Ecuador

Ecuador forms part of the list of countries that are home to more than two-thirds of the world's biodiversity (megadiverse countries), being the smallest in terms of the surface area of all of them, making it the country with the greatest number of species per square kilometer. It is part of two biodiversity hotspots: Tumbes-Chocó-Magdalena and the tropical Andes. It has 18% of the total number of birds recognized worldwide, which represents at least 1,610 species and places it in 4th place in the world. Of these, 133 are hummingbirds, placing it in 2nd place in the world for this group. It is also home to 7% of the world's amphibians and mammals. 

BIOFIN started in Ecuador in 2014 and focused on preparing a new methodological framework to facilitate the identification, development, and implementation of optimal, evidence-based financing plans and solutions for the development of strategies and the design of resource mobilization solutions at the national level.

During that period it was identified that the total projected financial needs for the period 2016-2021 for biodiversity conservation actions would reach US$2,364'487,058. The estimated funding gap was US$1,301'884,153 for the same period.

In this regard, the Project developed a National Biodiversity Strategy Financing Plan for the period 2016-2021 which counted on the diversification of funding sources, including new sources such as equity and debt securities, as well as the decentralization of environmental management to local governments. It also included the development of financial capacities at parish, cantonal and provincial government levels. The financial targets until 2021 are structured as follows: fiscal (55.55%), grants (6.56%), loans (16.58%), equity (16.39%), and negotiable instruments (4.92%).

BIOFIN in a second phase from 2019 to the present seeks to develop Financial Solutions that focus on providing answers to the needs of biodiversity financing in coordination with national counterparts (including the Ministry of Environment, Water and Ecological Transition - MAATE).

BIOFIN is currently working in Ecuador on 5 Financial Solutions including, Protected Areas Financing; Water Tariffs; Investment Funds; Financial Sector and Biodiversity; and Biodiversity Financing Plan and its implementation.

Regarding BIOFIN's work on "Financial Sector and Biodiversity", BIOFIN in Ecuador supported the design of green credit lines for the Popular and Solidarity Economy (with an allocation in 2022 of $108 million) and the development of a Social and Environmental Risk Management System (SARAS) for this same segment, which was launched on 22 June 2023. This allowed for the improvement of the SARAS software including better integration of forest cover and protected areas when running the analysis. Recently, CONAFIPS indicated that, in April 2024, $804 million was assessed using SARAS, resulting in a relevant alignment of resources filtered through exclusion lists and sustainable finance criteria that would otherwise have maintained business as usual. In addition, CONAFIPS requested to extend the duration of the Massive Open Online Courses (MOOC) on green credit and SARAS developed with the support of BIOFIN to run until December 2024. As of April 2024, the MOOC has reached 5,667 people in 257 Savings and Credit Cooperatives in the country. Read more: Ecuador: Green Credit in the Popular and Solidarity Economy | BIOFIN

In the future, BIOFIN in Ecuador will implement the Biodiversity Financing Plan, which has nine actions for governance and inter-institutional coordination; optimization of public spending; environmental accounting and green statistics; harmonization of international cooperation according to national needs; strengthening the financial system for biodiversity financing at all levels (public, private, popular economy and capital market); strengthening private sector investment in biodiversity financing; strengthening the administration of Biodiversity Investment Funds; financial sustainability of Protected Areas; innovative financing mechanisms for conservation areas (not only protected areas).