Consideration of funding proposals - Addendum VI Funding proposal package for FP174
Summary
The programme targets seven catchments across Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, Panama, and the Dominican Republic to combat droughts and extreme rainfall. It employs a blended finance model consisting of a US$28 million grant facility for vulnerable communities, a US$102.8 million lending facility for EbA investments, and a US$30 million guarantee facility to de-risk lending for partner financial institutions. Key activities include reforestation, agroforestry, the installation of rainwater harvesting systems, and the establishment of a regional knowledge hub to mainstream EbA into national policies. The programme aims to directly benefit approximately 1.08 million people.
Key insights
- The programme targets the Central American Dry Corridor and the Arid Zones of the Dominican Republic, regions where temperatures are projected to increase by 3–3.5°C under RCP4.5 and 6–7°C under RCP8.5 by the end of the century.
- The total financing for the programme is US$ 268.4 million, with the Green Climate Fund (GCF) providing US$ 174.3 million (comprising US$ 84.3 million in grants, US$ 60 million in loans, and US$ 30 million in guarantees).
- The programme establishes three financial facilities: a US$28 million grant facility for bottom-up local EbA activities, a US$102.8 million EbA lending facility for farm- and household-level investments, and a US$30 million guarantee facility to encourage financial institutions to provide EbA finance.
- The programme aims to directly benefit approximately 1,084,441 people, with 134,694 of these individuals expected to access loans for adaptation measures.
- Planned landscape interventions include the restoration of 5,170 hectares of natural forest, the establishment of 4,160 hectares of forest protection zones, and the creation of 5,305 hectares of sustainable fuelwood and timber plantations.
- Water-efficient technology targets include the installation of 109 rainwater harvesting systems on community buildings, 156 community-level rainwater reservoirs, and 38 solar-powered water pumping stations.
- The programme will establish a regional knowledge hub linked to the Central American Commission for Environment and Development (CCAD) to disseminate EbA best practices and mainstream adaptation into national policies.
- The programme is executed by a consortium including the Central American Bank for Economic Integration (CABEI) as the accredited entity, the Food and Agriculture Organization (FAO), and the Central American Commission for Environment and Development (CCAD).
- A Gender Action Plan (GAP) has been developed to address the disproportionate impact of climate change on women, including targets for women's participation in decision-making and the creation of women-oriented financial products.
- The Independent Technical Advisory Panel (TAP) endorsed the proposal conditionally, requiring a detailed ex-ante EbA Intervention Validation Process and the completion of catchment-specific EbA plans before grant disbursement.
Cite the original document
- APA
- Green Climate Fund (2021). Consideration of funding proposals - Addendum VI Funding proposal package for FP174. https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add06.pdf
- Chicago
- Green Climate Fund. Consideration of funding proposals - Addendum VI Funding proposal package for FP174. 2021. https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add06.pdf.
- Wikipedia
- {{cite report |author=Green Climate Fund |title=Consideration of funding proposals - Addendum VI Funding proposal package for FP174 |date=14 September 2021 |url=https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add06.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{greenclimatefund2021consideration, author = {{Green Climate Fund}}, title = {{Consideration of funding proposals - Addendum VI Funding proposal package for FP174}}, institution = {Green Climate Fund}, year = {2021}, month = sep, url = {https://www.greenclimate.fund/sites/default/files/document/gcf-b30-02-add06.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }
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