Fiscal policy reform for a Green Economy and NDC implementation: restoration and sustainable landscape management in El Salvador - Internationale Climate Initiative (IKI)
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Fiscal policy reform for a Green Economy and NDC implementation: restoration and sustainable landscape management in El Salvador

As of: June 2021

Shortcomings in landscape management in El Salvador have aggravated the impacts of climate change. The country has included ambitious plans for landscape restoration in a package of measures intended to counter the resultant challenges. The project is helping the partner government to integrate existing government policies and incentives for the land use sector with national policies in the Ecosystems and Landscapes Restoration Program (PREP) as well as REDD+. A programme for government incentives to maintain and expand agroforestry systems is also being drafted, which will be deployed subsequently to implement PREP and the country’s forestry policy. To this end, the project is examining existing policy and incentive structures for the agricultural sector as well as PREP targets, identifying options for integration and developing action plans for their implementation. The project is also developing pilot measures for state-run incentive schemes aimed at maintaining and expanding agroforestry systems.

State of implementation/results

  • Progress in dialogue and discussion with different institutions/stakeholders is taking place in the construction of the incentive program.
  • The project undertook a series of consultation and validation events, in which more than 100 people (96 men and 24 women) from Central and Local Government institutions, NGOs, community and producer Associations and International Organizations have participated. The consolidation of the contributions converged into three common elements for the construction and effective implementation of an incentive program for restoration: inter-institutional coordination, the biophysical and socio-economic characterization of the territories in which the incentives will be implemented, and the development of a comprehensive and complementary approach to local restoration efforts.
  • An evaluation of existing policies and incentives aimed at the conservation, restoration and adoption of sustainable agricultural practices was carried out. This included the identification of barriers to its implementation and evaluation of the effectiveness.
  • Based on the results of the evaluation, territorial consultations and the validation of the Ministry of Environment and Natural Resources (MARN), three models or incentive schemes will be developed: 1) Financial incentive: Credit and financial support mechanism, taking advantage of the Green Protocol signed between MARN and the three national banking institutions; 2) Mixed incentive (economic and non-economic) to facilitate the regularization of activities or projects based on improving land use and redirecting the environmental compensation of large, medium, and small companies; 3) Incentive for the recognition of benefits and ecosystem services generated in agricultural production systems.
  • The project’s implementing partner (Environmental Investment Fund of El Salvador) is consolidating a targeted restoration practice manual. The manual will be publicly available in November 2020.
  • The project has organized three virtual exchanges – in lieu of a physical workshop – in order to provide a space for learning and South-South cooperation with other incentive programs applied in Latin America and the Caribbean. Guatemala and Costa Rica will participate with their respective forest incentive programs, the Dominican Republic will bring the experience of watershed management and payment for environmental services, and the German Cooperation GIZ will present the Green Development Fund, an investment mechanism of mixed funds (public and private) for the implementation of ecosystem restoration projects in landscapes in Central America.
  • The project is actively participating in the different knowledge exchange activities (webinars, workshop, survey, peer learning, newsletter, etc.) organized by the ACCIÓN Clima II project which coordinates the newly established interface for IKI projects in Central America and the Caribbean.

Project data

Country:
El Salvador

Implementing organisation:
United Nations Environment Programme (UN Environment) - Panama

Political partner(s):
  • Environmental Sustainability and Vulnerability Cabinet
  • Ministry of Agriculture (MAG) - El Salvador
  • Ministry of Environment and Natural Resources (MARN) - El Salvador

Implementing partner(s):
  • Initiative of the Americas Fund (FIAES – Fondo de la Iniciativa para las Américas)

BMU grant:
800.000,00 €

Duration:
12/2018  till  06/2022




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