EL SALVADOR

1. Recent trends

Poverty in El Salvador has decreased from 40.4% in 2016 to 30.7% in 2020, although it remained above the Latin America and the Caribbean (LAC) average of 26.3%. Extreme poverty also decreased in that period from 10.7% to 8.3%, below the LAC average (8.7%). The population living in completely informal households was 54.4% in 2018, above the LAC average (36.3%). Regarding environmental indicators, in 2019, greenhouse gas (GHG) emissions per capita were 2.0 tonnes of carbon dioxide equivalent (t CO2e), lower than the averages for LAC (6.3) and countries belonging to the Organisation for Economic Co operation and Development (OECD) (9.1). That year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 99.9%, higher than 95.4% for LAC and 61.0% for the OECD. The marine protected area of El Salvador accounted for just 0.7% of its territorial waters in 2021, compared to 7.3% for LAC and 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 0.5% of GDP in 2020, below LAC (1.0%) and the OECD (2.1%). Total tax revenue as a percentage of GDP in 2020 was 21.9%, on par with the LAC average (21.9%), but below the OECD average (33.5%).

2. Long term development policies for a green transition

The impacts of climate change are already severely affecting El Salvador’s livelihoods and economy. As a policy response, the National Climate Change Plan (2022 26) went through public consultation in 2022 and will serve as a strategic reference tool for public administration measures. In addition, the National Energy Policy 2020 2050 defines long term strategic objectives for El Salvador’s energy system, including the development of renewable energy sources to reduce dependence on imported fossil fuels.

Regarding mitigation, El Salvador is developing a Long Term Climate Strategy (ED 2050), with support from EUROCLIMA+ and the International and Ibero American Foundation for Administration and Public Policy of Spain. El Salvador participates in the Advancing a Regional Approach to e mobility in Latin America initiative of the United Nations Environment Programme (UNEP) and the Green Climate Fund (GCF). Adaptation plays a crucial role in El Salvador. A project to elaborate a National Adaptation Plan, with support from the UNEP and the GCF, is expected to be launched before the end of 2022. Two large regional adaptation projects are currently underway. Project RECLIMA applies an integrated landscape approach in the country’s dry corridor area, with support from the GCF and the Food and Agriculture Organization (FAO). To enhance the climate resilience of rural communities and ecosystems in the Ahuachapán Sur region, El Salvador promotes forest landscape restoration, productive alternatives and the production of climate and hydrological information, with support from the United Nations Adaptation Fund and the United Nations Development Programme (UNDP).

El Salvador’s international partnerships largely focus on environmental conservation and restoration. Within LAC, El Salvador co operates with Costa Rica, Guatemala, Honduras, Nicaragua and Panama to promote ecosystem based adaptation technologies in the Central American Dry Corridor, supported by the Central American Commission for Environment and Development, UNEP and the FAO. Beyond LAC, El Salvador is currently working with the Global Environment Facility (GEF) on the sustainable urban development of the San Salvador metropolitan area, supported by the UNDP (2019), and on integrated landscape management and restoration of land in the El Imposible Barra de Santiago conservation area, supported by the World Bank (2021). Ecosystems in degraded areas of the Complejo Jaltepeque are restored, with financial support from the European Union and Germany (2021).

Regarding green finance, El Salvador established the Mesa de Financiamiento Climático for the implementation of a financial strategy to mobilise and track public and private funding for sectoral implementation plans to achieve its nationally determined contributions (NDCs). To reverse its high degree of environmental degradation, mainly due to agricultural activities and fires, El Salvador established a National REDD+ (Reducing Emissions from Deforestation and Forest Degradation) Strategy to access funding for the restoration of ecosystems and landscapes.

Note: See the Reader’s Guide for definitions and sources.

Key indicators – El Salvador

Guatemala

1. Recent trends

In 2019, total greenhouse gas (GHG) emissions per capita in Guatemala were 2.1 tonnes of carbon dioxide equivalent (t CO2e), lower than the averages for Latin America and the Caribbean (LAC) (6.3) and countries belonging to the Organisation for Economic Co operation and Development (OECD) (9.1). That same year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 100%, higher than 95.4% for LAC and 61.0% for the OECD. The marine protected area of Guatemala accounted for 0.8% of its territorial waters in 2021, compared to 7.3% for LAC and 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 0.8% of gross domestic product (GDP) in 2020, below the averages for LAC (1.0%) and the OECD (2.1%). Total tax revenue as a percentage of GDP (12.4%) in 2020 remained lower than the averages for LAC (21.9%) and the OECD (33.5%).

2. Long term development policies for a green transition

Guatemala is among the ten countries most vulnerable to climate change in the world. Guatemala’s policy response is backed by the National Development Policy 2032 (2015), the K’atun National Development Plan 2032 (2014) and the National Action Plan for Climate Change (2016), which set mitigation and adaptation objectives in environmental conservation, water resources, agriculture, spatial planning, solid waste, coastal marine systems and energy. Since 2009, Guatemala has a National Climate Change Policy in place. Also noteworthy, the Legislative Decree 7 2013 established a law to regulate the reduction of vulnerability, adaptation to climate change and mitigation of GHGs, being one of the first environmental laws to be approved in LAC. Later, the National Environmental Education Policy (2017), was created to strengthen responsibility for the environment.

Among Guatemala’s mitigation efforts, the National Development Strategy with Low GHG Emissions (2018) promotes an efficient socio economic model that decouples economic growth from increasing emission levels. The National Strategy for Sustainable Cattle Ranching (2018) regulates the sector’s GHG emissions and prevents vulnerabilities. Regarding industry and services, Guatemala adopted a National Cleaner Production Policy (2010), which creates incentives, regulation, and simpler administrative procedures. The Energy Policy 2013 2027 aims to make use of Guatemala’s great potential for renewable energy production but also promotes the exploration and exploitation of oil reserves. Guatemala has a System of Protected Areas, composed of 348 territories, that aims to conserve ecosystems and biodiversity, and is continuously monitored. Concerning adaptation, Guatemala developed a National Adaptation Plan (2018) for priority sectors, such as agriculture, water and sanitation, coastal zone management, and forestry. The National Action Plan for Climate Change has an adaptation strategy prioritising six sectors: health, marine and coastal areas, agriculture and food safety, forests and protected areas, infrastructure, and integrated water resource management. Guatemala also launched a project to promote policies for ecosystem based adaptation practices in agricultural production and forestry. Guatemala’s efforts to work with the private sector to strengthen climate resilience were recently analysed by the OECD, which noted promising approaches such as the provision of information, technologies and capacity building but also called for much stronger co operation.

Guatemala’s international partnerships emphasise environmental conservation. Within LAC, Guatemala promotes ecosystem based adaptation technologies in the Central American Dry Corridor, in co operation with Costa Rica, El Salvador, Honduras, Nicaragua and Panama. It also created a risk sharing facility for small agricultural enterprises, with Mexico, the Green Climate Fund (GCF) and the Inter American Development Bank (IDB). Beyond LAC, the ADAPTE project (2013), with the German Agency for International Cooperation (GIZ), supports climate change adaptation and rural development. Guatemala co operates with the GCF on climate resilient adaptation (project RELIVE) and watershed management. It also partners with the Rainforest Alliance and the GCF on risks mapping and strategic adaptation planning.

Regarding green finance, Guatemala developed the Action Plan of its National REDD+ (Reducing Emissions from Deforestation and Forest Degradation) Strategy (2020 50) to access funds from the Forest Carbon Partnership Facility and other sources for actions to reduce of GHG emissions. It also signed an Emissions Reductions Payment Agreement with the World Bank in 2021 to address deforestation and degradation and strengthen the management of protected areas, agroforestry systems and forest plantations.

Note: See the Reader’s Guide for definitions and sources.

Key indicators – Guatemala

12 https://stat.link/z2uxct

Mexico

1. Recent trends

Poverty in Mexico remained largely unchanged, at 37.4% in 2020, compared to 37.6% in 2016, above the Latin America and the Caribbean (LAC) average of 26.3%. Extreme poverty in that period rose from 8.4% to 9.2%, partly owing to the impact of the COVID 19 pandemic, above the LAC average (8.7%). The population living in completely informal households decreased from 41.6% in 2010 to 37.0% in 2018, in line with the LAC average of 36.3% in 2018. Regarding environmental indicators, in 2019, greenhouse gas (GHG) emissions per capita were 5.1 tonnes of carbon dioxide equivalent (t CO2e), lower than the averages for LAC (6.3) and countries belonging to the Organisation for Economic Co operation and Development (OECD) (9.1). That year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/m3) was 99.5%, higher than 95.4% for LAC and 61.0% for the OECD. The marine protected area of Mexico accounted for 21.6% of its territorial waters in 2021, substantially higher than 7.3% for LAC and above 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 1.4% of gross domestic product (GDP) in 2020, above LAC (1.0%) but below the OECD (2.1%). Total tax revenue as a percentage of GDP (17.9%) remains lower than the averages for LAC (21.9%) and the OECD (33.5%).

2. Long term development policies for a green transition

Mexico hosts 10 12% of the world’s biodiversity and is geographically vulnerable to climate change risks. Climate change mitigation and adaptation were declared a public interest as early as 1988 (General Law of Ecological Equilibrium and Environmental Protection). In 2020, the Natural Resources Sectoral Programme 2020 2024 was launched. Mexico intends to submit improved 2030 NDC targets before the United Nations Climate Change Conference (COP27).

For its mitigation efforts, Mexico has published a Special Climate Change Program 2021 2024, which focuses on enhanced synergies with adaptation actions to generate environmental, social, and economic benefits. The National Development Plan 2019 2024 promotes sustainable development through inclusion of population and communities to produce energy from renewable sources. Current priorities are hydroelectric, solar and wind energy. Concerning carbon sinks, the General Law for Sustainable Forest Development and the National Forestry Program 2020 2024 promote sustainable forestry management, while the National Biodiversity Strategy of Mexico and the Action Plan 2016 2030 promotes biodiversity conservation. In 2019, Mexico launched the Sembrando Vida reforestation programme, which pays 420 000 farmers to plant trees.

Regarding adaptation, Mexico has focused its activities, through the Special Climate Change Program 2021 2024, on maintaining environmental services, reducing vulnerability to climate change, and increasing resilience of the communities. Regarding agriculture, Mexico published a Sectoral Programme for Agriculture and Rural Development 2019 2024, which resulted in 3 special and 11 institutional programmes, on fisheries and aquaculture, sugarcane, and national food security. The ADAPTUR project supports the adaptation of the tourism sector, with support from the German International Development Agency (GIZ). To monitor risks and adaptation progress, Mexico developed a National Environment and Natural Resource Information System, a National Risks Atlas, a National Atlas of Vulnerability to Climate Change, a National Program of Hydraulic Contingencies, and a National Water Program 2020 2024.

In its international partnerships, Mexico emphasises natural environmental conservation, agriculture, and energy. Within LAC, Mexico is fostering collaboration with Belize, Guatemala and GIZ to conserve the shared tropical forest region. Beyond LAC, Mexico collaborates on projects for adaptation technologies (2021) and adaptive river restoration (2021), with support from the Green Climate Fund (GCF). It is also creating a risk sharing facility for agricultural businesses (2019) with the Inter American Development Bank (IDB). Moreover, Mexico formed a policy oriented Climate Change Alliance (2017) and an Energy Partnership (2017) both with Germany.

Regarding green finance, the Green Finance Advisory Council (2016) promotes a sustainable financial market. Exemplary results are Mexico’s Green Bond Principles and several investor statements. The initiation of a national GHG emissions market was required by law in 2018, and an emissions trading scheme will be launched in 2023. Mexico also co operates with the United States Agency for International Development (USAID) in the creation of carbon credits.

Note: See the Reader’s Guide for definitions and sources.

Key indicators – Mexico

12 https://stat.link/5w0719