In alliance with CABEI, European Union consolidates financial contribution to promote regional climate investments
In 2021 CABEI and the EU signed a non-reimbursable agreement for EUR4.9 million for the preparation of climate change projects for the benefit of the Central American region.
Tegucigalpa, April 8th, 2022.- To promote the sustainable recovery of the Central American region and to learn about current and future prospects under this climate alliance, the Central American Bank for Economic Integration (CABEI) and the European Union (EU) held the event: "European Union Contribution to the Climate Change Investment Project Preparation Fund (FCC)".
During the activity, the CABEI Climate Change Investment Project Preparation Fund was presented as CABEI's response to the effects of climate change and to which EU climate funds have been directed. The mechanisms for accessing these funds, the current project pipeline and the important climate alliance between the two organizations were also presented.
The European Union's contribution is EUR 4.9 million and will promote the development of technical assistance for the preparation of initiatives that contribute to the management of natural disasters and adaptation to climate change. This non-refundable contribution agreement was signed between both institutions in December 2021.
This contribution brings the availability of resources in the Fund to $17.5 million, with additional contributions from European partners. The Spanish cooperation agency AECID is providing $1.9 million through FONPRODE. Likewise, the German Federal Ministry for Economic Cooperation and Development (BMZ) is currently in the process of final negotiations for a contribution of up to US$5.0 million through the KfW.
"As the Green Bank of the Region, we continue to reaffirm our commitment to promoting investments that seek the conservation and sustainable use of natural resources, and we are certain that this alliance strengthens the ties of cooperation between Europe and our region in the face of the climate emergency we are facing," said CABEI Executive President, Dr. Dante Mossi.
It is expected that as a result of the technical assistance to be provided, a portfolio of initiatives will be created for the benefit of the Bank's partner countries, and projects with a strong climate focus will be identified that can be co-financed with important European allies and financing sources such as the EIB, ICO, the Green Climate Fund and the European Union, among others.
The FCC was created within the framework of the “Central American Resilient Reconstruction Program” to provide resources to finance projects that address and prevent natural disasters in order to adapt to the effects of climate change and implement short, medium and long-term measures.