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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 Bio-CLIMA project aims to transform extensive cattle ranching and agriculture in Nicaragua's Caribbean Region into sustainable, deforestation-free production. The project targets the buffer zones of the BOSAWÁS and Rio San Juan Biosphere Reserves, focusing on 66,223 hectares and approximately 26,260 direct beneficiaries. It employs a three-pronged strategy: providing technical assistance and financial incentives for climate-smart production modules (silvo-pastural, agroforestry, and sustainable forest management), strengthening local governance and law enforcement, and developing adaptive capacity through training and early warning systems. The project is estimated to cost USD 110.4 million, with USD 79.8 million requested from the Green Climate Fund as a mix of grants and loans.