International bodies such as the World Economic Forum, the WWF and the UNEP Financial Initiative have introduced the concept of natural risk in recent years. The Task Force for Nature Related Financial Disclosure (TNFD) draws up reporting requirements for natural risks. Finance Norway has taken the initiative for a national partnership to evaluate “the loss of nature as a financial risk”. The inspiration for the move was the concept of climate risk introduced by the Bank of England in 2015, which has since made inroads into climate policy and corporate planning. Climate risk describes a company, sector or country’s vulnerability to extreme situations in the form of major changes to the climate, climate policy and the energy market. Natural risk is a similar way of approaching nature and biodiversity but is not yet as established and widely known as climate risk. Global warming and the loss of biodiversity are both major global threats to welfare, albeit in different ways. If the concept of natural risk is to prove useful, it must be tailored to suit and not just be copied from the climate field.
The purpose of the project
The aim of the project will be to map the use of the concept of natural risk, describe what it entails and its possible uses and evaluate its usefulness to the Nordic countries’ environmental policies. It must include a description of the current status: What literature has been published about the concept of natural risk, including tangible initiatives to refine it or deploy it in practice? This overview should describe all literature and initiatives in the Nordic countries as well as everything elsewhere that is relevant to the Nordic Region.
The project must then examine the content of the concept, as described in the material mentioned above.
- Is the term unambiguous, or is it used in different ways?
- Are other terms used that are de facto natural risk or closely related to the concept as described here?
- Have analyses of natural risk been conducted, or is it still at the theoretical stage?
On the basis of this and the researcher’s own assessments, the project must include a proposal for conceptual understanding and an illustration of its use, e.g. examples from companies, industries and/or countries. The researcher must also evaluate whether and, if possible how, the concept of natural risk can be a useful addition to environmental policy.
The budget framework for the project is DKK 400,000 (incl. VAT).This includes standard project expenses as well as travel and communications.
Applications must be submitted to the NME and NBM no later than 10 June 2021. All documents must be submitted by this deadline. Material received after this date will not be taken into consideration. A decision will be made in June, and all applicants will be informed of it. Dates for final reports will be set in the project contract.
Applications must be e-mailed to the NME administrative body (email@example.com). The project description/application form and compulsory budget form must all be in one of the Nordic languages. Applications must cite the registration number EPOELY/817/2021.
Feel free to submit additional appendices (max. 10–15 x A4 pages) describing in greater detail the factors that the working groups should consider in our evaluation, e.g. a separate project description. Send any CVs jointly in a single separate file.
When assessing applications, the emphasis will be on:
- the structure and planning of the work, including methodology and how relevant data will be collected and processed
- the timetable
- the allocation of responsibilities and time, general competencies and qualifications of those managing and involved in the project
- the applicant’s previous experience in the area
- the Nordic contacts and networks that will be used in the project and fluency in the Nordic languages
- the expenditure for the proposed project period, including hourly rates and other expenses
- the communications plan for the project.
Further information about funding from the Nordic Council of Ministers is available here:
NME and NBM will assess the applications and choose the successful one. The working group reserves the right to reject all applications.
See appendix: “Anbudsinbjudan_Naturrisiko_NME_NBM_LONG.docx” for further details about project content and financing requirements.