This strategy responds to one of the main needs identified by the country and the programme through the Country Dialogue process.

Tegucigalpa, October 16, 2020. In December 2018, and within the framework of the COP24 in Katowice, the Government of Honduras presented a request for technical support to the EUROCLIMA+ Programme which included "the improvement of climate governance (...) including a Climate Financial Inclusion Programme".

Within the framework of the Country Dialogue process, and the consequent identification of actions to address this need, EUROCLIMA+ through the German Society for International Cooperation (GIZ)  and the International and Ibero-American Foundation for Administration and Public Policy (FIIAPP) as implementing agencies, has actively supported and accompanied the Government of Honduras in structuring its Financial Inclusion Strategy for Climate (FIC), in close collaboration with the Presidential Office for Climate Change (Clima+) and the European Union Delegation (DUE) in Tegucigalpa.

The accompaniment has also addressed the national goal of restoring 1 million hectares of forest by 2030 (an explicit commitment in the country's NDC), which has provided a sectoral framework for the initiative.

"For the EUROCLIMA+ Programme, the joint work and institutional coordination with the partner countries and the various actors in local climate action is very relevant. In the case of Honduras, we are grateful for the leadership of our National Focal Point and the Presidential Office for Climate Change (Clima+). We are convinced that providing accessible and inclusive financial instruments to producers is fundamental for the country to advance its climate commitments in order to comply with the Paris Agreement," said Horst Pilger, Head of Sector in the European Commission's Directorate General for International Cooperation and Development.

Thus, the technical support offered by EUROCLIMA+ has consisted in the organisation, facilitation, and systematisation of dialogue tables for the articulation of the IFC with different actors from public and private institutions, international cooperation, and academia. A total of 2 face-to-face dialogue sessions and 6 virtual dialogue sessions were held with the productive sectors of coffee, livestock, palm, cocoa, and forestry. These sessions were attended by a total of 340 people.

Complementarily, technical diagnostic studies were carried out that allowed the formulation of a roadmap for the operationalisation and implementation of the FIC and the "Million Hectares Goal".

Regarding the subject of the FIC, the analysis allowed for the conceptualisation of the initiative, based on existing background, the governance of the country and taking into account the national reality as well as international best practices. The state of the art of climate finance instruments currently being offered in the Honduran financial system was analysed, and the main barriers to accessing these products were identified, as well as the potential for converting existing schemes into responsible banking principles.

Gabriela Jiménez Nehring, coordinator of the project "Resilient Coffee Landscapes" of the Honduran Coffee Institute (IHCAFÉ) indicated that "for the coffee sector a financial climate inclusion strategy is the only mechanism for implementing of climate change mitigation and adaptation practices with a social justice approach. 87% of producers are small and do not have access to fair financing to implement their practices, taking into account that the sector has a high potential to contribute to the goal of restoration".

Regarding the "Million Hectares Goal", the study consisted of a diagnosis on the enabling framework needed to implement the actions to achieve the goal, which included an analysis of the rules, regulations, institutional governance framework, coherence of sectoral public policies, considering also the role of the FIC; in the estimation of the climate potential of the different productive sectors; an identification of gaps and barriers to the implementation of the target and a detailed analysis of the needs for monitoring, reporting and verification in order to adequately follow up on the target and have better opportunities to access climate finance, including carbon markets.

With the results of this process, the EUROCLIMA+ Programme reiterates its commitment to implement strategic and transformational actions aligned with the climate agendas in its partner countries, thus supporting the implementation and updating of the NDCs. The structuring of the FIC through a multi-stakeholder and multi-sector process will allow the Government of Honduras to continue making progress on the implementation of its international commitments.

About the EUROCLIMA+ Programme

EUROCLIMA+ is a programme financed by the European Union to promote environmentally sustainable and climate-resilient development in 18 Latin American countries, particularly for the benefit of the most vulnerable populations. The Programme is implemented under the synergistic work of seven agencies: the Spanish Agency for International Development Cooperation (AECID), the French Development Agency (AFD), the Economic Commission for Latin America and the Caribbean (ECLAC), the German Society for International Cooperation (GIZ) GmbH, Expertise France (EF), the International and Ibero-American Foundation for Administration and Public Policy (FIIAPP), and UN Environment.

Contacts:

• Pablo Rojas. Regional Advisor on Climate Governance and the Private Sector – EUROCLIMA+ Programme / GIZ. This email address is being protected from spambots. You need JavaScript enabled to view it.
• Sara Covaleda. Project Technician – EUROCLIMA+ Programme/ FIIAPP. This email address is being protected from spambots. You need JavaScript enabled to view it.