Strengthening the financial system in the Republic of Nicaragua to support priority investments of the public and private sectors to meet the NDC commitments

The proposal seeks USD 748,282 to enhance the administrative and legal capacity of the Ministerio de Hacienda y Crédito Público (MHCP) as the National Designated Authority, integrate climate finance into the regulatory frameworks of the Central Bank of Nicaragua and the Superintendency of Banks and Other Financial Institutions, and develop detailed sectoral investment plans for energy, industrial processes, and forest management as part of a broader Green Growth Strategy.

• The proposal identifies two primary barriers hindering Nicaragua's climate progress: a lack of institutional capacity among staff to understand climate threats and develop interventions, and limited financial capacity due to restricted fiscal space.
• The project aims to strengthen the Ministerio de Hacienda y Crédito Público (MHCP) by establishing a secure document management system, training 15 staff members in negotiating international climate finance legal agreements, and creating a procedure to analyze government policies for their potential to attract external financing.
• The proposal seeks to increase the availability of climate finance by addressing gaps in the regulatory institutions of the financial system, specifically the Central Bank of Nicaragua (CBN) and the Superintendency of Banks and Other Financial Institutions (SIBOIF).
• The project will develop three detailed sectoral plans for the first decade of the Green Growth Strategy (GGS), targeting priority sectors identified in the NDC for the period up to 2030.
• The energy sector plan will focus on investment projects intended to increase the share of electricity generation from renewable energy sources to 60% by 2030.
• The industrial processes and product use (IPPU) sector plan will focus on reducing the consumption of fluorinated gases as per the Kigali amendment to the Montreal Protocol, specifically promoting natural refrigerants with low global warming potential.
• The forest management and land use change (AFOLU) sector plan will promote agroecological production, shade-tolerant crops, reforestation of abandoned lands, and a reduction in extensive livestock practices to conserve carbon sinks.
• The total requested amount for the 18-month implementation period is USD 748,282, with the Central American Bank for Economic Integration (CABEI) serving as the implementing institution.

APA

Green Climate Fund (2022). Strengthening the financial system in the Republic of Nicaragua to support priority investments of the public and private sectors to meet the NDC commitments. https://www.greenclimate.fund/sites/default/files/document/20220226-strengthening-financial-system-republic-nicaragua-support-priority-investments-public-and.pdf

Chicago

Green Climate Fund. Strengthening the financial system in the Republic of Nicaragua to support priority investments of the public and private sectors to meet the NDC commitments. 2022. https://www.greenclimate.fund/sites/default/files/document/20220226-strengthening-financial-system-republic-nicaragua-support-priority-investments-public-and.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Strengthening the financial system in the Republic of Nicaragua to support priority investments of the public and private sectors to meet the NDC commitments |date=26 February 2022 |url=https://www.greenclimate.fund/sites/default/files/document/20220226-strengthening-financial-system-republic-nicaragua-support-priority-investments-public-and.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022strengthening, author = {{Green Climate Fund}}, title = {{Strengthening the financial system in the Republic of Nicaragua to support priority investments of the public and private sectors to meet the NDC commitments}}, institution = {Green Climate Fund}, year = {2022}, month = feb, url = {https://www.greenclimate.fund/sites/default/files/document/20220226-strengthening-financial-system-republic-nicaragua-support-priority-investments-public-and.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }