Debt for Nature, Carbon Swap Honduras
This week, the National Congress of the Republic of Honduras approved the “Special Law on Forest Carbon Transactions for Climate Justice,” which introduces the possibility of the State engaging in bilateral external debt exchanges.
The primary aim of this law is to create the necessary legal, administrative, financial, and technical framework for a carbon market in Honduras, enabling the country to combat climate change in alignment with the 2015 Paris Agreement and COP21 ratifications.
To oversee the implementation, a technical committee will be formed under the leadership of the Secretary of Natural Resources and Environment, along with the participation of other relevant public institutions, including the Secretary of Finance.
The concept of “debt swap for nature/carbon” entails the voluntary use of a financial mechanism by involved parties to exchange a portion of external debt for initiatives related to the conservation and preservation of natural areas or climate action.
The law establishes a national carbon market based on specific parameters, such as quantifying the amount of carbon dioxide emitted into the atmosphere or the volume of greenhouse gases that have been reduced, sequestered, or avoided.
? ???????? | Congreso Nacional aprobó la ??? ???????? ?? ??? ????????????? ?? ??????? ???? ?? ???????? ??????????, que tiene como objetivo regular las relaciones administrativas, legales y comunitarias que se… pic.twitter.com/ltDWnDRZR4
— Congreso Nacional de Honduras (@Congreso_HND) July 27, 2023
The Special Law on Carbon Transactions for Climate Justice was approved by the People’s Congress in its third debate on Wednesday night, receiving support from all political parties. The law acknowledges the State as the rightful owner of goods, patrimony, and natural resources.
As part of the legislation, a fund will be established for carbon transactions, and it will be managed by Protected Areas and Wildlife. The resources from this fund will be invested in national forests, aiding in the capture of carbon dioxide, which over time will transform into forest mass.
To ensure compliance with greenhouse gas reduction goals, to which over 196 countries, including Honduras, committed themselves at COP21, a Committee will be responsible for overseeing the progress.
The initiative for this law was introduced by President of Honduras’ Congress, Luis Redondo, and received favorable ruling from the Environment and Climate Change Commission, chaired by Congressman Ariel Montoya from Atlántida de Libertad y Refundación (Libre).
The main objective of this law is to establish a legal framework and provide administrative, technical, and financial conditions for the utilization and distribution of environmental, social, and economic benefits resulting from sustainable management of forest carbon sinks. Its guiding principles are centered around Climate Justice, sustainability, equity, participation, and transparency.
??? | “Quiero felicitar al presidente @Lredondo, a la junta directiva y a todos los congresistas, por apoyar este proyecto que hoy se transforma en una realidad y así reconstruir la Honduras que merecemos, la de la Refundación, la Honduras verde, sana y saludable”.… pic.twitter.com/Oh58zZ7ZgB
— Congreso Nacional de Honduras (@Congreso_HND) July 27, 2023
Carbon Credit
The proposal of carbon credits serves as an international mechanism to mitigate carbon dioxide (CO2) emissions.
The law, which received approval from the People’s Congress, grants Honduras the authority to engage in carbon transactions with both domestic and foreign entities, organizations, and companies.
These carbon transactions include the Debt for Nature/Carbon Swap, the National Carbon Market, and the Payment for Performance.
Each of these avenues enables various approaches to address carbon emissions and environmental conservation.
Inviting Congress to Join in the Work
Lucky Medina, Secretario de Estado of the Secretaría de Recursos Naturales y Ambiente, @sernaHN, Honduras, had this to say about the new law in his address to Congress:
“Doing it from the perspective of climate justice is thinking about the future generations. It is to recognize the broad ecosystemic values that this country has. But it is also a reminder of how highly vulnerable we are to the effects of climate change.
It is unfair that a country that pollutes so little is doomed to suffer so much. The possibility of what this law enables, which are totally non-reimbursable funds that represent an immediate benefit transaction to reinvest in the restoration of forests, in the reduction of vulnerability, in the generation of green employment will also curb immigration, reduce poverty and decrease inequality; it is also a commitment to future generations.
Thank you, President Redondo, for presenting this project with the clarity and precision of President Xiomara Castro. And from our colleagues in the Environmental Cabinet….to all the Congress-members: In the 18 departments of the country, we have protected areas. And also, in the same departments we have many areas pending restoration.
We invite the 256 congressmen to join these tasks. Our doors at the Secretary of Natural Resources and Environment are open to all of you, to join us in volunteer activities. Let’s rescue the lakes, the mangroves, let’s stop the pollution that comes from the Motagua River, let’s continue with the reforestation activities.
Let’s take advantage of this rainy season so that with our hands we engage in these restoration processes with dignity. And let’s keep the vanguard of this country that has a firm commitment to climate justice. Let’s turn this country into a great country in harmony with nature.”
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