Complementary non-reimbursable investment financing for resilience and nature-based solutions in the Lake Yojoa basin (Honduras)

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.