The European Union and Honduras sign financing agreement in favor of the forestry sector
Tegucigalpa, March 12, 2024- With the presence, as an honorary witness, of the president of Honduras, Mrs. Xiomara Castro, the director of the European Commission for Latin America and the Caribbean, Mr. Felix Fernández-Shaw, signed a financing agreement of 23.4 million euros for the “VPA and beyond - Forestry Alliance and Green Businesses” program.
DUEHN
Through the Program, actions will be carried out to implement the Forest Alliance between the European Union and Honduras, contribute towards the compliance of the Voluntary Partnership Agreement on Timber Trade (VPA-FLEGT), and promote green businesses. Among other things, this Convention will allow the establishment of a timber traceability system, which will considerably reduce the trade in illegal timber, contribute to the restoration of 1.3 million hectares of forest and promote an environment conducive for the creation and development of small and medium-sized enterprises (SMEs) related to forest-related value chains.
On behalf of the Government of Honduras, the agreement was signed by Minister Luis Soliz, representing the Forest Conservation Institute, who was also accompanied by Vice Chancellor Cindy Rodríguez.
After signing the agreement, Minister Luis Soliz stated “We are very grateful for the support of the European Union, who have been accompanying us from the first moment, allowing us to make sovereign decisions about priorities and interventions in Honduras for the forestry sector to enhance the sustainable contribution of forests towards an inclusive national economic growth and for global efforts to address climate change and biodiversity loss”.
The director of the European Commission for Latin America and the Caribbean, Mr. Félix Fernández-Shaw said: "It is an honor to launch a comprehensive support program and reinforce our joint commitment with Honduras for sustainable development. Healthy forest ecosystems are fundamental for fighting climate change, preserving and restoring biodiversity, and bringing prosperity to communities that depend on forests for their livelihoods. At the European Union we want to help ensure that forests can continue to fulfill all these vital functions".
Forest Alliance
In the coming months, the European Union and Honduras will develop a roadmap for the implementation of the Forest Alliance agreed during the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in Dubai in December 2023.
Various topics will be addressed, such as increasing the area of protected, restored and sustainably managed forests, and reducing the annual rate of deforestation and forest degradation.
Through the actions that will be carried out, within the framework of the Forest Alliance, the execution of Honduras' Nationally Determined Contributions (derived from the Paris Agreement on Climate Change in 2015) will also be supported, focusing on Honduras' objective of restoring 1.3 million hectares of forest and implement the implementation of the country's National Action Plan on Biodiversity.
The Forest Alliance is a contribution to the external dimension of the European Union's Green Deal, supported by the “Global Gateway” initiative, which promotes public and private investments for climate mitigation and resilience.
VPA-FLEGT
In addition to the actions for the implementation of the Forest Alliance, the financing agreement will allow the continuation of the implementation of the commitments acquired by Honduras and the European Union under the Voluntary Partnership Agreement on Forest Law Enforcement, Governance and Trade (VPA-FLEGT). It is planned to implement the execution of the Timber Legality Guarantee System, which occupies a central place in the VPA-FLEGT.
This timber trade agreement was ratified in 2022 to tackle illegal logging and associated trade, with the aim of making timber exported to the EU legally produced.
Green Business
The creation of opportunities to increase the number of decent jobs related to forests, especially in the field of green businesses, will also be a priority within the framework of the actions that will be developed under the financing agreement.
This will be done by enabling an environment for the creation and development of small and medium-sized enterprises (SMEs) related to forest-related value chains. The creation of innovative and modular companies will be promoted, focused mainly on agro-industrial, ecotourism and forestry value chains that will contribute to increasing competitiveness, generating decent employment and, at the same time, reducing the environmental impact on Honduran forests.
Likewise, ways to facilitate trade in legal, deforestation-free and sustainable forest products between Honduras and the EU will be explored.
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More information:
Signing of memorandum of understanding for Forest Alliance between the EU and Honduras
Infographic Forest Alliance with Honduras