Honduras

Prioritizing Forest and Landscapes: Technical Assistance to Assess Opportunities for Growth, Poverty Alleviation and Increased Resilience

Cangrejal river running through forests and hills in Hondruas

Program Summary

This activity strengthens the analytical and economic case for improved landscape management in Honduras. The analytical work will support the prioritization of forest and landscapes as the country develops its Systematic Country Diagnostic (SCD) / Country Partnership Framework (CPF). By informing policy discussions and decision-making on the role and opportunities of sustainable landscape management for economic recovery in Honduras, this activity also supports the implementation of the Nationally Determined Contributions (NDC) and the National Program for the Recovery of Goods and Services in Degraded Ecosystems (PNRBSED), as well as promote sustainable natural resource management practices that support economic development for poor and marginalized communities.

Challenge

Extensive land degradation and deforestation represent a major challenge to Honduras’s development. The current deforestation rate of over 2 percent per year in Honduras is nearly twice the average for Central America and one of the highest in Latin America. Honduras established the PNRBSED and has committed to reforest 1 million hectares of forest before 2030 in its NDC. However, the COVID-19 pandemic and the aftermath of hurricanes Eta and Lota are significantly impacting the economy, exacerbating existing challenges and constraining fiscal space. These challenges pose a risk that stimulus packages for post-crisis response, might prioritize quick financial returns over longer term climate and sustainability objectives, while also (inadvertently) exacerbating deforestation and environmental degradation.

Approach

The World Bank aims to prepare a CPF in Fiscal Year 2022 and is updating the 2015 SCD. While key challenges and opportunities faced by Honduras remain broadly in line with the ones identified in the 2015 SCD, it is necessary to update various elements based on the COVID-19 pandemic. The SCD update is expected to provide valuable information to inform policies for strengthening economic and social resilience. To ensure the SCD update addresses ecosystem resilience and household dependence on natural capital, new analysis will be conducted to map out a comprehensive approach to improve livelihoods of natural resource-dependent communities, restore landscapes, and reduce forest deforestation and degradation.

[Expected] Results

  • Increased capacity and awareness to inform evidence-based policy design.
  • Collaboration and coordination among development partners, including GIZ and FAO.
  • Increased capacity and awareness to inform the NDC update, review processes, and economic recovery stimulus packages
  • Increased awareness and understanding on the role and contribution of forests in the national economy, including job creation, climate change, and COVID-19 recovery.

Pillars