Increasing the ambition of the Nationally Determined Contributions and climate financing in the Central America

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Increasing the ambition of the Nationally Determined Contributions and climate financing in the Central America

This proposal will enhance the technical, institutional, and operational capacity of the Governments of Nicaragua, Honduras, El Salvador, Dominican Republic, and Guatemala in meeting their NDCs ambitions through strengthened national and regional coordination, enabling conditions and stakeholder engagement.

The current ambition levels of national climate commitments are insufficient if global warming is to be limited at 2oC and even more inadequate if a 1.5oC scenario is desired1. Central America is one of the world’s most vulnerable regions to climate change. The region is already exposed to multiple climate-related hazards, such as tropical cyclones, floods, droughts, and heatwaves impacting on the local communities and ecosystems. In addition, the region’s energy needs and emissions are rising concurrently with population growth and socio-economic development. Comprehensive and ambitious actions aimed at long-term adaptation planning, disaster risk reduction and low carbon development need to be clearly defined at national and sub-national levels and aligned with Central America’s regional priorities.

There is increasing emphasis on regional collaboration on climate change, economic development and accelerating social, political, and economic interdependence amongst countries in the process. In this context, the climate ambitions of countries need to take into account the regional integration efforts and align their mechanisms and instruments (e.g., MRV systems) for implementing measurable and financeable climate goals. Furthermore, the countries also recognize the importance of NDCs to account for joint actions that align with the sub-region’s aspirations for the conservation of biodiversity and to achieve net zero emissions by 2050.

Among the specific needs identified by countries that this proposal aims to address include: (i) insufficient mechanisms for regional climate change coordination, (ii) inadequate institutional and legal capacities and frameworks for updating and implementing the NDCs, (iii) MRV and M&E systems that are not consistent with Enhanced Transparency Framework (ETF) requirements under the Paris Agreement, (iv) lack of financial and market-based instruments for the private sector to support the NDCs implementation, (v) lack of private sector portfolio of actions that support the NDCs, and (vi) lack of technical capacities for designing green resilient recovery plans in response to the COVID-19 crisis and coordinating actions with other priorities (NDCs, 2030 Agenda for Sustainable Development).

To address these gaps, the proposal will: (i) support the establishment of regional and national coordination mechanisms for NDC investment and participation; (ii) strengthen the institutional and legal capacity for updating and implementing NDCs, (iii) assess current MRV and M&E systems and provide recommendation to improve reporting at both national and regional levels, (iv) elaborate guidance engagement of the private sector and design market-based and financial instruments to leverage private sector investment, (v) identify private sector actions that support the NDCs, and (vi) elaborate guidance to incorporate relevant complementary SDGs, biodiversity and green recovery goals in the updated NDCs.

UNEP- Regional Office for Latin America and the Caribbean is offering its regional experience and expertise specifically in the areas of climate transparency, NDC support and long-term planning.

Cover date 30 December 2020
Document type Approved readiness proposal
United Nations Environment Programme
Dominican Republic (the)
El Salvador