[{"bbox": [85, 153, 1144, 207], "category": "Text", "text": "contribute to these emissions and loss of fertile soil. As a result of deforestation and degradation, some tropical forests now emit more carbon than they capture, turning them from a carbon 'sink' into a carbon source."}, {"bbox": [85, 222, 1145, 334], "category": "Text", "text": "In this context, it is crucial to highlight the precarious situation of environmental human rights defenders, who are mainly indigenous. According to OHCHR, they are subjected to high levels of criminalisation in the context of their claims for ancestral land ownership and the defense of the environment¹⁰. Women are often at the forefront of environmental movements and face gender-based attacks."}, {"bbox": [85, 347, 1145, 633], "category": "Text", "text": "In addition, the Regulation on deforestation-free products¹¹ provides that the import and marketing in the EU of six types of agricultural products be prohibited if they are not deforestation-free (coffee, palm oil, cocoa, wood products, soy and beef). The analytical assessment \"Cartography of the value chains of coffee, cocoa, palm oil, sugar and wood products and their adaptation to the EU requirements in terms of environmental and social due diligence\" was carried out by the Trade, Private Sector Development, and Engagement (TPSDE) Facility in September 2022, assessing the level of readiness of the chains for coffee, cocoa, wood, palm oil, and sugar chains. The assessment showed that palm oil and coffee are the most sensitive products to regulatory changes in the European market. In the case of cocoa, coffee and wood chains, the participation of small and micro producers is very high and due to their geographical distribution, these chains play a very important role in the structuring of the economy of territories particularly vulnerable from a social and environmental point of view¹²."}, {"bbox": [85, 647, 970, 675], "category": "Section-header", "text": "**Component 2: Support the digitalisation of services provided to MSMEs and cooperatives.**"}, {"bbox": [85, 688, 1145, 888], "category": "Text", "text": "The weak institutional framework and governance in Guatemala does not provide the legal framework and services required to strengthen the business climate and social inclusion by adequately supporting MSMEs, cooperatives, and the business sector in innovation and digitalisation processes. There is a weak economic policy framework and insufficient institutional capacities that limit the competitive development of the country, especially for MSMEs and cooperatives, and in its transition process towards a society and economy anchored in a circular and green economy that supports the global transition towards a low carbon economy with 'green jobs', accelerating digitalisation and innovation and opening new opportunities for economic inclusion with decent employment."}, {"bbox": [85, 901, 1145, 1043], "category": "Text", "text": "The limitations in institutional capacity in Guatemala are reflected in the last ranking of competitiveness of 2019, with a position of 121 compared to 141 countries evaluated worldwide, the public sector performance has a value of 41.1/100. This context gave rise to decree 5-2021 for the Law on the Simplification of Procedures, through the simplification, streamlining and digitisation of administrative procedures, using information and communication technologies to facilitate interaction between individual or legal persons and government agencies."}, {"bbox": [85, 1056, 1145, 1141], "category": "Text", "text": "Within the framework of these processes, the Government of Guatemala has introduced several platforms for exports, imports, investments, creation of new companies, etc., that require interoperability among them to allow an efficient use by the private sector and leading to a better investment and business environment."}, {"bbox": [85, 1155, 1145, 1211], "category": "Section-header", "text": "**Component 3: Improve the competitiveness of MSMEs and cooperatives through better access to finance, innovation and digital tools.**"}, {"bbox": [85, 1225, 1145, 1396], "category": "Text", "text": "MSMEs and cooperatives present different challenges in financial, human and technical capacities, and to achieve the development of sustainable social and environmental solutions with digital tools and new production models based on circularity and the bioeconomy. The innovation ecosystem is incipient and the institutional support tools are limited, which does not favour economic inclusion, especially for young people, women, returned migrants, the disabled and indigenous people, i.e. support will be granted to the REI (Network of Indigenous Entrepreneurs) and its Mayan Business School among others."}, {"bbox": [85, 1409, 1145, 1522], "category": "Text", "text": "Despite their economic and social importance, MSMEs continue to present a series of critical factors that limit their growth and contribution to the sustainable and inclusive development of the country, such as: 1) low levels of productivity; 2) limited access to credit services and financial inclusion; 3) low level of competitiveness; 4) low levels of innovation and digitalisation; 5) high administrative costs to comply with national and international"}, {"bbox": [85, 1563, 319, 1583], "category": "Footnote", "text": "¹⁰ See A/HRC/46/74 para. 86-87"}, {"bbox": [85, 1582, 1144, 1641], "category": "Footnote", "text": "¹¹ COM/706) related to the marketing on the Union market and the export from the Union of certain raw materials and derived products associated with deforestation and forest degradation and repealing the Regulation (UE) n.o 995/2010 EUR-Lex - 52021PC0706 - EN - EUR-Lex (europa.eu) https://data.consilium.europa.eu/doc/document/PE-82-2022-INIT/enpdf"}, {"bbox": [85, 1640, 794, 1661], "category": "Footnote", "text": "¹² VF Executive Summary Mapping and Impact Analysis- Ed Final14.11.22_ENGLISH.pdf (europa.eu)"}, {"bbox": [1028, 1682, 1144, 1706], "category": "Page-footer", "text": "Page 11 of 39"}]