Nicaragua’s diverse GEF portfolio offers insight into the opportunities and constraints of sustaining global environmental benefits in a highly vulnerable national context.
A 2011 country portfolio evaluation reviewed the country's support since 1996, totaling $32 million in GEF funding and $165 million in cofinancing. Using portfolio analysis and stakeholder consultations, the evaluation finds that capacity development has been a consistent strength, fostering enabling policies for larger-scale action, though local institutional capacity—especially in civil society—remains weak.
Biodiversity projects aligned with national priorities but often set overambitious goals and struggled to sustain results after closure. Climate change mitigation projects proved more effective, delivering environmental and socioeconomic gains through rural renewable energy, while adaptation remains under-integrated despite its growing importance.
The evaluation also notes early progress in land degradation and persistent organic pollutants, alongside persistent efficiency challenges such as slow project processing and uneven monitoring.
The report recommends mainstreaming adaptation, designing more realistic biodiversity projects, strengthening local capacity, and improving monitoring and evaluation data.