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Implementation of the Forest Investment Attractiveness Index (IAIF)
The objective of the operation is to improve the business climate for sustainable forest investments and, hence, an increased contribution of the forestry sector to the socio economic development of the region's countries. The specific objectives are: (i) to license and transfer the IAIF and PROMECIF methodologies to the consulting firms; (ii) to collect primary and recent secondary data; (iii) to compute the 2004 IAIF for LAC countries; and (iv) to design, and assist in the pilot implementation of PROMECIF to improve the forest sector business investment climate (hence, the index performance) for Guatemala and Paraguay

Project Detail

Country

Regional

Project Number

RG-T1172

Approval Date

July 13, 2005

Project Status

Closed

Project Type

Technical Cooperation

Sector

AGRICULTURE AND RURAL DEVELOPMENT

Subsector

AGRIBUSINESS

Lending Instrument

-

Lending Instrument Code

-

Modality

-

Facility Type

-

Environmental Classification

-

Total Cost

USD 150,000.00

Country Counterpart Financing

USD 0.00

Original Amount Approved

USD 150,000.00

Financial Information
Publications
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.
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.
Courses
Published 2024
Padrão de Desempenho Ambiental e Social 2. Mão de Obra e Condições de Trabalho
O curso sobre o Padrão 2 de Desempenho Ambiental e Social, Mão de Obra e Condições de Trabalho, destaca a importância da força de trabalho e de sua contribuição para o crescimento econômico no âmbito das estruturas que protegem os direitos fundamentais. Por meio de vídeos, podcasts, exercícios, infográficos e testes, você compreenderá a importância de empregador e trabalhadores manterem relações construtivas, pautadas pelo tratamento justo e por condições seguras e saudáveis de trabalho, para ampliar a eficiência e a produtividade dos projetos de desenvolvimento. 
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.
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