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Technical assistance to strengthen public planning on climate change adaptation and mitigation and improve public, private and international climate finance approaches in Honduras

Category: Climate action
Status: completed
Country: Honduras

Background

The Honduran Government places high priority on achieving the Sustainable Development Goals (SDGs), which have been brought to national level in the “Agenda 2030”. In addition, the government seeks to harmonize the achievement of the Agenda 2030 with climate mitigation and adaptation goals, according to their Nationally Determined Contributions (NDCs). To strengthen the Honduran government for fulfilling these goals, BMZ financed the project “Supporting the implementation of the 2030 Agenda in Honduras” (ProAgenda),which was implemented by GIZ until 2023.

In this context, HEAT’s project collaborated and coordinated closely with several public bodies of the Honduran government. HEAT’s team coordinated with the Ministry of Finance (SEFIN), including several general directorates, the Ministry of Natural Resources and Environment (SERNA), the Ministry of Strategic Planning (SPE), as well as the Ministry of Agriculture and Livestock and the Institute of Forest Conservation. Also, the team worked with the private sector, especially represented by the Honduran Association of Banking Institutions (AHIBA) and the Honduran Council of Private Enterprise (COHEP). These organisations participated in capacity building activities, mainly on climate finance, including the labelling of climate projects in the public budget, capacity building for inter-institutional coordination, and the promotion of gender and social inclusion.

HEAT Services

The consultancy addressed four work packages and deliverables:

  1. Mainstreaming climate change into sectoral planning and supporting the inter-institutional coordination mechanism;
  2. Technical assistance to develop a digital method for climate proofing of public budgets;
  3. Support to the institutional anchoring of climate finance management in SEFIN;
  4. Private sector-focused climate finance strategy.

HEAT’s work contributed significantly to the overall objective of ProAgenda, as it strengthened the capacities of the Honduran public sector in public planning and climate finance. SEFIN, SERNA and SPE developed and strengthened knowledge and capacities in climate planning and financing. AHIBA and COHEP have also strengthened their knowledge in climate finance.

Further outcomes include the design and establishment of an Inter-Institutional Coordination Mechanism; a climate labelling method for public projects was designed and agreed upon (Excel-based tool for climate tagging); progress was made towards the operationalisation of the Economic and Financial Management Unit for Climate Change (UGEFCC) in SEFIN through training and proposed functions; and finally, a strategy to mobilise climate finance for the private sector was developed and has been approved by the private sector.

Project Facts

Client: GIZ
Partner: Asociación Hondureña de Instituciones Bancarias (AHIBA); Consejo Hondureño de la Empresa Privada (COHEP); Secretaría de Finanzas de Honduras (SEFIN); Secretaría de Recursos Naturales y Ambiente de Honduras (SERNA); Secretaría de Planificación Estratégica (SPE); To a lesser extent: Consejo Nacional Supervisor de Cooperativas (CONSUCOOP) and Federación de Cooperativas de Ahorro y Crédito de Honduras (FACACH)
Period: 10/2022 - 10/2023
Volume: 248,625 Euro
Last update 06/2024

Main outcomes:

The overall results of the consultancy were:

  • Inter-institutional linkages of government institutions relevant to ProAgenda were strengthened and expanded, especially through the inter-institutional coordination mechanism.
  • The flow of institutional arrangements for climate finance in Honduras was socialised, validated and fed back.
  • Priority themes for capacity building were identified and agreed upon, in order to conduct specific consultancies and exchanges with institutions; and a series of trainings and lectures for capacity building of public and private entities were executed.
  • Concepts and approaches related to climate finance were harmonised in the public sector as well as the private sector. Subsequently, a common language on climate finance was consolidated among the different institutions, including the private sector.
  • Knowledge on climate tagging was socialised, generated and reinforced, in particular on the application of a climate proofing tool for public projects and programmes.
  • The importance of applying a gender equity approach to climate change in projects and registration systems was reinforced.
  • A strategy to mobilise climate finance for the private sector was designed and developed. The strategy was socialised with AHIBA, COHEP, as well as with social economy actors (FACACH, CONSUCOOP). AHIBA approved the strategy and it is ready to be discussed with the public sector when the political conditions are favourable.

Tools:

  • An Excel-based tool for climate labelling (climate proofing) of public projects and programmes

Contact

irene edit
Irene
Papst
Senior Consultant | Business Area Coordinator Climate Action
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