Guatemala

Guatemala[1] is exceptional in biodiversity compared to other countries and regions: according to Parkswatch and IUCN, it is considered the fifth most biodiverse hotspot in the world. Guatemala ranks first in Central America in terms of ecoregional diversity (7 biomes and 14 ecoregions) and second in the total number of described species. In terms of endemic species, Guatemala ranks first in Central America, with more than 13% of mammal, reptile, amphibian, bird and plant species being endemic.

BIOFIN started in Guatemala in 2014, in its first phase it implemented its methodology, which involved data, statistics, and information on institutions, policies and biodiversity financing, which facilitated the development of the institutional and policy analysis for biodiversity financing (PIR), the analysis of biodiversity expenditure (BER), the assessment of financing needs (FNA), as well as the biodiversity finance plan (BPF), which, together with the institutional demands of the public and private sector, were translated into financial solutions for biodiversity.

The FNA analysis established that, for the period 2016 - 2022 under routine conditions, there would be a financial gap for the implementation of the National Biodiversity Strategy of US$ 7.5 million on average per year, while under optimal conditions it would be US$ 9.5 million on average per year. Based on this analysis, the first financial solutions in Guatemala were presented as a result of the BFP, the Action Plan for the Strategy of Mobilization and Optimization of Resources for Biodiversity in Guatemala, leading to three initial solutions related to increased income for tourist sport fishing; leasing of State-owned land; funds related to the nation's economic development linked to hydrocarbon extraction in protected areas; and the Departmental Development Councils.  

This vision has been complemented in the implementation phase of BIOFIN in Guatemala, starting in 2020, with solutions to strengthen municipal biodiversity management with a results-based budgeting approach, debt-for-nature swaps, updating of fees for biodiversity services, updating of the National Fund for Biodiversity Conservation, design and implementation of sustainable taxonomy in banking, and the creation of the Sustainable, Green, and Climate Finance Directorate.

To date, BIOFIN in Guatemala has mobilized US$2,483,000 for biodiversity financing, mainly through municipal governments, through improved results-based budgeting (US$1.4 million) and the development of projects funded by Development Councils ($1,083,000). In addition, BIOFIN is supporting the Ministry of Finance (MINFIN) in the creation of the Directorate of Environmental Fiscal, Climate Change and Sustainability (Green Investment Office) to facilitate the institutionalization of aspects such as climate and biodiversity finance, results-oriented budgeting, green taxonomy, and debt-for-nature swaps, among others. This office will be integrated into the Ministry of Finance, learning from other examples of BIOFIN's work in Belize and Mexico.

In addition, the update of five municipal tariffs was also delivered in 2024; once approved by the municipal authorities, it is expected to raise US$240,000.00 annually. Furthermore, the Municipal Environmental Public Expenditure Classification Guide (delivered in 2021 with the support of the BIOFIN and PAGE initiatives) was updated and adopted by the Ministry of Finance MINFIN to train all 340 municipalities. This collaboration between BIOFIN and PAGE seeks to strengthen efficiency in municipal financial management. In this updating process, three documents were developed: The updated guide; A practical guide that will serve the training process; and A training guide that indicates the procedures to follow during the training process. This adoption will allow institutionalizing and scaling up the results at the national level of the 10 initial pilot municipalities. 

BIOFIN is currently working with the National Council for Protected Areas to update the national biodiversity strategy and action plan. As part of this process the PIR, BER, FNA, and BFP are being updated. 

In the short term future, the consolidation of the Environmental Taxation Directorate will be supported, and technical advice will also be given to municipalities for the design of policies, methodologies, standards, and procedures for financial administration under environmental aspects that promote the quality of municipal spending (with emphasis on biodiversity and sustainable management of natural resources), and options for accessing green and climate finance will be identified, in support of projects and programmes focused on conservation, protection, and improvement of the environment and biodiversity.  

Read more:  Implementing the Biodiversity Finance Plan in Guatemala | BIOFIN

 Guatemala: Rejuvenating the oceans, for people and planet | BIOFIN