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Agricultural Emission Pricing Scheme – Indicative Business Case

Details

Tender Closed
RFx ID : 25046874
Tender Name : Agricultural Emission Pricing Scheme – Indicative Business Case
Reference # : C0033103 Restricted Tender
Open Date : Wednesday, 3 November 2021 5:30 PM (Pacific/Auckland UTC+13:00)
Close Date  : Monday, 15 November 2021 5:30 PM (Pacific/Auckland UTC+13:00)
Department/Business Unit : Agriculture and Investment Services
Tender Type : Request for Proposals (RFP)
Tender Coverage : Sole Agency  [?]
Categories :
  • 84000000 - Financial and Insurance Services
  • 93000000 - Politics and Civic Affairs Services
Regions:
  • New Zealand
Exemption Reason : None
Required Pre-qualifications : None
Contact : Tom van Ryn
thomas.vanryn@mpi.govt.nz
Alternate Physical Delivery Address  :
Alternate Physical Fax Number  :
Agency Address : NEW ZEALAND
Overview

BACKGROUND

In October 2019, the Government agreed to partner with industry, and Māori under He Waka Eke Noa, to develop a farm-level pricing system, or an agreed alternative system, to encourage farmers to reduce their agricultural emissions as an alternative to agriculture entering the Emissions Trading Scheme.

MPI has agreed to temporarily set up an Establishment Unit until decisions are made by Cabinet about the lead implementation agency in 2022. The Establishment Unit will scope the implementation functions for farm-level pricing, or an agreed alternative system, as well as develop a business case to support implementation.

To support the implementation of farm-level pricing, or an agreed alternative system, developed by He Waka Eke Noa, MPI is seeking a partner to lead the development of a large scale, indicative business case within the Treasury Framework within tight timeframes. The IBC is intended to set out the investments in capability required by the lead agency to administer and regulate the alternative agricultural emissions pricing mechanism.


WHAT WE NEED

The Establishment Unit requires external consultancy expertise to lead the development and finalisation of an Indicative Business Case (IBC) consistent with Treasury’s Better Business Case guidelines.

The IBC will need to effectively evaluate the implementation options being considered by the He Waka Eke Noa Programme. Amongst other things, this analysis will require the evaluation of capabilities required to register farmer participants in the scheme; administration arrangements, design of emissions reporting systems including the IT system, development verification and compliance processes; assessment of levels of staffing, arranging data sharing and interoperability, and design of the payment scheme, including methods and frequency.

The business case development work will need to run in parallel and be responsive to the policy development being led by the He Waka Eke Noa Programme.

The business case will need to be delivered by the end of January 2022 to secure budget to progress the development of capabilities required to operationalise an agricultural emissions pricing mechanism.

The IBC precedes the development of a more detailed business case as a two-stage process typical for such complex investments in the establishment of regulatory capabilities.

RFx Outcome

This tender has been awarded. Total spend value $ 500,000.

  • Deloitte - 20, Customhouse Quay, Wellington, 6011, NEW ZEALAND

Award Date: Friday, 28 January 2022 (Pacific/Auckland UTC+13:00)
Date RFx was completed/updated: Thursday, 3 February 2022 9:13 AM (Pacific/Auckland UTC+13:00)