On 12 March 2026, the British Ambassador to Honduras, Juliana Correa, held a virtual introductory meeting with Honduras’ new Secretary of Finance, Emilio Hernández Hércules. Both sides discussed fiscal responsibility, transparency and practical cooperation on public financial management, climate‑resilient infrastructure, debt management, fiscal risk modelling and the modernisation of national investment planning. (gov.uk)

For Honduras, this is about protecting lives and balancing the books. The IMF finds that storms and floods have imposed average annual losses of 6.3% of GDP since 1960, with tropical storms Eta and Iota alone costing an estimated 7.5% of GDP in 2020. The World Bank adds that climate change is set to increase flooding and landslides on roads linking people to hospitals, schools and markets. (imf.org)

That context explains the focus on governance. An IMF Public Investment Management Assessment, incorporating a Climate PIMA in 2024, identified weaknesses along Honduras’ investment cycle that blunt the system’s ability to select and deliver resilient projects, and set six priority actions to fix them. (imf.org)

Fiscal risk tools are no longer niche. The Coalition of Finance Ministers for Climate Action points to open‑source catastrophe modelling such as CLIMADA and OasisLMF; CLIMADA has already supported adaptation studies in Honduras, helping policymakers quantify hazard impacts and compare cost‑effective options. (financeministersforclimate.org)

Debt policy can bolster resilience too. UK Export Finance now offers Climate Resilient Debt Clauses that let eligible sovereign borrowers pause repayments after a declared climate disaster-creating fiscal space for response and repair. If Honduras seeks UK‑backed infrastructure, these clauses could be a practical safety valve. (gov.uk)

On infrastructure, the fastest gains come from embedding resilience into standards and appraisals. Honduras’ experience under the Pilot Program for Climate Resilience channelled investment into water security; scaling similar screening across transport and energy, with whole‑life costing, would lock resilience into every lempira of capital spend. (worldbank.org)

Financing remains the hard edge. UNEP’s Adaptation Gap Report estimates developing countries’ adaptation needs are 10–18 times current international public flows; its 2025 update puts needs to 2035 at around twelve times today’s finance. That gap makes credible pipelines and predictable rules indispensable. (unep.org)

The UK signalled it is ready to support. Through International Climate Finance, the UK reports 33.89 million people have gained resilience to climate shocks since 2011, with programmes spanning Latin America, including Honduras-creating a platform for technical partnerships on project preparation and access to capital. (gov.uk)

What to watch next: a joint technical session on fiscal risk modelling; piloting a simple climate budget tag for the 2027 cycle; and early scoping of resilient transport corridors that could qualify for UKEF support and CRDCs. SEFIN’s recent note on an incoming IMF mission suggests the reform window is open. (gov.uk)