Ecuador

Ecuador possesses about five to ten percent of the world's biodiversity and is therefore one of the 20 megadiverse countries. Ecuador owes this diversity, among other things, to the country's four geographical regions, which are very different. More than half of the country is covered with forests. These play a major role in the local and global climate, are home to countless animal and plant species and are the basis of life for the rural population and indigenous peoples, as well as the basis for the country's sustainable development. Although around 20% of the territory is under protection, Ecuador's forests are threatened by illegal logging, oil extraction and the expansion of agricultural borders. Every year 55,000 hectares of forest disappear. However, the new constitution of the country enshrines the principle that nature is to be considered as a separate subject with its own rights. On behalf of the German federal government KfW is supporting Ecuador with around EUR 150 million in Financial Cooperation in the field of environmental protection and resource conservation.

As early as 2011 the government tried to better secure the country's protected areas by means of the Strategic Plan of the National System of Protected Areas (SNAP). KfW Development Bank supports this approach and participates in financing the protected areas and their infrastructure. It also finances compensation payments for forest owners who place their areas under nature conservation. These forest owners are mostly indigenous people and use the money to advance development projects in their communities, for example in health and education.

Despite the introduction of the National System of Protected Areas, the progressive loss of forests and the associated loss of biodiversity is a continuing problem and a challenge in the fight against climate change. Ecuador, for example, has committed itself to improving the protection of its forests as part of international climate protection. A core element is the government’s REDD+ Action Plan "Bosques para el Buen Vivir" 2016-2025, which is a framework for German Financial Cooperation to support political reforms and the implementation of strategies for forest protection and sustainable development.

In addition to the protection of biodiversity and forests, the expansion of renewable energies and energy efficiency play an important role in achieving sustainable growth that is less dependent on oil. As part of international climate protection, Ecuador has set itself the goal of reducing greenhouse gas emissions by 25 % until 2025. The National Energy Agenda to 2040 and the current National Plan for Energy Efficiency concretise these ambitions. On the one hand, the focus is on the generation of clean energy by using vegetable oils instead of fossil fuels and using photovoltaic systems, on the other hand, the conversion and renewal of production capacities in industry and clean mobility. These are the main priorities of KfW Development Bank's commitment within Financial Cooperation with Ecuador.