legislation. As a way to remedy this and to level the playing field in the energy sector on a regional level, the European Commission and the Energy Community proposed the introduction of a carbon border adjustment mechanism (CBAM).

The introduction of a national carbon tax and/or ETS can exclude the country from CBAM.

Electricity production in North Macedonia is largely coal based, with around 70 per cent of the electricity produced from coal in the BItola and Kichevo regions. The share of coal-based energy production remains high because of lack of investments in pollution control and the non-existence of carbon tax. This keeps operational costs to a minimum and the price of energy production from coal artificially low. At the same time, the country actively trades electricity with its neighbors, out of which two are EU Member States. 

Subject of the proposal

The position paper produced by the consultant needs to give a short overview on possible carbon tax mechanisms and to explore their compliance with existing national legislation and applicability in the country’s energy and industry sectors.

It should further provide recommendations on which policy option would be more efficient and less costly on the national level in general, by taking into account, among other things, compliance with existing EU regulations and how it will encourage individuals and businesses to reduce their carbon emissions.

Considering the introduction of a carbon tax can significantly speed up coal phase-out plans in the country and even sidetrack some planned projects, such as coal-fired district heating in Bitola and new coal mines, the paper also needs to give an overview on how the best policy option will impact existing coal regions in Bitola and Kichevo. In this sense, the study should examine the socioeconomic effects of carbon pricing, the options for revenue use, and the implications of each option.

The paper is expected to be approximately 20 to 30 pages long. The final version of the position paper should be written in Macedonian. However, if the consultant is not a native Macedonian speaker, the final version of the paper expected by the consultant should be in English. The consultant will be responsible for producing two drafts and a final version. Relevant staff from Eko-svest and/or Bankwatch will provide comments on the drafts. Eko-svest and Benkwatch will be responsible for the proofreading, translation, design and distribution of the publication. The study will be published, and the consultant must be willing to be mentioned publicly as author of the study. The consultant will be required to make at least one appearance at an event in order to promote the paper and its findings. 

Timeline

Budget

A maximum of EUR 3 000 (including tax) will be paid upon delivery of the final version of the analysis.

Eligibility

Experts with knowledge and experience in the field of energy policy, with special focus on climate legislation and carbon trading regulations, and with a background/university degree in law, or economics or similar. They should have extensive understanding of the carbon pricing policy options and of EU climate legislation, and at least 5 years of professional experience in these issues. 

How to apply

The offer should contain a CV highlighting the required qualifications and experience, together with a 1-page outline proposal for the paper. At least two references should be named who have agreed to support the application. Examples of previous similar position papers conducted by the expert are also welcome in support of the application and will be considered an advantage.

Selection

Candidates should submit their offers by 30 June to the following email address: davor@bankwatch.org with the subject ‘Application for writing a position paper on carbon tax policy options for North Macedonia’.

The selection criteria will include:

1) Previous experience in similar projects 

2) Quality of project proposal and alignment with requirements to consider only sustainable energy forms.

The entire documentation should be submitted in English, in electronic form. Only the short listed candidates will be contacted for interviews.