Green Recovery Program in Honduras
German Financial Cooperation, through KfW, and the Central American Bank for Economic Integration (CABEI) signed a Green Recovery Program in Central America. The ambitious project aims to promote the development of economic activities with a focus on environmental sustainability. Only those projects with a view to mitigation, adaptation and capable of having a positive impact on climate change will be qualified to access the EUR 250.00 million funds allocated to the program. The project aims to attract a large number of companies interested in developing renewable energy and energy efficiency infrastructure, electric mobility, as well as resilient and low-carbon public infrastructure.
Economic reactivation in Honduras is highly focused on encouraging investments with positive impacts on the environment. It is possible to observe a strong and unified effort to reactivate the economy in a sustainable manner and support sectors of great relevance such as micro, small, and medium enterprises affected in the last two years. Sustainable economic recovery is particularly important, given that the fight against climate change has recently taken a back seat. This loan is intended to contribute to economic recovery by creating new jobs and supporting the transition to a low-carbon economy.
Among the main projects of interest to the Green Recovery Program are infrastructure that improves climate resilience, sustainable mobility or renewable energy; loans to protect homes affected or at risk from climate change, purchase renewable energy generation equipment, as well as low-emission means of transportation. The initiative also includes non-reimbursable resources of EUR 4.5 million to strengthen the preparation of climate change mitigation and adaptation projects and will begin with the direct implementation of this knowledge and tools at CABEI itself.
The Green Recovery Program has permeated multiple government agendas, which can be seen among the main elements of the bids for 2023. Industries such as Tourism, Transportation, Energy and Infrastructure will be the main beneficiaries of this, and other projects also being developed by the German Government and CABEI. The generation of renewable energy sources, job creation, new development opportunities and encouraging care for the environment will be the main focuses for accessing the funds. It is important to keep in mind that, along with these projects, the European Union has implemented legislative packages to achieve climate neutrality. One of the priorities of these efforts is to support Honduras in achieving its climate action goals. In this regard, we will continue to create projects with initiatives to combat climate change, including the transition to clean energy.
Graciela Cruz
graciela.cruz@garciabodan.com
Partner
García & Bodán
Honduras