Productive Investment Initiative for Adaptation to Climate Change (CAMBio II)

The CAMBio II programme, implemented by the Central American Bank for Economic Integration (CABEI), focuses on enhancing the climate resilience of agricultural MSMEs in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic. The initiative employs a three-pronged approach: providing innovative financial mechanisms through intermediary financial institutions (IFIs), offering capacity building and technical assistance, and implementing an incentive scheme called 'Adapt-Award' to promote ecosystem-based adaptation. The programme leverages a Global Credit Line (GCL) to distribute loans for sustainable resource management. A previous iteration of the project (CAMBio) demonstrated that while financial intermediation is successful, reaching the most vulnerable small-scale farmers remains a challenge due to conservative banking practices and high perceived risks in rural areas.

• The programme's primary goal is to increase the climate resilience of MSMEs in Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Panama, and the Dominican Republic by removing financial barriers to adaptation services.
• The initiative is structured around three main components: innovative financial mechanisms for ecosystem-based adaptation, capacity building for resilient production models, and the 'Adapt-Award' incentive scheme.
• The 'Adapt-Award' provides a 20% cash refund on the loan principal granted by IFIs, capped at USD 10,000, distributed between the MSMEs and the IFIs.
• The programme targets at least 5,000 MSMEs to receive credit for adaptation measures and aims for at least 10 IFIs to operate credit lines for these investments.
• The total cost of the programme is US$ 29.87 million, with US$ 24.8 million requested from the Green Climate Fund, consisting of US$ 20 million in loans and US$ 4.87 million in grants.
• Central American agriculture is highly vulnerable to climate change, with projections suggesting grain yield decreases of up to 35% for maize, 43% for beans, and 50% for rice by the end of the century.
• The region faces significant biodiversity loss, with the potential biodiversity index (PBI) projected to reduce by 13% due to land use changes, and between 33% and 58% when climate change is included.
• Financial inclusion for the agricultural sector is low, with credit to agriculture accounting for roughly 3% of total regulated financial system credit in Costa Rica, El Salvador, Honduras, Panama, and the Dominican Republic.
• The previous CAMBio project disbursed over USD 56.0 million through 22 IFIs, but the final evaluation noted that the project failed to significantly change banking policies or expand financial inclusion for the most vulnerable.
• The final evaluation of the first CAMBio project revealed a concentration of funds, where 52 clients in the coffee sector received 52% of the total loan funds.

APA

Green Climate Fund (2017). Productive Investment Initiative for Adaptation to Climate Change (CAMBio II). https://www.greenclimate.fund/sites/default/files/document/17240-productive-investment-initiative-adaptation-climate-change-cambio-ii.pdf

Chicago

Green Climate Fund. Productive Investment Initiative for Adaptation to Climate Change (CAMBio II). 2017. https://www.greenclimate.fund/sites/default/files/document/17240-productive-investment-initiative-adaptation-climate-change-cambio-ii.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Productive Investment Initiative for Adaptation to Climate Change (CAMBio II) |date=22 June 2017 |url=https://www.greenclimate.fund/sites/default/files/document/17240-productive-investment-initiative-adaptation-climate-change-cambio-ii.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2017productive, author = {{Green Climate Fund}}, title = {{Productive Investment Initiative for Adaptation to Climate Change (CAMBio II)}}, institution = {Green Climate Fund}, year = {2017}, month = jun, url = {https://www.greenclimate.fund/sites/default/files/document/17240-productive-investment-initiative-adaptation-climate-change-cambio-ii.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }