World Environment Day invites us to reflect on the impact our actions have on the planet. It serves as a reminder that protecting the environment and building a sustainable future is a responsibility shared by each and every one of us. With the goal of improving people’s lives and ensuring a sustainable future for generations to come, the IDB Group is supporting countries in adopting measures that address environmental challenges.​

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In the case of Guatemala, the agricultural sector represents 14% of the GDP, generates around 30% of employment, and contributes approximately 60% of the country’s exports. The importance of agriculture to the economy has driven it to become a continuously growing sector. However, challenges such as inequality, entrenched poverty in rural areas, limited access to financing and technology, and insufficient technical knowledge to intensify agricultural production have led to unsustainable growth. This has resulted in increasing deforestation rates and has positioned Guatemala as the second most vulnerable country to climate change in Latin America and the Caribbean (LAC).

In this context, the “Climate-Smart Agricultural Technologies” project was born through a partnership between the Fundación para el Desarrollo Empresarial y Agrícola de Guatemala (FUNDEA)—with over 31 years of experience serving the agricultural sector—IDB Lab, the innovation laboratory of the IDB Group, and the Green Climate Fund (GCF). The main goal is to strengthen farmers’ capacities to adapt to and mitigate climate change by providing access to capital and facilitating mechanisms to scale up the adoption of climate-smart agricultural technologies.

This is being achieved through a blended finance model, which aims to promote the financing of climate-smart technologies. These technologies are typically not funded by commercial banks due to their perceived risk and the need for long-term repayment terms.

Additionally, a solutions model has been developed to optimize water resources using tools such as agricultural-use polymers, rain gauges, infrastructure, and solar-powered irrigation systems. Through the Social Management and Business Development Unit (FUNDEA-UGESDE), farmers receive hands-on support with demonstrations on the use of these agricultural technologies. This effort strengthens the digitization strategy and access to agroclimatic information. Support is also being provided in the design of an environmental and social risk management system, along with a model to measure the economic, social, and environmental impact of the proposed strategies. Furthermore, building farmers’ capacities to face climate change contributes to the creation of green jobs, helping improve local economies in harmony with the environment.

 Currently, the project is being implemented in six regions of Guatemala, and 90% of the beneficiaries belong to one of the 25 Mayan languages and cultures that coexist in the country. Through a line of credit channeled via FUNDEA, around 10,000 farmers are directly benefiting, receiving long-term financing to adopt climate-smart technologies. It is estimated that these farmers will achieve up to a 50% increase in productivity, reduce greenhouse gas (GHG) emissions by 1.2 tons, improve their climate change resilience, and increase their incomes.

This type of initiative shows us how important it is to join forces and work together as a society to build a more prosperous, inclusive, and sustainable world. Let us celebrate this day by reflecting on the need for a collective shift that restores balance to our environment.​