Adoption of climate technologies applicable to Micro, Small and Medium Enterprises (MSMEs) in the floriculture sector in Ecuador.

The United Nations Office at Nairobi (UNON), on behalf of Climate Technology Centre and Network (CTCN), United Nations Environment Programme (UNEP) invites qualified interested firms to submit Expression of Interest (EOI) to participate in the upcoming solicitation for provision of technical assistance implementation on "Adoption of climate technologies applicable to Micro, Small and Medium Enterprises (MSMEs) in the floriculture sector in Ecuador. More reference documents, Request and Response Plan, please visit: https://www.ctc-n.org/technical-assistance/projects/adoption-climate-technologies-applicable-msmes-floriculture-sector". The United Nations Environment Programme (UNEP) on behalf of the Climate Technology Centre and Network (CTCN) requires the services of an institution to deliver the technical assistance as approved by National Designated Entity from Ecuador. The purpose of this request is to implement technical assistance for the evaluation and prioritization of climate technologies applicable to the floriculture sector in small and medium-sized enterprises in Ecuador. Technologies adapted to the new climatic conditions to increase resilience to the impacts caused by climate change, promoting the sustainability of small and medium-sized floriculture enterprises in Ecuador. Despite being a competitive country, low profitability is a common problem for MSMEs in Ecuador's floriculture sector. This involves a number of factors, including intense competition, limited access to finance and high operating costs. The sector is internally very competitive and price sensitive, and this makes it difficult for small companies to compete with larger companies on sales price alone. Many companies have also faced challenges in obtaining financing to invest in new technologies, improve efficiency, and expand their operations. High operating costs such as labor, energy and transportation can also make it difficult for MSMEs to achieve profitability. In addition, many lack the resources and expertise to develop new products and access new markets, limiting their ability to grow and increase profits. It is imperative to address this situation by evaluating climate technologies applicable to the sector. These technologies should favor the production of small and medium producers, increasing their resilience to the negative impacts of climate change. Water scarcity compromises the availability of essential water resources for the crop, affecting both the quality and quantity of flower production. Micro, Small and Medium-Sized Enterprises (MSMEs) in Ecuador's floriculture sector are currently affected by both climate variability and the impacts caused by the COVID-19 pandemic. Reduced demand for flowers and the difficulty of exporting due to travel restrictions have led to a drop in sales and income. However, many MSMEs in the sector have adapted to these changes by focusing on domestic sales and e-commerce, which has helped mitigate the impact of the pandemic on their businesses. In addition, the fact that flowers are considered a good of high local demand has allowed many MSMEs to maintain their production levels. After the pandemic, from 2021 onwards, an economic recovery could be detected, which made it possible for non-oil and mining exports to show an increase of 14.2% compared to 2020 (EXPOFLORES, 2022). In Ecuador, technological development has focused mainly on the service sector, leaving primary production sectors, such as floriculture, behind. Keeping abreast of the latest technologies in cultivation, post-harvest handling and other aspects of floriculture is crucial for competitiveness. MSMEs may find it difficult to adopt and integrate modern technologies due to cost constraints. Climate variability and extreme weather events add a major threat to floriculture in Ecuador. In this context, it is crucial to identify technologies that enable the efficient use and reuse of water resources. Water scarcity in the agricultural sector, particularly in floriculture, underscores the importance of adopting technological practices that optimize the use of this vital resource. This technical assistance will provide detailed information on the most appropriate and efficient technologies for floriculture in Ecuador, thereby addressing current constraints and encouraging the adoption of more sustainable practices in the sector. The proposal aims to precisely address the needs and aspirations of the floriculture sector in Ecuador in relation to optimizing the implementation of technologies in MSMEs engaged in floriculture. The main objective is to evaluate and prioritize climate technologies applicable to the floriculture sector in MSMEs in Ecuador, which is vital to increase the resilience of the sector and at the same time achieve a reduction of GHG emissions in the production process, ensuring the sustainability of MSMEs.Other specific objectives of the technical assistance (TA) are: - The quantification of initial investment required and possible sources of external and internal financing, and - to strengthen technical capacities for the prioritized new technologies, including gender mainstreaming. Some of the expected outputs are: a. Development of implementation planning and communication documents b. Stakeholder mapping and creation of a working group specialized in the floriculture sector c. Prioritization of relevant technologies and solutions to increase access to financing d. Capacity building in climate technologies applicable to the floriculture sector e. Business model to enhance the valuechain for the implementation of the prioritized and validated technologies The complete details of the requirement will be provided in the tender documents that will be issued to bidders after this request for EOI is closed.