Overview
Honduras has a population of around 10 million. It is best known for the production and export of agricultural products (coffee, palm oil and bananas) as well as for its textile industry (maquila). In 2023, remittances sent by Hondurans abroad represented 26.65% of the country's GDP.
Poverty rate is among the highest in the continent. This is due, among other things, to high economic inequality, limited economic growth, high informal employment, in a context of extreme vulnerability to climate change effects such as draughts, floods and recurrent tropical storms and hurricanes. However, the recent reduction of 10 percentage points of households in poverty rate is the starting point of a positive trend.
Our partnership
The EU and its Member States are key actors in the economic and social development of Honduras. Since the first Cooperation Framework Agreement EU-Honduras of 1993, Europe has significantly financed the provision of basic services for the most vulnerable population and the strengthening of national capacities for the implementation and management of sustainable public policies. Many sectors have benefited from EU support in foreground rural development and food security, employment and economic growth, justice, rule of law, the protection and promotion of human rights and the responsible management of natural resources, in particular forests. The EU currently works with Honduras in alignment with the EU Global Gateway initiative and Honduran investment priorities.
EU Member States represented in the country, Germany, France and Spain, together with Switzerland, integrate the Team Europe Initiative – Honduras Green Recovery- Climate Change and Natural Resource Management.
For the 2021-2027 period, the EU has earmarked a bilateral envelope of €163 million for the multiannual indicative cooperation programme focused on a) climate change and energy, b) employment and economic growth and c) justice and rule of law sectors.
EU-Honduran partnership documents can be found in the 'Related documents' section below.
Our key initiatives
- A climate resilient, low-carbon economy
The EU works with Honduras to build up climate resilient infrastructure and sustainable forest management, benefitting vast areas of Honduran territory. That includes through flagship Global Gateway projects around two multipurpose dams and the restoration of the Yojoa lake basin. At regional level, the EU Global Gateway initiative is promoting the Central American Regional Electricity Market (MER) to improve interconnection and energy provision along the region.
Specific actions include:
- Co-financing feasibility studies for the construction of multi-purpose dams at El Tablón.
- Providing technical assistance to the National Electric Energy Company to reinforce its capacities for project management and implementation.
- Co-financing the feasibility study for the sustainable recovery of the Yojoa lake basin and helping implement its sustainable recovery through:
- Work on sanitation infrastructure
- Introducing sustainable agricultural practices
- Greening the local economy
- Using nature-based solutions and carbon sink components for environmental restoration and promotion of circular economy
- Adapting agricultural production to climate change.
- Supporting the integrated management of the Rio Plátano biosphere.
- Strengthening forest governance and helping Honduras adapt to the EU Deforestation Regulation.
- Supporting the introduction of innovative green financing instruments and products for sustainable private investments.
- Implementing forestry governance actions across the territory and on-border zones.
- Working on sustainable water management and climate policy.
- Employment, decent work and growth
This part of EU-Honduras cooperation covers a wide range of topics, from sustainable value chains to digital technology. Together, the EU and Honduras are:
- Providing access to sustainable finance for green and smart value chains around the Yojoa lake basin and the sites of new multipurpose dams.
- Promoting micro, small, and medium-sized businesses in sustainable value chains.
- Promoting business-to-business interactions.
- Incentivise private sector to adopt ESG (environmental, social and governance) factors.
- Supporting skills and entrepreneurship programmes.
- Working to end child labour in value chains.
- Improving SME competitiveness through digitalisation and innovation.
- Improving institutional cybersecurity, digital law and policies, and other aspects of government approach to digital technology.
- Rule of law and democratic governance
The EU is working with Honduras to achieve a more just society. That includes strengthening civil society and creating more accountable government. Specific actions include:
- Supporting peaceful and credible elections in Honduras.
- Building an accessible, independent, accountable and effective justice system.
- Fighting corruption and strengthening transparent public institutions.
- Strengthening civil society organisations and government institutions to promote human rights protection.
- Supporting the digitalization of services in the security system.
