Ecuador wants to monetize its biodiversity
Ecuador is planning to channel funds into its biodiversity, but faces a key challenge: its reliance on oil.
TL;DR
- Ecuador is pursuing green finance tools like green bonds, debt-for-nature swaps, and biodiversity credits to fund conservation.
- The government also plans to expand oil exploration and critical-mineral development, which has led to opposition from Indigenous and environmental groups.
- Ecuador aims to host the U.N. biodiversity COP18 in 2028 and hopes to issue its first sovereign green bond in 2027.
- Previous debt-for-nature swaps have freed up approximately $1.1 billion for conservation in the Amazon and Galapagos Islands.
- Ecuador's energy mix in 2024 was about 80% oil and oil products, with two-thirds of its electricity from hydroelectric power.
- Biodiversity credits are being introduced as a way to monetize nature, reflecting multiple ecosystem metrics rather than just carbon storage.
- Regenerative cacao farming is being promoted as a way to reverse deforestation, with farmers paid double the market price for sustainable practices.