Honduras is bordered by Guatemala, El Salvador, Nicaragua, the Caribbean Sea, and the Pacific Ocean at the Gulf of Fonseca. It is vulnerable to mild earthquakes, damaging hurricanes, and floods along the Caribbean coast, as well as droughts and landslides. Its vulnerability is exacerbated by the fact it has a high rural population of more than 50 percent, of which 65 percent live in poverty and are dependent on rainfed agriculture as their principal livelihood.
INVESTING IN HONDURAS
CIF’s investments in Honduras are through its Scaling up Renewable Energy Program (SREP), Pilot Program for Climate Resilience (PPCR), and Forest Investment Program (FIP). Honduras' $45 million diverse programmatic SREP investment plan is aimed at creating an enabling environment for the country’s renewable energy sector.
Activities include upgrading the transmission infrastructure for grid-connected renewable energy, introducing wind and solar power in isolated, off-grid locations, and promoting the uptake of low-carbon cookstoves. The plan also includes support for policy and regulatory reforms to improve renewable energy market conditions.
Honduras' FIP and PPCR investment plans aim to support sustainable natural resource management and mainstream climate change considerations across sectors and stakeholder groups, respectively. The SPCR is focused on promoting resilient water resources management and governance, implementing climate-smart agricultural practices, and improving access and capacity to use climate data and services.
Through the CIF-TAF, about $ 750,000 was programmed for technical assistance activities in 2021. The programs covered an array of activites to support investment mobilization for green and resilient recovery of MSMEs in the aftermath of Covid-19.
