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Implementation of Sustainable Agroforestry Systems for Cocoa Plantations
Strengthen sustainable agricultural production systems with the implementation of agroforestry systems for cocoa farms, to reduce the pressure of natural forests, as well as supporting farmers in having an additional income from the sale of the products obtained.

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Environmental Classification

Likely to cause minimal or no negative environmental and associated social impacts

Total Cost

USD 1,281,790.00

Country Counterpart Financing

USD 31,790.00

Original Amount Approved

USD 1,250,000.00

Financial Information

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Preparation Phase
Abstracto de CT - CO-G1038.pdf
Published Mar. 02, 2023

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Published 2023
Costos y beneficios de lograr la carbono-neutralidad en América Latina y el Caribe
¿Son el desarrollo y la descarbonización objetivos contradictorios o complementarios? En este informe, exploramos cómo América Latina y el Caribe pueden mejorar los resultados socioeconómicos y de desarrollo y al mismo tiempo alcanzar cero emisiones netas de gases de efecto invernadero para 2050. Específicamente, presentamos SiSePuede, un conjunto de herramientas de modelado de descarbonización de código abierto que evalúa los costos, beneficios y reducciones de emisiones en toda la economía. Descubrimos que maximizar las acciones podría lograr emisiones netas cero en la región antes de 2050 y 2,7 billones (millones de millones) de dólares netos en beneficios en comparación con el desarrollo más tradicional. Los beneficios incluyen enormes ahorros en costos de combustible; costos evitados por la reducción de la contaminación del aire, la congestión y los accidentes automovilísticos; y el valor de los servicios ecosistémicos de los bosques. Aunque hay muchos caminos hacia las emisiones netas cero, tres acciones son fundamentales: producir electricidad con energías renovables, electrificar el transporte y proteger y restaurar los bosques deteniendo la deforestación y cambiando los patrones de producción de alimentos. Las estrategias que abarcan a toda la economía y que implementan estas acciones a escala pueden reducir drásticamente las emisiones y generar enormes beneficios para la región, incluso en medio de profundas incertidumbres, con una mediana de 1 billón de dólares en beneficios netos en todos los escenarios. Estos beneficios se distribuyen de manera desigual entre sectores y actores y a lo largo del tiempo, por lo que lograrlos y garantizar una transición justa hacia cero emisiones netas requiere que los gobiernos superen importantes barreras financieras, regulatorias, de infraestructura y de otro tipo. Cada país debe adaptar su propia estrategia para abordar los objetivos de desarrollo y emisiones en función de las prioridades, capacidades, recursos y capacidad técnica locales. SiSePuede proporciona una base analítica sólida para respaldar estos esfuerzos.
Published 2021
Options to Achieve Carbon Neutrality in Chile: An Assessment Under Uncertainty
Chile aims to reach carbon neutrality. Its Nationally Determined Contribution (NDC) commits the country to reach net-zero emissions of greenhouse gases by 2050 and sets targets for emissions to be reduced progressively over time. To comply with the goals of the NDC, line ministries have considered a set of sectoral transformations, such as closing coal-fired power plants, promoting electric mobility, and increasing forest captures which, taken together, could bring emissions down to zero. This study evaluates how these sectoral transformations would fare under a wide range of economic, environmental, and technological uncertainties. It identifies the vulnerabilities of the strategy, that is, under what conditions sectoral transformations are insufficient to achieve net-zero emissions. It then quantifies options for making sectoral plans to deliver the NDC more robust, that is to reduce the likelihood of not achieving carbon neutrality. Additional measures discussed include speeding up retirement of coal-fired power plants, promotion of telework and non-motorized transport, reduction of beef consumption, expansion of thermal retrofitting of houses, increased afforestation, sustainable forest management, and expansion of protected areas. These measures are based on ideas proposed by sectoral experts during a participatory process. Finally, a macroeconomic evaluation finds that enhancing the set of measures put forward to comply with the NDC would result in a net gain of 0.8% of gross domestic product (GDP) by 2050, on the top of 4.4% GDP gain that the current NDC plans would bring.
Published 2021
NDC Invest Bulletin: Vol. 4, January 2021
The IDB Group supports the region through nature-based in Central America to address development challenges which are exacerbated by climate change. With a portfolio of about US $ 200 million, the Bank supports the design and implementation of REDD strategies focused on protection and management sustainable forest, value chain support and climate finance resource mobilization. These programs support countries to meet not only commitments under their NDCs, but also with national development priorities.
Published 2022
Payment for Ecosystem Services in Costa Rica: Evaluation of a Country-wide Program
Several countries have implemented payment-for-ecosystem-services (PES) programs, buoyed by the promise of these programs as a win-win strategy that would allow both the conservation of natural resources, and the reduction of poverty for rural households and communities. Our study evaluates the effect on deforestation of Costa Rica's PES program, one of the oldest country-wide programs in the world. Costa Rica approved the 1996 Forest Law (Law No. 7575), creating a PES program that compensates landowners for forest conservation. We estimate these effects using an event study design with staggered entry into treatment. Our results show a statistically significant effect for the first year with a decrease in deforestation of 0.21 ha, but not for the following years. Given that the baseline level of deforestation in our sample is low, the magnitude of the effect is large. When compared to the pre-2016 average level of within farm deforestation, our estimated effect would imply a 100% reduction in deforestation for the first year after enrollment. Given the program pays the participants for a 5-year period, and that the effect is significant only during the first year, it may be beneficial for the program to reduce its length and implement required simplified annual contract renewals or other behavioral interventions to reduce noncompliance in subsequent years.
Published 2021
Amazonian Forest: The Products of Agroecological Systems: Considerations about the Natural Forest and Economic Exploitation for its Conservation and How to Develop Sustainable Agroforestry Systems that Induce the Reduction of Deforestation
This study demonstrates that the economic activity of the Amazon's natural forest has great potential yet to be developed when considering Non-Timber Forest Products (NTFPs) and those coming from agro-ecosystems (SAFs). Preliminary financial analyzes, in systems that are still incipient, point to a great potential for profitability of these alternative systems compared to traditional activities such as soybean and livestock farming, with the advantage of being conducted without degradation and deforestation, allowing the continuation with the support of the Amazonian ecological system. More research is needed to scale successful cases and more “dialogue” between the models of modern agriculture and the traditional knowledge to reach an integrated natural forest management system.
Published 2022
Agricultural Productivity in El Salvador: A Preliminary Analysis
The need to enhance food security while reducing poverty along with the growing threat imposed by climate change clearly reveal that it is imperative to accelerate agricultural productivity growth. This paper estimates micro-level production models to identify the major factors that have contributed to productivity growth in El Salvador, including irrigation, purchased inputs, mechanization, technical assistance, and farm size, among others. The econometric framework adopted in this investigation is grounded on recent panel data stochastic production frontier methodologies. The results obtained from the estimation of these models are used to calculate Total Factor Productivity (TFP) change and to decompose such change into different factors, including technological progress, technical efficiency (TE), and economies of scale. The findings imply that efforts are needed to improve productivity in both technological progress and technical efficiency where the latter is a measurement of managerial performance. This in turn indicates that resources should be devoted to promoting the adoption and diffusion of improved technologies while enhancing managerial capabilities through agricultural extension.
Published 2021
Latin American and Caribbean Forests in the 2020s: Trends, Challenges, and Opportunities
This monograph presents expert assessments of four different facets of Latin American and Caribbean (LAC) forests at the start of the 2020s. In Chapter 1, Dan Nepstad and coauthors distill lessons from case studies of the application of various approaches to forest conservation and restoration in four countries: Brazil, Costa Rica, Ecuador, and Peru. In Chapter 2, Carlos Nobre and coauthors examine the two-way links between forests and climate change. They summarize what we know about the effects of climate change on forests and human migration in LAC, and the effects of forest loss and degradation on global and regional climate change. In addition, they present case studies of some of these links for Brazil and Costa Rica. In Chapter 3, Brent Sohngen explores LAC forest management, including LAC trends in international trade in timber and bioenergy, sustainable forest management, nontimber forest products, illegal logging, property rights, and climate change as it affects managed forests. In addition, Dr. Sohngen summarizes an original analysis of future timber supply potential using the Global Timber Model. Finally, in Chapter 4, Simone Bauch presents an analysis of the IADBGs experience with forest projects over the past 13 years. Having reviewed IADBG documents on all 99 forest projects approved by bank during this period and interviewed 23 current and former bank staff, Dr. Bauch presents a brief recent history of IADBG forest projects, an overview of the major determinants of project development, and an analysis of trends in forest projects, including their number, funding, objectives, themes, and locations. An Introduction by the editor, Allen Blackman, discusses the broad issues these expert assessment address and summarizes their key findings.
Published 2022
Credence Attributes and Opportunities: Yerba Mate in Paraguay
The value of yerba mate (Ilex paraguariensis) exports from Paraguay has recently increased dramatically. Much of this growth is due to positioning of the good within the universe of products where consumption growth is driven by perceptions of sustainable production and health benefits to consumers--that is, credence attributes creating a new dimension of demand. Credence claims for yerba mate's benefits to indigenous producing communities, environmental sustainability under certain production processes, healthful alternatives to energy drinks, are now widely known, but the growth of this awareness came via a new entrepreneurial strategy of a single firm. This case study explores the determinants of growth of credence-based exports of yerba mate from Paraguay, potential for increased growth, and the fragility of the credence-based model.
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