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NS-309 - Reduction of greenhouse gases emission through the sustainable forest landscapes management by vulnerable rural producers in Guatemala

Guatemala

NAMA Seeking Support for Preparation

  • A Overview
    • A.1Party
      A.2Title of Mitigation Action

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      A.3Description of mitigation action

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      Guatemala is a subtropical country located in Central America, with an area of ​​108,800 km2, 16 million inhabitants and a high cultural diversity with four major ethnic groups (Maya, Garifuna, Xinca and Mestiza). In addition, it has a high natural diversity, being recognized since 2010 as one of the 19 megadiverse countries of the world

      In 1996, the Forestry Law (Decree 101-96) established a Forestry Incentive Programme (PINFOR, after its Spanish name) valid until 2016. Meanwhile, in 2010, through Act 51-2010, the Forestry Incentive Program for Owners of Small Land Extensions suitable for Forestry and Agroforestry (PINPEP, after its Spanish name) was established without time-limitation. Through these programs, more than 400,000 ha of forests have been established and managed in the country and has benefited more than one million people (http://inab.gob.gt/). 
       
      However, despite the country´s commitment to promote the sustainable management of forest landscapes through forest plantations, agroforestry systems and natural forests, Guatemala continues to have high rates of deforestation: between 1990 and 2015 the country lost more than one million hectares of forests, accounting for 25% of its forest cover (FAO, 2015). This is due in part to the fact that at this moment the demand for these forest incentive programs greatly exceeds the response capacity of the government agencies in charge of their management, reducing the possibility for new users to access these programs, as well as the attention needed to other problems such as illegal logging. 
       
      Additionally, economic, financial and technological barriers, in particular aspects such as access to markets, investment capital and cost / effective forest management, prevent small Guatemalan producers from incorporating strategies for sustainable management of forests and agroforestry in the territories. 

      This project seeks to support Guatemala in the fulfillment of its NDCs (2015)[1], by addressing these barriers to encourage small producers in the country to manage forest in a sustainable manner, as well as to support the continuity and the strengthening of the national programs already established such as PROBOSQUE and PINPEP. This will be accomplished through capacity building both at the institutional level and with small producers; the incorporation of business models and financing mechanisms that guarantee long-term economic sustainability for producers engaged in sustainable forest production; and the incorporation of carbon monitoring instruments to verify the progress made. With this, the project seeks to reduce carbon emissions of 1,082 million tCO2 that will directly benefit 6,000 forestry and agroforestry producers, and will boost sustainable forest management as a transformational agent of their livelihoods, supported by access to financing and diversification of the offer.

      This NSP[2] project with the development of a financial mechanism that has a guarantee fund of EUR 400,000 with the NAMA Facility will catalyze credits from the private financial bank of EUR 1.2 million (at a ratio of 1: 3), keeping in mind the analysis of investment opportunities for other potential types of financing mechanisms. Furthermore, the project will encourage mobilizing EUR 6.2 million in public financing through the forestry incentive programs PINPEP and PROBOSQUE (its acronyms in Spanish)
      A.4Sector





      A.5Technology









      A.6Type of action




      A.7Greenhouse gases covered by the action




  • B National Implementing Entity
    • B.1.0Name
      B.1.1Contact Person 1
      B.1.2Address
      B.1.3Phone
      B.1.4Email
      B.1.5Contact Person 2
      B.1.6Address
      B.1.7Phone
      B.1.8Email
      B.1.9Contact Person 3
      B.1.10Address
      B.1.11Phone
      B.1.12Email
      B.1.13Comments

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  • C Expected timeframe for the preparation of the mitigation action
    • C.1Number of months for completion
  • D Currency
    • D.1Used Currency
      Conversion to USD: 1
  • E Cost
    • E.1.1Estimated full cost of preparation
      Conversion to USD: 327,457
      E.1.2Comments on full cost of preparation

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      NSP funding volume
      requested from the NAMA Facility

      Preparation (DPP):

      EUR 235,123.70 (requested NF grant, see section 4.2)

      Implementation:

      EUR 5,500,000.00 (indicative NF grant, see section 4.1)

      Total:

      EUR 5,735,123.71

  • F Support required to prepare the mitigation action
    • F.1.1Amount of Financial support
      Conversion to USD: 304,171
      F.1.2Type of required Financial support





      F.1.3Comments on Financial support

      This field is limited by 5000 characters.

      This NSP[1] project with the development of a financial mechanism that has a guarantee fund of EUR 400,000 with the NAMA Facility will catalyze credits from the private financial bank of EUR 1.2 million (at a ratio of 1: 3), keeping in mind the analysis of investment opportunities for other potential types of financing mechanisms. Furthermore, the project will encourage mobilizing EUR 6.2 million in public financing through the forestry incentive programs PINPEP and PROBOSQUE


      [1] NSP:  NAMA Support Project.

      F.2.1Amount of Technical support
      Conversion to USD: 0
      F.2.2Comments on Technical support

      This field is limited by 5000 characters.

      F.3.1Amount of capacity building support
      Conversion to USD: 0
      F.3.2Type of required capacity building support


      F.3.3Comments on Capacity Building support

      This field is limited by 5000 characters.

  • G Relevant National Policies strategies, plans and programmes and/or other mitigation action
    • G.1Relevant National Policies

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      • The Framework Legislation on Climate Change of Guatemala, 2013 (Decree 7-2013)[1] created government structure to provide response to its priorities on climate change: reduce vulnerability to environment disasters, build capacities for adaptation and mitigate the greenhouse gases (GHG) emission that are developed in the National Policy on Climate Change of 2009 (Government Agreement 329-2009).
      • As fulfillment of the Article 11 of this legislation, the National Board on Climate Change developed and approved a “National Action Plan on Climate Change -PANCC” in 2016. Reduction of GHG emissions in the sub-sector of land use change and forestry is a comprehensive portion of the PANCC.
      • The National Development Plan “K'atun Nuestra Guatemala 2032” (SEGEPLAN, 2014)[2], states that the national planning system will work in policies, plans, and budget based on the results given by the sectoral and regional policies of management; it will also control and log the public investment with transparency. “K’atun Nuestra Guatemala 2032” plan, includes clear and concrete goals to mitigate GHG in all the sectors.
      • In the Nationally Determined Contributions (NDC, 2017), the country took the compromise to reduce 11.2% of the total GHG emissions, projected by 2030, based on the Emissions Inventory 2005. In the same NDC, the country offers a more ambitious reduction up to 22.6% of the total GHG emissions, projected by 2030 (based on the Inventory 2005), with the condition on new financial and technical support by the international community. One of the aspects to be considered for the achievement of the NDC objectives is the continuity and strengthening of forest incentive programs such as PINPEP and PROBOSQUE.
      • The forest is closely linked to this dynamic, since the estimation is that 17.4% of the world GHG emissions come from losing forests. However, in the case of Guatemala, losing forest due to use land change represents 57% of total carbon dioxide emissions, which means a demand to protect, preserve, and manage forests in a sustainable way. Taking into consideration that some land uses report income in a shorter period than forest management, therefore investment in the forestry business is unattractive to producers.
      • The forestry sector should base the sustainable forestry management and should be linked to national actions of mitigation and adaptation to climate change, considering the abilities and responsibilities defined by the Forestry Act, Decree 101-96, and forged with other forestry policy instruments as the Forestry Incentive Programmes PINPEP, Decree 51-2010; and PROBOSQUE, Decree 02-2015. The agenda of the Instituto Nacional de Bosques on Climate Change considers all above, as a harmonization of functions and activities. 2013 – 2016[3].
      • Since 2014, the institution works in the National Strategy for the Approach Deforestation and Forest Degradation in Guatemala. REDD+ Strategy. The REDD+ Strategy includes reduction of greenhouse gases (GHG) emissions through preventing deforestation, preventing forest degradation, increasing carbon stocks and sustainable forestry management.[4]
      • The National Development Strategy with Low Emissions “Guatemala Huella CerO2”[5] includes firewood as a priority to reduce emissions, sustainable forestry management and use of renewable sources for energy generation. The NDC of Guatemala establish forests and energy as main sectors to reduce emissions, including early contributions for 2016-2020, given its importance in the GHG inventories.[6]
      • In 2015, the proposal of Efficient use of firewood and alternative fuels in indigenous communities of Guatemala, that was proposed from the Energy sector, was presented to the NAMA Facility (4th call). NAMA's cooperation was requested for EUR € 11.00 million, with a mitigation possibility of 2.1 million tCO2e from the 5th year. The base was the Inter-Institution Strategy of efficient use and sustainable management of firewood, which was mainly fostered by INAB. It considered the lines of sustainable management of firewood, support of forestry incentives (PINFOR and PINPEP), training and forestry extension. It means, INAB works in a coordinated way with PRONACOM and other stakeholders with the inter-institutional participation in the NSP 4th call project and in the firewood production sustainability through forestry incentives.
      The co-benefits of reducing emissions (tCO2 e) for activities in the forestry sector and land use, impacts directly the rural population by improving family economy, increasing work source in the production, organizational strengthening and human abilities, increasing food security and conserving other environment services and soil protection and water collection/regulation.
      G.2Link to other NAMAs
  • H Attachments
  • I Support received
    • I.1Outside the Registry

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      I.2Within the Registry
      Support providedSupportTypeAmountCommentDate
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