El Salvador Implements Credit Incentive for Ecosystem Restoration on Coffee Farms

The United Nations Environment Program, the Ministry of Environment and Natural Resources (MARN) and the Environmental Investment Fund of El Salvador (FIAES) are implementing the Incentives for a Green Economy project. As a result of its political and strategic impact, the national program of environmental incentives and disincentives was formalized in response to the national environmental policy of the Government of El Salvador.

Within the framework of this project, a package of three economic and financial incentives was designed to support the process of restoring the country's ecosystems and productive landscapes: Credit Incentive, Management Incentives and Incentives for Payment for Environmental Services, which is being implemented in a pilot phase since June 2022. 

The credit incentive is implemented in support of the Green Protocol of the Public Financial System, within a partnership between the Banco Hipotecario de El Salvador (BH), MARN and FIAES, which combine technical and financial capacity to coffee producers who have an active loan with the BH and are also interested in carrying out soil and water restoration actions in their coffee forest ecosystems. 

This pilot project cooperates with five farms located in the municipality of Apaneca, department of Ahuachapán, through the implementation of a Coffee Agroforestry System, which includes lower than conventional interest rates, provides guaranteed funds, and provides specialized technical assistance and inputs to incorporate agro-environmental techniques. > More information