Climate change poses a serious threat to Central American societies due to its foreseeable and multiple impacts on the population and productive sectors. In fiscal terms it constitutes a contingent public liability that will affect the public finance of governments for generations to come. It is est timated that by 2030, Central America will still produce less than 0.5% of greenhouse gas (GHG) emissions on the planet, yet it is already one of the regions most vulnerable to the battering of climate change. The increase in atmospheric and sea temperatures, the reduction and instability of rain patterns and the rise in sea levels, together with the intensification of extreme meteorological events {lcub}u2014{rcub}such as droughts and hurricanes{lcub}u2014{rcub} will impact the production, infrastructure, ways of life, health and safety of the population, and will also weaken the environment{lcub}u2019{rcub}s capacity to provide vital resources and services. In response to the mandate that emerged from the May 2008 Central American Presidential Summit on Climate Change, the ECLAC Subregional Headquarters in Mexico is implementing the project sThe Economics of Climate Change in Central America{esc}g3{esc}s with the region{lcub}u2019{rcub}s Authorities of Environment, Ministries of Finance/Treasury, the Central American Secretariat for Economic Integration (SIECA) and the Central American Commission for Environment and Development (CCAD). The project was approved by environmental authorities beginning in January 2009 with funding from the British government{lcub}u2019{rcub}s Department for International Development (DFID). Its goal is to alert decision makers and key players in Central America, particularly those from the social and economic fields, to the urgency of confronting the challenge of climate change and promoting a dialogue of policy options as well as national and regional actions. The specific objective is to conduct an economic evaluation of the impact of climate change in Central America with different development scenarios and emissions trajectories, while considering the costs and benefits of potential sbusiness as usual{esc}g3{esc}s responses, and of options for vulnerability reduction and adaptation, as well as the transition toward an economy that is both sustainable and low in carbon. The Project Steering Committee is comprised of the Ministers of Environment and Treasury/Finance of the seven countries of Central America. It has a Regional Technical Committee with delegates from those Ministries, CCAD/SICA and SIECA. The ECLAC Subregional Headquarters in Mexico acts as Project Coordinating Unit. The initiative works in coordination with other projects in Latin America, with the global network of projects on the economics of climate change and the British government{lcub}u2019{rcub}s Stern team. Throughout 2009, the project implemented the following components: Climate Scenarios, Macroeconomic and Demographic Scenarios, Land Use Change, Water Resources, Agriculture, Biodiversity, Energy, Economic Valuation of Impacts (initial stage), Poverty and Adaptation (initial stage), Mitigation, Policy Options in Adaptation and Mitigation (initial stage). The disasters component is being executed by ECLAC{lcub}u2019{rcub}s Disaster Unit with financing from the Kingdom of Denmark. The pending components to be started in the coming months are Health, Ecosystems and Forest/Land Use Change. The Poverty, Economic Valuation of Impacts, Adaptation and Mitigation Options components and their costs will continue. Additionally, the project (continua);