CABEI develops aid programs for the population impacted by the effects of climate change in Central America


Over the past seven years, the Bank has invested US$6.9 billion in mitigation and adaptation operations, representing 41% of total approvals.

Tegucigalpa, November 19, 2021.- Vulnerability to climate change in Central America was again evident in 2020 after the Eta and Iota weather events, which caused losses and damages of approximately US$3,663.5 million, with the greatest impact on Honduras, Guatemala and Nicaragua, three of the most vulnerable countries in the world according to the German Watch Climate Risk Index (CRI).

That same year, the Central American Bank for Economic Integration (CABEI) responded to the emergency with non-reimbursable financial cooperation of up to US$3.5 million to assist the population affected by the hurricanes in Central America, Belize, Panama, and Colombia. In 2021, it supported those affected by tropical storm Laura in the Dominican Republic with US$500,000 and the Republic of Haiti with US$1.0 million to assist earthquake victims.

Some of the initiatives have been carried out jointly with strategic allies such as the Green Climate Fund (GFC), among them: the Central American Dry Corridor and Arid Zones Project in the Dominican Republic, which aims to benefit close to 3.8 million people, strengthening their adaptive capacity, including small farmers and commercial farmers, as well as entrepreneurs in rural communities.

Also, the CAMBio II Program, which plans to benefit 69,720 people by increasing the resilience of MSMEs to climate change, eliminating barriers to access financial and non-financial resources; as well as the Costa Rica Electric Passenger Train, which will impact nearly 1.5 million inhabitants of the Greater Metropolitan Area.

In addition, the Bio-CLIMA Project aims to promote forest conservation and restoration in the Bosawás nature reserve and in the biosphere of the San Juan River in Nicaragua, reducing CO2 emissions by 47.3 million tons and making 665,821 people more resilient to climate change.

Impacts of the region's Green Bank                                                                          

CABEI was also able to develop the Central American Resilient Reconstruction Program, which was approved as an immediate response to the damage caused and is intended to provide resources to the countries to finance projects to address and prevent natural disasters. It consists of six components: emergency aid, technical assistance and preparation of investment projects, public and private investment programs, green, ESG and thematic bonds, and knowledge development.

In Honduras, 29,500 vulnerable families affected by the meteorological phenomena will benefit from the Resilient Housing Reconstruction Program, with an investment of US$50 million for the acquisition, reconstruction, or rehabilitation of housing. It will also finance 26 subprojects that include mitigation works, reconstruction of neighborhoods, basic services, and improvement of shelters in four departments in the north and west of the country. In addition, more than 165,000 people will receive a voucher for basic needs.

Other initiatives are also being developed in Honduras, related to feasibility studies for the execution of the National Land Dams Program and the technical and economic pre-feasibility study for infrastructure in the lower basin of the Choluteca River. All of these projects for the benefit of Central Americans will contribute to climate change adaptation and, consequently, to greater social inclusion and quality of life, which is in line with CABEI's 2020-2024 Institutional Strategy and the 2030 Sustainable Development Goals (SDGs).