ENG - UN CC:Learn

Caribbean
Sea
LATIN AMERICA AND THE CARIBBEAN
NICARAGUA
MDG7
Progress Towards Environmental Sustainability
The Nicaraguan government has launched programmes that aim to integrate
sustainable development principles into the legal framework, in
order to have impact on the population’s everyday life. Despite these
efforts, most of the policies and strategies still need to be aligned and
integrated to improve environmental sustainability.
EL SALVADOR
HONDURAS
NICARAGUA
Matagalpa
León
Managua
Granada
Pacific
Ocean
COSTA RICA
Intensive agriculture, cattle settlement, forest fires and wood extraction have significantly contributed to deforestation.
Moreover, agrochemical pollution and salinization of soils have led to the reduction in water availability.
In 1990, only 45.8% of the total population had access to safe drinking water, whereas in 2001, this percentage increased to 70.5%.
However, around 54% of the population living in rural areas had no access to water. Allocating economic resources towards water
pipe infrastructure is essential in order to achieve MDG target 10 for access to safe drinking water in Nicaragua.
Civil society, NGOs and the private sector have been working together with the government to ensure their interests are addressed
in the national development programme. Limited institutional capacity and lack of economic resources resulted primarily from a
weak legal framework. Nicaragua has therefore developed a legal framework focused on preserving and improving the environment
by ensuring strong linkages between economic development and natural resources management.
QUICK FACTS
CURRENT PORTFOLIO BUDGET
Total UNDP-GEF and Co-Finance: $15,815,115
Total UNDP and Co-Finance: $519,167
Total MPU and Bilateral: $130,000
Total: $16,464,282
Lack of mechanisms ensuring effective programme implementation
has led to more uncontrolled natural resource degradation.
Important regional and national programmes have been launched
to stop this and to promote environmental sustainable development
in Nicaragua. Despite these efforts, the current economic crisis,
the high rates of population living under the poverty line and
political instability have all contributed to stagnation in environmental
sustainability in the country. 1
SPOTLIGHT
National Energy Dialogue Produces Inclusive Policy 2
Heavily dependent on oil as its primary fuel source, energy issues are always critical in Nicaragua. Investment in renewable
energy is minimal, and preliminary studies are needed to foster investment and dialogue among the interested parties.
Nicaragua has also experienced an increase in natural resource degradation, and many poor rural communities lack access to
energy services. Furthermore, limited institutional capacity has restricted the involvement of rural communities and the private
sector in developing environmental projects that contribute to poverty reduction.
UNDP’s Energy Thematic Trust Fund granted US$ 140,000 to a project to promote a national “Energy Dialogue”. During the period
2003-2004, a multi-level council was created to discuss and develop a national energy plan. Government officers, private sector
entrepreneurs, civil society and indigenous groups worked together at roundtable discussions to develop a National Energy
Plan and promote investment mechanisms in the renewable energy sector. The project ensured that all districts were included
in the development of the energy sector, as well as encouraging effective financing mechanisms for environmental projects.
The project supported the studies needed to jump-start the dialogue process in Nicaragua, and discussed studies on environmental
and fiscal barriers to renewable energy.The dialogue also supported various workshops on how renewable energy projects can
take advantage of the CDM to generate revenue through the sale of Certified Emission Reductions, and how to increase carbon
sequestration rates. In addition, the project promoted dialogue between the Energy and Environment Commissions.
ENERGY
Overall, the project successfully established the necessary foundation to allow different groups in the economic development
agenda to voice their interests, and to promote investment towards renewable energy projects. The collaboration between different
entities resulted in a detailed and inclusive National Energy Plan that will positively impact the environment, while promoting
investment mechanisms towards renewable energy resources.
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