Forestry Incentives Strengthen the National Economy

The National Forest Institute supports projects for more than USD 38 million.

by Pamela Contreras

Guatemala City, by Brenda Larios -AGN-. The National Forestry Institute -INAB-, coordinated with the Ministry of Public Finance -Minfin- completed the seventh disbursement of the 2023 Pinpep and Probosque forestry incentive program this week.

The support benefited several Guatemalans through establishing, maintaining, and sustaining the 2,871 projects, equivalent to 49,917 acres.

The total amount injected into the local economy is USD 5,741 million.

The Disbursement

The disbursement fulfills Legislative Decree 51-2010 Law of Incentives for Holders of Small Areas of Land with Forestry or Agroforestry Use -Pinpep-, as well as Legislative Decree 2-2015 Law to Promote the Establishment, Recovery, Restoration, Management, Production, and Protection of Forests in Guatemala -Probosque-.

The departments with the most projects paid for with this last disbursement were:

  • Petén
  • Huehuetenango
  • Quiché
  • Alta Verapaz

These departments will implement 1,573 incentivized projects in municipalities with food and nutritional security vulnerabilities.

According to INAB, the total number of projects will have an investment of 2.68 million dollars. In addition, 1,181 projects were boosted in municipalities with poverty and extreme poverty, with an investment of US$3.48 million.

The Beneficiaries

The payments through Probosque and Pinpep mainly benefited individual holders or owners, forestry companies, and association projects.

MINFIN directly credits the funds to each beneficiary’s bank account, following certification issued by INAB, which indicates the fulfillment of commitments acquired by the users for the recovery, protection, and management of the forests.

INAB continues to support Guatemalan families that carry out forestry projects directly. For example, the last disbursement generated 1,617 jobs in rural areas.

These actions contributed to the environment by preventing the deforestation of 43,700 acres of natural forest under protection and production management. In addition, 1.04 million tons of carbon were fixed in the area under management with incentives.

The establishment, maintenance, and sustainable management of 19,625 projects, equivalent to 39 acres, have been encouraged in 2023, injecting 38.1 million dollars into the local economy.

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