This publication is a product of the project “The Economics of Climate Change in Central America”, coordinated by the Economic Commission for Latin America and the Caribbean (ECLAC) with the Environment Authorities and the Ministries of Finance of Central America, the Central American Commission for Environment and Development The Economics of Climate Change (CCAD/SICA) and the Secretariat for Central American Economic Integration (SIECA). The project has been financed by UKaid of the Department for International Development (DFID) of the government of the United Kingdom. in Central America: Summary 2010 Summary 2010 The Economics of Climate Change in Central America: ECLAC Subregional Headquarters in Mexico Central American Integration System (SICA) 29 President Masaryk Ave., Col. Chapultepec Morales, Central American Commission for Environment and Development (CCAD) Mexico City, Mexico. Tel: +52 55 5263 9600 Fax: +52 55 56 31 11 51 Blvd. Orden de Malta No. 170, Santa Elena Antiguo Cuscatlan, La Libertad, El Salvador For further information please contact [email protected] Tel. (503) 2248-8800 Fax. (503) 2248-8894 [email protected] www.cepal.org.mx/cambioclimatico www.ccad.ws.www.sica.int/ccad www.facebook.com/ccad.sica The Economics of Climate Change in Central America: Summary 2010 Alicia Bárcena Executive Secretary Antonio Prado Deputy Executive Secretary Hugo Beteta Director ECLAC Subregional Headquarters in Mexico Joseluis Samaniego Director Sustainable Development and Human Settlements Division and ECLAC's Focal Point on Climate Change Julie Lennox Focal Point of Climate Change, ECLAC Subregional Headquarters in Mexico This publication was produced under the auspices of an agreement between the United Kingdom Department for International Development (DFID) and the Subregional Headquarters of the Economic Commission for Central America and the Caribbean (ECLAC) in Mexico City, as part of the Project “The Economics of Climate Change in Central America”. The opinions expressed in this document are strictly those of the authors and do not necessarily reflect the views of ECLAC or of the Project’s partner institutions. The boundaries and names that appear in the maps contained in this document do not imply official endorsement or acceptance by the United Nations. The term “dollars” refers to United States dollars, unless otherwise specified. LC/MEX/L.978 Copyright © United Nations, November 2010. All rights reserved. Member States and their governmental institutions may reproduce this work without prior authorization, but are requested to mention the source and inform the United Nations of such reproduction. Cover design: José Luis Lugo. Printing: FOC S.A. de C.V. PROJECT STEERING COMMITTEE RTC Collaborators: Luis Alejandro Alejos, Roberto Extreme Events: Ricardo Zapata, Regional Advisor Araquistain, Beverly D. Castillo, Carlos Fuller, Leslie for Disasters, and Myriam Urzua, Focal point for Ministers of Environment: Marin, Roberto Motta, René López, Carlos J. Pérez, disasters CEPAL Mexico; Elizabeth Mansilla and Juana Argeñal, Minister of Natural Resources Martha Ruiz, José Francisco Rodríguez, Bernardo Horacio Catalán, main consultants; Jaime Olivares, and the Environment of Nicaragua (MARENA); Torres. staff. Implemented with funding from DANIDA. Javier Arias, General Administrator of the National Authority of Environment of Panama PROJECT COORDINATING UNIT Water Resources: Hugo Ventura, supervisor; (ANAM); Rigoberto Cuellar, Minister of Natural (PCU) ECLAC SUBREGIANL Blanca Jiménez, main consultant; María Inés Resources and Environment of Honduras Navarro, Manuel Basterrechea, Katherine Vammen (SERNA); Teófilo De la Torre, Minister of HEADQUARTERS IN MEXICO and Marittin Valentin, consultants. Contributions from Environment, Energy and Telecommunications (ECLAC MEXICO) Horacio Catalán and Pablo Imbach, consultants; of Costa Rica (MINAET); Luis Alberto Ferraté, Julie Lennox; Jaime Olivares, Jenny Alvarado, staff Hugo Beteta, Director; Jorge Máttar, former Director Minister of Environment and Natural Resources and Juan Pablo Vallejo, intern. o.i.c.; Julie Lennox, Project coordinator and Focal of Guatemala (MARN); Herman Rosa Chávez, point for climate change, ECLAC Mexico; Horacio Minister of Environment and Natural Resources Agricultural Sector: Braulio Serna, Chief of the Catalán, Macroeconomist/consultant; Jaime of El Salvador (MARN); Gaspar Vega, Minister Agriculture Development Unit of ECLAC Mexico, Olivares, Research assistant; Almudena Fernández, of Natural Resources and Environment of Belize supervisor; José Mora and Diana Ramírez, staff, Programme consultant; Hortensia Altamirano, (MNREI). Former authorities: Ligia Castro, Juan Luis Ordaz and Gerardo Esquivel, consultants. Secretary; Pedro Cote, Communications officer; Roberto Dobles, Carlos Guerrero, Jorge Susana Levy, Editorial advisor; Ramón Cota, Editor; Rodríguez, Tomás Vaquero. Land Use Change and Ecosystems: Dany Laird, Tanslator. The PCU appreciates the Julie Lennox, supervisor; Pablo Imbach, main support of the Director´s Office and Administration Finance / Treasury Ministers: Edgar Alfredo consultant; Karina Caballero, consultant; and Abigail teams. Balsells, Minister of Public Finance of Guatemala Fallot, Luis Molina, Mario Chacón and Miguel (MINFIN); Dean O. Barrow, Minister of Finance of Cifuentes, CATIE researchers. The Sustainable Development and Human Belize (MOF), Carlos E. Cáceres, Minister of the Settlements Division of ELAC provided Treasury of El Salvador (MH); William Chong Wong, Drought and Degradation: Julie Lennox, advice, particularly: Joseluis Samaniego, Minister of Finance of Honduras (SEFIN); Alberto supervisor; César Morales, main consultant; Matías Director; Luis Miguel Galindo, Regional Advisor José Guevara, Minister of Treasury and Public Credit Renard, George Kerrigan, Rodrigo Alejandro Morera, for the Economics of Climate Change; Carlos de of Nicaragua (MHCP); Fernando Herrero, Minister of Zoraida Aranibar, Ricardo Estupiñán, consultants. Miguel, Economic Affairs Officer; Graciela Treasury of Costa Rica (MH); Alberto Vallarino, Implemented jointly with UNCCD/Global Mechanism. Magrin, Daniel Bouille, Gustavo Nagy, José Minister of Economy and Finance of Panama (MEF). Marengo and Lincoln Muñiz, members of the Former authorities: Jenny Phillips, Rebeca Patricia Biodiversity: Julie Lennox, supervisor; Karina International Panel on Climate Change for the Santos, Guillermo Zúñiga. Caballero, main consultant, with the ECC projects. collaboration of Erika Rojas and Lenin Corrales REGIONAL TECHNICAL of TNC Central America, advisor. COMMITTEE (RTC) DFID/ GOVERNMENT OF THE UNITED KINGDOM Energy: Hugo Ventura, supervisor; Rosa Estela Delegates of the Ministries of Environment: Félix, Fernando Choc, Carlos Roldán and Verónica Gherda Barreto (MARENA); Antonio Cañas (MARN Tom Kennedy, UK Ambassador to Costa Rica Flores, consultants; Jennifer Alvarado, Eugenio El Salvador); Mirza Castro (SERNA); Ana Rita and Nicaragua provided liaison for the project; Rojas and Ana María Larrauri, staff. Chacón (MINAET); Cynthia Deville (ANAM); Carlos formerly Ian Hughes, previous UK Ambassador Mansilla (MARN Guatemala); Marlon Westby to Guatemala, Honduras and El Salvador; Su Economic Valuation: Luis Miguel Galindo and (MNREI). Lin Garbett-Shiels, DFID Officer; Martin Julie Lennox, supervisors; Horacio Catalán, Johnston, former Chief of DFID Office for main consultant; and Jaime Olivares, staff. Delegates of the Ministries of Treasury/ Finance: Central America. Rogelio Alvarado (MEF); Rina Castellanos de Policy Options in Adaptation and Emissions Jarquín (MH El Salvador); Juan Manuel de la Cruz TECHNICAL TEAMS Reduction: Julie Lennox, supervisor with the (MINFIN); Lourdes González (SEFIN); Fernando support of Horacio Catalán; Gabriel Quadrí and Macroeconomic and Demographic Scenarios Rodríguez (MH Costa Rica). Eduardo Vega, main consultants, Jaime without Climate Change: Igor Paunovic, Olivares, staff and IPAT analysis author; Anna former Chief of the Economic Development Unit Central American Commission for Environment Coates, Chief, Matthew Hammill and Lourdes (UDE) of ECLAC in Mexico and Luis Miguel and Development - Central American Integration Colinas staff from the Social Development Unit Galindo, supervisor; Horacio Catalán, main System (CCAD-SICA): Roberto Rodríguez, of ECLAC Mexico; Igor Paunovic, former Chief, consultant, with the collaboration of Allan Coordinator o.i.c. of the CCAD Secretariat and Raúl Ramón Padilla, staff, and Rocío Alvarez, Beltrán, Luis Alberto Sánchez and Jaime Artiga, RTC delegate. consultant from the Economic Development Olivares; and Dirk Jaspers and Giomar Bay Unit; Claudia Schatan, Chief, and Bruno from CELADE. Thanks to Manuel Iraheta, Secretariat of Economic Integration of Antunes, staff, from the International Commerce advisor of the Technical Secretariat of the Central America (SIECA): Yolanda Mayora de and Industry Unit of ECLAC Mexico, and Juan Central American Monetary Council. Gavidia, General Secretary; Juan Sebastián Manuel de la Cruz of the Ministry of Public Blas, RTC delegate. Finance of Guatemala. Climate Scenarios: Fernando Cuevas (R.I.P) and Hugo Ventura o.i.c. the Energy and Natural Former RTC Delegates: Guillermo Barquero, Resources Unit of Subregional ECLAC Cecilia Carranza, Edgar Chamorro, Paul Flowers, Country Research Assistants: Helga María Headquarters in Mexico, supervisors; Carlos Gay, Ramón Frutos, Arístides Hernández, Leonel Lee, Rojas, René Gamero, José Fermin Villatoro, Cecilia Conde,