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FOREST INVESTMENT PROGRAM PREPARATION
Preparation of a market study to inform the development of the IDB group's participation in the Mexico Forest Investment program and implementation of safeguards.

Project Detail

Country

Mexico

Project Number

ME-T1210

Approval Date

February 29, 2012

Project Status

Closed

Project Type

Technical Cooperation

Sector

ENVIRONMENT AND NATURAL DISASTERS

Subsector

ENVIRONMENTAL MANAGEMENT AND GOVERNANCE

Lending Instrument

Instrumento del Fondo Multilateral de Inversiones

Lending Instrument Code

MIF

Modality

-

Facility Type

-

Environmental Classification

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

Total Cost

USD 115,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 115,000.00

Financial Information
Operation Number Lending Type Reporting Currency Reporting Date Signed Date Fund Financial Instrument
ATN/SX-13185-ME Non-Sovereign Guaranteed USD - United States Dollar Strategic Climate Fund Nonreimbursable
Operation Number ATN/SX-13185-ME
  • Lending Type: Non-Sovereign Guaranteed
  • Reporting Currency: USD - United States Dollar
  • Reporting Date:
  • Signed Date:
  • Fund: Strategic Climate Fund
  • Financial Instrument: Nonreimbursable

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Implementation Phase
https://www.iadb.org/document.cfm?id=EZSHARE-631912904-10749
Programa de financiamiento a proyectos de bajas emisiones de carbono en paisajes forestales ME-L1120Términos de [36814589].docx
Published Apr. 20, 2012
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https://www.iadb.org/document.cfm?id=EZSHARE-631912904-10748
Donors Memorandum [36708746].PDF
Published Apr. 20, 2012
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https://www.iadb.org/document.cfm?id=EZSHARE-631912904-10750
Estudio de Líneas de Financiamiento para la promoción de programas en el sectorUso del Suelo, Cambio de Uso del [36817186].DOCX
Published Apr. 20, 2012
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Publications
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.
Publications
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.
Publications
Published 2021
Nature-based Solutions in Latin America and the Caribbean: Financing Mechanisms for Regional Replication
Innovative financing models are emerging globally to advance nature-based solutions (NBS) that can cost-effectively enhance infrastructure performance, meet Sustainable Development Goals, and mitigate the negative impacts of climate change. Despite the potential for NBS to generate attractive returns and provide significant cost-savings, these financing models remain underutilized. Consequently, NBS are not achieving their full potential and a tranche of pent up green capital is sidelined. This report highlights five proven NBS financing strategies that leverage private finance: green bonds, blended market-rate and concessional loans, land-based financing strategies, insurance policies, and endowments. This report also outlines current barriers to the successful scaling of these financing strategies in Latin America and the Caribbean and identifies the approaches and enabling conditions needed to overcome them.
Publications
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.
Publications
Published 2023
Connexa: No. 20: Diciembre, 2023: síntesis trimestral de información y datos sobre integración y comercio
En esta edición de Connexa se presenta un resumen del desempeño del sector externo de América Latina y el Caribe (ALC) a lo largo de 2023, detallando el comportamiento de variables clave para las exportaciones de bienes como los precios de los productos básicos, la demanda global, los fletes y los tipos de cambio. Asimismo, se analiza el comportamiento de la inversión extranjera directa. En el ámbito de los acuerdos comerciales, se presentan los avances de la región en las negociaciones tanto intra como extrarregionales.
Publications
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.
Publications
Published 2021
Impact Investment for Biodiversity Conservation: Cases from Latin America and the Caribbean
More than 30% of the earths available freshwater and almost 50% of the worlds tropical forests are found in the Latin America and Caribbean (LAC) region and possesses a vast array of terrestrial, freshwater, coastal, and marine ecosystems. This unique source of capital -- natural capital -- generates important life-supporting benefits for people called ecosystem services. The term “natural capital” refers to the terrestrial and marine ecosystem components, including biodiversity, that contribute to the generation of valuable goods and services for humankind now and in the future. A shortfall in funding to protecting natures assets and biodiversity can be partially addressed through mobilization of private investment by supporting private actors that are sustainably leveraging natural capital, facilitating private investment in conservation and restoration projects, and fostering private innovation in sustainability solutions. This report characterizes and evaluates the performance of innovative finance approaches in LAC including blended finance, green bonds, payment for ecosystem services (PES), capital markets solutions, habitat banks, direct equity and pooled funds, and accelerators. As countries seek to reach their commitments under the Convention on Biological Diversity, the Paris Climate Accord, and Sustainable Development Goals 14 and 15, innovative finance could become an essential complement to public finance and a catalyzer to achieve those commitments through the sustainable use of nature, while ensuring local livelihoods and a more inclusive development.
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