Compliance Review Report Case C-0006-Nicaragua FP146: Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres

The IRM found that the Bio-CLIMA project in Nicaragua failed to comply with GCF safeguards regarding conflict sensitivity, human rights due diligence, and informed consultation and participation (ICP). Specifically, the project did not adequately assess recurrent violent conflicts between indigenous communities and non-indigenous settlers, nor did it conduct meaningful consultations on key project components like Peaceful Co-habitation Regime Agreements (PCRAs). The IRM warns that the current design may reward illegal land occupation and exacerbate violence. It recommends conducting a macro-level conflict sensitivity analysis, a human rights due diligence report, and a framework-level ICP process before any project activities commence.

• The project is non-compliant with GCF safeguard policies because it failed to conduct a conflict sensitivity analysis and a human rights due diligence report during the design phase, despite ongoing recurrent violent conflicts in the project areas.
• The project failed to meet GCF requirements for Informed Consultation and Participation (ICP) with indigenous communities, particularly regarding the disclosure and discussion of Peaceful Co-habitation Regime Agreements (PCRAs).
• The project's use of PCRAs may create perverse incentives by rewarding non-indigenous settlers who occupied lands through violence or fraud, potentially providing them security of tenure while ignoring the losses of displaced indigenous occupiers.
• There is a significant risk that the project will exacerbate existing violent conflicts in the North Caribbean Coast Autonomous Region (RACCN), where massacres and forced displacements of Mayangna and Miskitu peoples have been documented.
• The IRM identified a restrictive environment for civil society in Nicaragua, including the closure of hundreds of NGOs, which threatens the possibility of conducting free and fair ICP or FPIC processes without fear of retaliation.
• The project is non-compliant with Performance Standard 5 because it failed to assess the need for compensation for indigenous people who lost access to land and resources due to the settlers who may now receive PCRAs.
• The IRM found that the GCF Secretariat's 'second-level due diligence' was overly reliant on information provided by the Accredited Entity (CABEI) and failed to probe the severity of the conflict situation using available external data.
• The project's reliance on Indigenous Territorial Governments (GTIs) as the primary decision-making bodies is contested, as some stakeholders argue that Communal Assemblies are the highest authority under Law 445.
• The IRM recommends that the GCF Secretariat, rather than the Accredited Entity, should hold the approving authority for the selection of the independent third-party monitor to ensure impartiality.
• The IRM suggests that the GCF's Sustainability Unit is understaffed, noting that only one staff member is assigned to review indigenous peoples' issues despite the high volume of sub-projects.

APA

Green Climate Fund (2022). Compliance Review Report Case C-0006-Nicaragua FP146: Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres. https://irm.greenclimate.fund/sites/default/files/case/en-irm-case-c0006-final-compliance-review-report.pdf

Chicago

Green Climate Fund. Compliance Review Report Case C-0006-Nicaragua FP146: Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres. 2022. https://irm.greenclimate.fund/sites/default/files/case/en-irm-case-c0006-final-compliance-review-report.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Compliance Review Report Case C-0006-Nicaragua FP146: Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres |date=31 August 2022 |url=https://irm.greenclimate.fund/sites/default/files/case/en-irm-case-c0006-final-compliance-review-report.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2022compliance, author = {{Green Climate Fund}}, title = {{Compliance Review Report Case C-0006-Nicaragua FP146: Bio-CLIMA: Integrated climate action to reduce deforestation and strengthen resilience in BOSAWÁS and Rio San Juan Biospheres}}, institution = {Green Climate Fund}, year = {2022}, month = aug, url = {https://irm.greenclimate.fund/sites/default/files/case/en-irm-case-c0006-final-compliance-review-report.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }