Public investment projects that have a positive environmental and climate impact can seek financing from green bonds.
Ecuadorian authorities socialized the Green Bond Framework for environmental projects, on July 11, 2023.
The Government presented this Tuesday, July 11, the Sovereign Green Bond Framework. It is a mechanism to finance public investment projects with a positive environmental and climate impact.
The framework contains a series of technical criteria for projects seeking financing from green bonds.
The Ministry of Environment, Water and Ecological Transition reported that this initiative will facilitate the financing of green public projects along the following lines:
- Biodiversity conservation
- Sustainable transport
- Proper waste management
- Renewable energy
- Energy efficiency
- reasonable farming
- Responsible water management
- Efficient wastewater management
- Fight against climate change
To access the funds, applicants must be part of the annual investment plan, have priority status and be under the public investment guidelines and the methodological guide.
For the selection, the Ministry of Economy and Finance will work in close coordination with the National Secretariat of Planning and the Ministry of the Environment, Water and Ecological Transition.
Other public institutions will also be involved, in order to effectively monitor and report the expected environmental and climate impacts.
During the presentation of the Sovereign Green Bond Framework, the Minister of the Environment, José Antonio Dávalos, pointed out that this instrument represents a unique opportunity for Ecuador to promote sustainable development and accelerate the implementation of green and climate projects.
Readiness Project
Dávalos also presented the Readiness Project, called “Mobilization of international climate finance and private investment for climate-resilient and low-carbon development in Ecuador.”
Readiness is funded by nearly $500,000 non-refundable from the Green Climate Fund.
This project will support the operation of the Sovereign Green Bond Framework through instruments and tools that integrate environmental, social and governance standards.
