In 2023, the relative internal productivity of the Agriculture sector in Latin America and the Caribbean was 44 (with total productivity coefficient = 100), showing its lag compared to sectors with higher productivity, according to the sectoral graph of the report (ECLAC, 2025).

Formal workers earned 4.4, 2.5 and 2.4 times more than informal workers in El Salvador, Honduras and Peru (OECD, 2024).

73.9% of people lived in totally informal households in Honduras (OECD, 2024).

This initiative is a Specific Investment Loan operation (HO-L1259) in Honduras, to be executed by ICF, aimed at conserving and restoring forest cover and associated ecosystem services in prioritized areas. Its overall objective is to conserve and restore forest cover, with specific objectives to: (i) increase adoption of forest and agroforestry practices (AFS/SPS) that expand forest cover, (ii) diversify livelihoods in community forestry, and (iii) strengthen ICF’s institutional capacity for forest conservation and management. The project targets selected municipalities in Olancho, Yoro, Atlántida, Colón and El Paraíso, prioritized through environmental and social criteria related to restoration, hydrology and climate vulnerability, among others. The components include: (I) implementation of agroforestry and silvopastoral systems through technical assistance and technology packages, (II) community forest management via business plans, integrated technical assistance and knowledge exchanges, and (III) institutional strengthening of ICF (forest registry/monitoring, wildfire risk prevention/management, regulatory updates, and land tenure-related aspects). Total financing is US$25 million (60% regular and 40% concessional ordinary capital), with Category B environmental and social classification and Substantial E&S risk, supported by required E&S management instruments (ESA/ESMP/SEP) and applicable Environmental and Social Performance Standards.

This initiative is a Technical Cooperation (HO-T1489) in Honduras aimed at contributing to the evidence base on the environmental and social effects associated with forest restoration projects. It addresses gaps in empirical evidence on effectiveness and impacts on ecosystem services (water infiltration/availability, soil erosion, carbon capture, biodiversity) and on social outcomes and rural household well-being, incorporating gender and indigenous peoples considerations. It proposes a dual approach: a retrospective analysis using data from past projects and a prospective approach in a project starting implementation, collecting baseline data for a future evaluation using quasi-experimental methods (e.g., difference-in-differences). It also finances capacity building for the design, monitoring, and evaluation of forest projects through consultancies, workshops, and events, strengthening evaluability and theories of change. The IDB will execute the TC in close coordination with the Forest Conservation Institute (ICF) and at the request of SEFIN, under the Bank’s TC and procurement policies and procedures.

This initiative is a complementary non-reimbursable investment financing (IGR) to an already approved “Project,” focused exclusively on the Lake Yojoa basin in Honduras. It aims to contribute to resilient, low-carbon, and inclusive development through two specific objectives: promoting the adoption of climate-smart and/or agroecological technologies and practices by MSMEs, and promoting forest cover and/or soil restoration technologies or practices by key local actors. Operationally, it provides comprehensive technical assistance and direct in-kind non-reimbursable support to implement business plans for MSMEs and forest cover/soil restoration plans using nature-based solutions. The intervention prioritizes specific micro-watersheds (Varsovia, Yure, La Pita, Quebradona, and Lake Yojoa) and foresees expanding coverage by incorporating additional micro-watersheds if needed and resources allow. With an inclusion focus, it plans actions to identify and support women-led MSMEs (target: 25%) and culturally relevant approaches for indigenous peoples, while helping reduce deforestation pressures and unsustainable productive practices affecting water, biodiversity, and livelihoods.

The Agua de Honduras platform is an innovative initiative that provides reliable information on water resources in a quick and free manner. This platform combines scientific methods, digital technology, and public information on hydrographic boundaries, climate, soils, vegetation cover, and detection of vegetation loss, water demand and quality, flooding, and hydrology to facilitate decision-making on water resource management in micro-basins, sub-basins, and basins. This initiative currently covers the departments of Ocotepeque, Copán, Santa Bárbara, Cortés, Comayagua, Lempira, Intibucá, La Paz, Valle, Choluteca, and partially Francisco Morazán, El Paraíso, Yoro, and Atlántida.

ENACCSA is structured around four strategic pillars and contains strategic objectives aimed at strengthening institutional frameworks and human capacities, coordinating actions for prevention and recovery in the event of extreme events, improving technical and financial capacities to implement adaptation measures, and promoting coordination and partnerships for technological innovation and access to agroclimatic information and knowledge management.

The Honduran State Policy for the Agri-Food Sector (PESAH) 2023-2043 seeks to promote economic, social, and environmental improvement in a sustainable and inclusive manner. The policy reflects the reality and aspirations of producers in Honduras's main sectors, with contributions from actors in the public and private sectors and civil society linked to the agri-food sector. Its formulation comes at a time of global transition as a result of the post-COVID-19 pandemic, the war between Russia and Ukraine, climate change, and rising prices for inputs, services, and technology. This moment coincides with global technological advances and widespread poverty affecting small producers.

This initiative is a Specific Investment Loan operation (HO-L1259) in Honduras, to be executed by ICF, aimed at conserving and restoring forest cover and associated ecosystem services in prioritized areas. Its overall objective is to conserve and restore forest cover, with specific objectives to: (i) increase adoption of forest and agroforestry practices (AFS/SPS) that expand forest cover, (ii) diversify livelihoods in community forestry, and (iii) strengthen ICF’s institutional capacity for forest conservation and management. The project targets selected municipalities in Olancho, Yoro, Atlántida, Colón and El Paraíso, prioritized through environmental and social criteria related to restoration, hydrology and climate vulnerability, among others. The components include: (I) implementation of agroforestry and silvopastoral systems through technical assistance and technology packages, (II) community forest management via business plans, integrated technical assistance and knowledge exchanges, and (III) institutional strengthening of ICF (forest registry/monitoring, wildfire risk prevention/management, regulatory updates, and land tenure-related aspects). Total financing is US$25 million (60% regular and 40% concessional ordinary capital), with Category B environmental and social classification and Substantial E&S risk, supported by required E&S management instruments (ESA/ESMP/SEP) and applicable Environmental and Social Performance Standards.

The project develops and validates methodologies to quantify greenhouse gas (GHG) emissions in dual-purpose livestock systems in Costa Rica, Honduras, Nicaragua, and Panama, combining indirect analyses based on IPCC (2006) guidelines with experimental studies in pastures and direct measurements of enteric methane. By classifying farms according to their level of intensification, the initiative assesses CO₂, CH₄, and N₂O emissions, their relationship with productivity, and key economic factors, demonstrating that farms with improved forage management and supplementation generate lower emissions per unit of product. In addition to producing local emission factors and more accurate Tier 2 calculation tools, the project strengthens producer capacities through training activities, promoting sustainable and competitive livestock systems with low GHG emissions.

The NAMA for a Low Carbon and Climate Resilient Livestock Sector in Honduras seeks to reduce greenhouse gas emissions from the livestock sector through sustainable practices that increase farm productivity and resilience. Silvopastoral systems, biodigesters, organic fertilizers and nutritional blocks will be implemented to improve livestock management and reduce deforestation. This initiative aligns with national development plans, contributing to goals of poverty reduction, job creation, ecological restoration and climate mitigation. The goal is to transform the livestock sector into a net carbon sink, with positive social, environmental and economic impacts. Implementation considers two reduction scenarios, aiming for conversion of 20% or 30% of current practices to sustainable practices.