Incorporating Climate Change into the Strategy of SBD

The Development Banking System (SBD), a second-tier financial entity of the Costa Rican state, has the mandate to provide financing for vulnerable individuals in rural Costa Rica at favorable rates, particularly focusing on women and youth. Though there are existing institutional policies and strategies at national and territorial levels, there are large gaps in integrating climate change adaptation as an investment priority for financial entities. 

Until recently, climate change and the concepts of climate resilience and ecosystem-based adaptation (EbA) have been largely absent from the agenda of SBD. However, by providing training and capacity-building on these topics, the SBD can now pave the way for the development of innovative financial products and the enhancement of existing ones. 

Additionally, developing monitoring and evaluation systems for financial products helps measure the impact of adaptation measures integrated into local enterprises' business models. This strengthens transparency and builds trust among the financial sector, beneficiaries, decision-makers, and international financiers.

• Strong regulatory framework and public policies that incorporate climate change adaptation into national and territorial development strategy.

• Clear political commitment and alignment with the national climate agenda.

• Active institutions mandated to provide financial resources for rural ventures.

• Flexibility to modify existing financial instruments to include adaptation criteria.

• Strong institutional capability to collect, evaluate, and strategically use monitoring data

• Building an enabling institutional framework for financing adaptation measures requires time and inter-institutional commitment. A staged approach with concrete steps allows for orderly progress and helps identify areas for improvement when scaling.

• Developing or adapting effective financial products requires close coordination and active consultation between the financial sector and potential clients. 

• Integrating adaptation criteria into financial products needs a broad conceptual framework that encompasses both gray and green adaptation measures. The availability and channeling of international funds at competitive rates helps facilitate the financing of climate-resilient financial products. 

Adaptation Measures in Sarapiqui
Incorporating Climate Change into the Strategy of SBD
Seed capital for climate-resilient business ideas (Non-repayable short-term financing)
Coaching program for integrating EbA and climate resilience into business models during application stage
Integrating EbA into the strategic planning process of the biological corridor

A strategic and participatory planning process is conducted with the Local Committee to integrate Ecosystem-based Adaptation (EbA) into management tools. This process includes working sessions, workshops, and technical advice aimed at enhancing self-reflection among committee members about their actions within the territory. 

In this context, incorporating a climate perspective into the strategic planning of a biological corridor means analyzing and redefining the mission and vision to focus on climate change responses. This involves recognizing the vulnerabilities and threats in the territory, as well as their implications for the most vulnerable groups and sectors. The goal is to establish targeted, sustained actions that positively affect the lives of individuals and communities while ensuring ecological connectivity and the provision of ecosystem services in line with productive and sustainable development in the region.

DECREE 33106-MINAE establishes the role of Local Committees within the framework of the National Biological Corridors Program. These committees must have a management plan to enhance the channeling of resources and technical assistance to support their establishment. The diverse participation of stakeholders present in the territory allows for a broad perspective on the needs of groups and sectors, the expansion of the stakeholders involved, and the identification of opportunities for establishing partnerships for the effectiveness of EbA planning and upscaling.

Planning must be contextualized within the current organizational capacities of the Local Corridor Committee. A starting point for strategic planning answers the question: What does a Biological Corridor do? It allows us to define its substantive functions as a platform for citizen participation that guides its present and future actions: it trains, raises awareness, communicates, articulates stakeholders, has political influence, fosters citizen participation, and manages projects. The integration of a climate perspective contextualizes a Management Plan consistent with its current organizational capacities to enhance actions that impact the quality of life for people and communities. It includes the integration of Climate Change, EbA, and Gender as strategic axes in the management of EbA projects with a gender perspective for financial sustainability.

Enhancing skills and knowledge to effectively implement and expand Ecosystem-based Adaptation (EbA) measures

With the results from the organizational development analysis , a contextualized capacity development program is created and implemented for each biological corridor according to its strengthening needs. This program is carried out through workshops, seminars, coaching sessions, peer-to-peer exchanges, etc. 

The commitment and interest of local committees and their members to actively participate in strengthening competencies and skills is an important enabling factor. This requires the capacity for self-reflection and self-criticism of organizational processes and their own participation. Linking the strengthening process to existing climate change adaptation strategies and initiatives at the local and national levels allows for a sustained process aligned with a broader strategy, which was an important step supported by the other building blocks. Aditionally, matching up with funding sources that accept project proposals with an EbA approach contribute to the success.

- Link training and capacity building needs within the framework of the biological corridor's strategic planning. 

- Develop on-site capacity building spaces and schedule them according to the participants' agendas. This is especially important to enhance the participation of women and youth.

-EbA project proposals should link cross-cutting themes such as gender, youth, and interculturality to enhance funding opportunities and the scope of actions

Using organizational development methods on Local Committees

The analysis of the organizational capacities of biological corridors as multisectoral governance mechanisms allows for the identification of opportunities for improvement and strengthening needs to enhance the scaling-up of EbA. Existing competencies and capacities in technical and soft skills are assessed to facilitate multi-stakeholder dialogue, raise awareness, train and negotiate with decision-makers, conduct political advocacy, and establish alliances. Internally, organizational processes are analyzed to identify and prioritize gaps and bottlenecks in project management and financial sustainability.

An already existing governance structure needs to be in place, and its members should have an agreement on dedicating time to the upcoming process. Also, the process sould be facilitated by an expert in organisational development who selects adequate methods, prepares working sessions and guides the group.

The main capacity-building measures identified were in strategic communication, negotiation with key stakeholders, project management, and access to financial resources. These are highly efficient soft skills that are usually overlooked or underrated.

Shifting the role of local committees in biological corridors to a comprehensive approach

Biological corridors play a crucial role in promoting dialogue and participation among multiple stakeholders. Until now, their main focus has been on conservation activities. However, they have significant potential for scaling up Ecosystem-based Adaptation (EbA). They are integrated into the national strategy for the conservation and sustainable use of biodiversity. This strategy is supported by a Local Committee, which serves as a forum for consultation and collaborative sustainability initiatives. This committee comprises civil society organizations (CSOs), non-governmental organizations (NGOs), government institutions, and municipalities.
To maximize the effectiveness of biological corridors in scaling up EbA measures, it is essential to establish a shared understanding and agreement among stakeholders regarding their role. This involves making explicit the role of biological corridors - and each stakeholder who participates - in sustainability and climate change adaptation strategies, but also also their specific contribution to social and economic local development. The road to this common understanding requires analyzing sectorial vulnerabilities, needs, and interests, but also oportunities, competencies and capacities with potencial to tackle common issues. In addition, clarifying basic concepts of climate change, adaptation, biodiversity conservation (EbA) with a people-centered approach, using sectorial specific language and active stakeholder participation, is key for reaching a common understanding.

Integration into National Policy Frameworks
Biological corridors are part of Costa Rica’s national conservation strategy, created through executive decree, mandating cross-sectoral cooperation in the public interest.

There is also alignment with the National Adaptation Plan of Costa Rics (Strategy #3), which promotes ecosystem-based adaptation (EbA) through sustainable ecosystem management.
 

Multistakeholder Governance and Participation

An important enabling factor is the existence of a Local Committee as a formal consultative and collaborative platform comprising civil society, NGOs, government institutions, and municipalities. There is also active stakeholder participation across sectors which is central to dialogue and implementation.

Biological corridors should be understood as living organizations focused on citizen participation, with their own internal dynamics and operational and administrative processes. To channel efforts toward the efficient scaling of EbA measures, they need to create an identity, cohesion, and internal culture that allow them to address common challenges and opportunities. Applying the "climate lens" means going beyond management approaches focused strictly on conservation, instead focusing the analysis of potential impacts of sustainability actions on the quality of life of communities and individuals, especially vulnerable populations. 

Braulio Carrillo National Park
Shifting the role of local committees in biological corridors to a comprehensive approach
Using organizational development methods on Local Committees
Enhancing skills and knowledge to effectively implement and expand Ecosystem-based Adaptation (EbA) measures
Integrating EbA into the strategic planning process of the biological corridor
Braulio Carrillo National Park
Shifting the role of local committees in biological corridors to a comprehensive approach
Using organizational development methods on Local Committees
Enhancing skills and knowledge to effectively implement and expand Ecosystem-based Adaptation (EbA) measures
Integrating EbA into the strategic planning process of the biological corridor
Policy Alignment with PINPEP and PROBOSQUE for Smallholder Incentives

To promote sustainability and incentivize adoption of restoration practices, the project aligned its interventions with Guatemala’s national forestry incentive schemes—PINPEP (targeting smallholders) and PROBOSQUE (supporting forest management and agroforestry). This approach answered “what” (financial support available for conservation), “why” (incentives reduce the cost barrier for farmers), and “how” (linking project actions with formal application support). Farmers engaged in agroforestry, reforestation, or conservation activities were guided through the process of registering for these programs, ensuring long-term continuity and co-financing. This institutional alignment also ensured that restoration efforts complied with national environmental priorities.

A strong policy framework, INAB collaboration, farmer interest in incentives, and field staff supporting application processes enabled smooth integration. National recognition of smallholder needs and pre-existing program budgets were also essential.

While alignment with national programs strengthened sustainability, bureaucracy and paperwork were hurdles for farmers. Simplifying the application process and building farmers’ confidence in engaging with institutions proved essential. Having local facilitators familiar with both community dynamics and institutional procedures was key to success.

Ecosystem Service Modelling with InVEST for Landscape Planning

To understand how different land uses affect ecosystem functions, the project applied InVEST modelling tools to map and quantify carbon storage, sediment retention, and habitat quality in three micro-watersheds. This allowed the project team and local stakeholders to see the “what” (the ecological state of the landscape), “why” (which land uses provided more benefits), and “how” (where interventions were needed). For instance, forest and shrubland areas were found to store significantly more carbon and reduce erosion compared to basic grain croplands. This modelling helped prioritize areas for restoration and agroforestry. The visual outputs and metrics supported evidence-based discussions with communities and decision-makers, integrating ecological science into watershed-level planning.

Successful application of InVEST required spatial land-use data, GIS expertise, ecological knowledge, and collaboration with institutions like MAGA and INAB. Buy-in from communities and stakeholders who valued data-informed decision-making also enabled adoption.

Making ecosystem functions visible through maps helped bridge knowledge gaps and build trust. However, technical complexity required training and translation into accessible formats. Some areas lacked detailed data, so local observations were essential for model validation. Combining modelling with participatory methods made the findings more relevant and actionable.