CABEI receives first disbursement of US$7.2 million from the Green Climate Fund to implement the Central American Dry Corridor and Arid Zones Program in the Dominican Republic

Tegucigalpa, Honduras, September 5, 2024 - The Central American Bank for Economic Integration (CABEI) received a disbursement of US$7.2 million from the Green Climate Fund (GCF). These resources will be used to begin implementation of the "Ecosystem-based Adaptation to Increase Climate Resilience in the Central American Dry Corridor and Arid Zones of the Dominican Republic," a key initiative aimed at addressing the pressing challenges posed by climate change in the region.

The Central American Dry Corridor, a vast and ecologically fragile region stretching across Central America, is particularly vulnerable to the impacts of climate change, including droughts, extreme weather events and land degradation. The program seeks to improve the resilience of communities and ecosystems in this region by promoting Ecosystem Based Adaptation (EbA) measures for good land management, improved water resource management, and livelihood diversification.

"This disbursement marks an important milestone in our partnership with the Green Climate Fund and highlights our commitment to address the urgent challenges of climate change in Central America," said CABEI Executive President Gisela Sánchez. "The financing will allow us to expand our efforts to support sustainable development and climate resilience in the region."

The US$7.2 million disbursement is the first in a series of disbursements from the GCF to CABEI for this Program, totaling US$174.3 million. This operation will also deploy a financial mechanism that will facilitate access to reimbursable resources in this region for the implementation of EbA measures. The funds will be used to finance a variety of activities, among them:

• Water collection systems: the implementation of rainwater collection systems can help communities to collect and store water during the rainy season for use during dry periods.

• Soil conservation: the use of soil conservation techniques, such as contour plowing and terracing, can help prevent soil erosion and maintain soil fertility in the dry corridor.

• Diversified livelihoods: such as agroforestry and ecotourism, can reduce the dependency on agriculture and increase sources of income in the face of climate change.

• Community agroforestry: planting trees in the basins to improve soil health, reduce erosion and provide shade for crops, thus improving resilience to climate change.

CABEI consolidates its alliance with a key strategic partner such as the Green Climate Fund and commits to continue promoting positive and climate-resilient transformation for the countries of the region.