Green Climate Fund Approves Technical Assistance to CABEI for Climate Change Institutional Strengthening

Tegucigalpa, November 25, 2020-The Green Climate Fund (GCF) approved the financing proposal presented by the Central American Bank for Economic Integration (CABEI) for a non-reimbursable financial cooperation through the Readiness window for a total amount of US$750,000.

The purpose of this technical cooperation is to strengthen the capacity of Nicaragua's key institutions to implement the country's policy and work program with the GCF and to guide investments towards a low-emission economy and a climate-resilient society. On the other hand, the Ministry of Finance and Public Credit (MHCP), in its role as Designated National Authority (DNA) before the GCF, and the Ministry of Environment and Natural Resources (MARENA), in the process of accreditation as a National Direct Access Entity, will be the main beneficiaries of this technical assistance.

Due to its geographical position, like other Central American countries, Nicaragua is exposed to various events linked to natural climate variability, such as the ENSO phenomenon (El Niño-La Niña), the Pacific monsoon systems and hurricanes, among others, which generate significant threats of drought, flooding, landslides, water shortages and loss of crops, forests and housing. All these phenomena are the result of climate change, which is manifested in Nicaragua with a warmer climate and a deficit in rainfall. Likewise, due to economic, social, cultural and environmental factors, the country is highly vulnerable to the threats generated by climate variability and change, which implies important losses and damage to human and economic life every year, a situation that became evident this year with the passage of hurricanes Eta and Iota.

CABEI's Executive President, Dr. Dante Mossi said that: "Through this cooperation, CABEI responds to the needs of a country highly affected by the recent phenomena of hurricanes Eta and Iota. In that sense, he mentioned that CABEI reaffirms its commitment with the countries affected by these phenomena, through the Central American Program for Resilient Reconstruction.

CABEI is an Accredited Direct Access Entity since 2016 to the Green Climate Fund (GCCF), and maintains a fruitful relationship, since the accreditation, which was granted without conditions and that enables CABEI to mobilize resources in all the categories and windows available of the GCF. An important fact is that this technical cooperation is the fourth operation approved by the CABEI since its accreditation.