Terms of reference: Feasibility assessment for supply shed approach in coffee supply chain in Huila, Colombia

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Discover how the coffee industry is taking bold steps towards sustainability with a ground-breaking feasibility study led by IDH and Solidaridad in Huila, Colombia. This initiative explores the potential of a supply shed approach to decarbonise coffee production while promoting biodiversity, water conservation, and social well-being. By mapping current efforts, evaluating carbon reduction impacts, and engaging key stakeholders, the study aims to create a replicable model for collaborative corporate investment. This innovative approach could transform how coffee is produced, ensuring a sustainable future for farmers, ecosystems, and the entire supply chain.

Introduction

Thanks to a partnership between Solidaridad, Conservation International, and IDH, we are launching this Terms of Reference (ToR) to advance the development of a decarbonisation supply shed approach in the coffee supply chain in Huila, Colombia.

IDH and Solidaridad are seeking a dedicated service provider with proven experience in technical expertise on carbon market methodologies, corporate climate & nature strategic frameworks, quickly evolving GHG Protocol requirements, as well as a good understanding of the coffee supply chain or other tropical commodities, and In-depth knowledge of the local context in Huila, Colombia, including socio-economic, environmental, and agricultural aspects.

The coffee sector's ambitious decarbonisation commitments necessitate significant investment to meet Science Based Targets and address broader challenges such as water, biodiversity, livelihoods, and climate resilience. In Huila, Colombia, a supply shed approach, and infrastructure could unlock investment and collaboration among coffee sector actors to scale high-integrity GHG reductions and removals. This platform could create synergies across methodologies and establish the systems and safeguards required to scale investment in GHG reductions and removals across the sourcing region, including a shared registry.  

  • Problem

Major coffee companies have set ambitious climate targets but face challenges in scaling decarbonization investments due to supply chain complexities, data collection, traceability, attribution, and uncertain carbon accounting rules. Local stakeholders often prioritize livelihoods, resilience, biodiversity, and water, but frameworks to address these issues are immature and require landscape-scale investments, which are difficult to count towards corporate targets.  

  • Proposed Solution

The proposed solution aims to develop and pilot a replicable approach to unlock scaled, collaborative corporate investments in a key sourcing region to meet climate, nature, and social goals. This model would create the GHG accounting infrastructure (a supply shed approach) to mitigate double counting and free rider risks, while coordinating social and nature approaches across project implementors to ensure scaled investment delivers on both corporate and landscape objectives. This governance structure would organize the sector to invest collectively to decarbonize and regenerate coffee lands in Huila, Colombia.  Learnings will be used to document the model and make it replicable for other geographies and sectors.  

Assignment

Objectives 

Assess the feasibility of a decarbonization supply shed approach in the coffee supply chain in Huila, Colombia. This assessment will map the full scope of ongoing and planned activities in the landscape (both on-farm and off-farm) across key areas, including carbon, biodiversity, water, and social impact areas. Understand stakeholder priorities and the potential for carbon impacts if efforts are expanded. It will make an inventory of the participating coffee supply chains and its producer base. The analysis will document the existing scope 3 reduction efforts of coffee supply chain partners active in Huila. 

Note: We expect this work will require understanding of both local context (e.g. landscape, stakeholders, supply chain dynamics) and global context (e.g. global GHG accounting and target setting standards, carbon methodologies). These separate but related competencies may be delivered by two separate partnering consultants or by one consultancy which has expertise in both. For clarity, we’ve tagged where local vs global understanding is key for each activity below (in parenthesis next to each activity name or sub-activity when both are required within a single activity). 

Proposal Requirements and Deadline for Application

Read IDH's General Terms and Conditions

Deadline for Submitting Questions: April 3rd, 2025 

Proposal Submission Deadline: April 13th, 2025

Apply with: Technical & financial proposals (in English) to cano@idhtrade.org.

Terms of Reference and Annexes

Terms of Reference 

Annex 5: Budget Template