The Balsas Basin in Mexico is one of the country's most marginalised areas, making it highly vulnerable to climate change. Increasingly erratic rainfall and extended dry seasons are reducing agricultural productivity and degrading natural resources, leading to more frequent flooding, crop damage, and droughts, which further decrease crop yields. Despite considerable efforts by the government, including a strong tradition of payments for ecosystem services (PES) schemes, addressing these climate impacts remains challenging due to financial and institutional constraints. Integrating climate vulnerability systematically into territorial plans remains a key opportunity for improvement.

To address these challenges and take advantage of identified opportunities, this project will transform rural development incentives by emphasising the conservation of forest resources and strengthening of local institutions and capacities. Additionally, it will prioritise bottom-up decision-making and value chain development to ensure social inclusion and empower women, youth, and indigenous peoples.

This approach to climate-resilient production and sustainable land use will improve the livelihood resilience of the most vulnerable rural communities while conserving ecosystems in the Balsas Basin.