CABEI signs agreement to increase the region's resilience to climate change

South Korea, June 21, 2019.- The Central American Bank for Economic Integration (CABEI) and the Green Climate Fund (GCF) signed a framework agreement for the "Initiative for Productive Investments Adapting to Climate Change (CAMBio II).”

The program will have a duration of five years and availability of up to US$28.0 million; this includes a financial contribution from the GCF for up to US$15.5 million, of which US$12.5 million will be reimbursable and US$3.0 million non-reimbursable, as well as a CABEI reimbursable financial contribution for up to US$12.5 million.

CABEI Executive President, Dr. Dante Mossi commented that, "We are very honored to have formalized the first agreement with the Green Climate Fund which enables  us to channel financial resources for the financing of climate change adaptation measures of the region's Micro, Small and Medium Enterprises (MSMEs). We are very happy with this association and  hope that it will be the first of many initiatives to be jointly carried out together in the Central American region." He added that the entity aims to continue promoting this type of investment in the region and supporting its member countries in compliance with the Paris Agreement and the Sustainable Development Goals.

About the Initiative
The operation, which was approved by the GCF last October and by the CABEI Board of Directors in February, represents an important milestone by being the first GCF financing made through CABEI subsequent to its accreditation in December 2016.

The Initiative aims to increase the resilience to climate change of 5,000 MSMEs in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama and the Dominican Republic through access to financial and non-financial resources in order to adopt and apply the best climate change adaptation measures. In total, the Initiative will lead to improved climate change resilience, benefitting 69,720 people.

CAMBIO II will achieve its objectives through the establishment of an innovative financial mechanism for adaptation measures based on ecosystems; the creation of capacities for the development of production models resistant to climate change; and the design and execution of an incentive scheme to promote adaptation measures implemented by MSMEs (Bio Award).

CABEI is a benchmark with regard to climate financing
The search for environmental sustainability and the reduction of vulnerability to natural disasters associated with climate change are fundamental for guaranteeing the effectivity of efforts made in social development, competitiveness and regional integration.

A new step, which is an addition to the measures to meet the sustainability objectives, was the recent Carbon Zero Declaration issued by CABEI to identify initiatives related to promoting climate change mitigation and prevention and supporting the strengthening of low carbon economies, societies resilient to climate change, sustainable food production, clean energy generation and energy efficiency.