Carbon Budget 5 analysis macroeconomic modelling

DECC is looking for a contractor(s) to conduct modelling using HMRC’s environmental CGE model to help inform the decision making on Carbon Budget 5. The purpose is to estimate the macroeconomic and business competitiveness impacts of setting Carbon Budget 5.

In proposing a suitable methodology, the contractor must address the research questions and/or objectives outlined in the attached Invitation to Tender. The work specified here forms part of a wider work programme to assess the appropriate level at which to set Carbon Budget 5. Potential suppliers will be required to have the capacity to work with HMRC’s environmental CGE model within a limited timeframe.

The environmental extension of the HMRC CGE model is an important model previously used within government to analyse potential macroeconomic effects of energy and climate change policies. An earlier version of the model was previously used for this purpose for 4th Carbon Budget analysis. While the model is not the only way in which these impacts can be estimated, it is one useful source of evidence.

Carbon Budgets place restrictions on the total amount of greenhouse gases the UK can emit over a 5-year period. The government has set the first 4 carbon budgets in law, covering the period from 2008 to 2027. The fifth carbon budget covering 2028 to 2032 is scheduled to be set by June 2016.

A peer review of the environmental model, completed in October 2013 (and attached to this ITT), identified some ways in which the model could be improved. It was then updated in November 2014.

Interim results w/c 4th January 2016; Final Results, Outline of Draft Final Report and in person presentation of findings draft final report w/c 18th January 2016 and Final Report agreed by 12th February 2016.

Additional information: If you wish to take part in this procurement please see the Tender documents attached to this Notice for instructions. Tenders should be no more than 10 pages.

Please email your proposal by the deadline of 2pm, 9th December 2015 to [email protected]. Any late submissions will not be considered. Please also send 3 hard copies of your proposal and declarations by the tender deadline addressed to Shyamala Balendra, Area 6C, DECC, 3 Whitehall Place, London SW1A 2AW. Envelopes/packages should bear no reference to the tenderer by name and must be clearly marked as “Tender”.

If successful, the supplier is expected to attend an inception meeting taking place in week commencing 14th December 2015.

DECC reserves the right to halt the procurement process and to not award a contract. DECC will not be held liable for recovery of costs from unsuccessful bids if a contract is not awarded. All costs will be borne by the bidding organisations. If a contract is created it will be upon DECC Standard Terms and Conditions, which are available on contracts finder.