Produbanco, Pichincha, Procredit, Bolivariano and Banco Pacífico offer green loans to finance sustainable projects that provide solutions or compensate for the environmental impact.
Globally, this financing is promoted to support the goals set by the international community, reflected in the Paris Agreement and the Sustainable Development Goals (SDGs) of the United Nations Organization (UN).
In 2016, the Ecuadorian private bank signed a voluntary agreement called “The Sustainable Finance Protocol of Ecuador”.
With this, the Sustainable Finance Committee of Ecuador was created, which promotes green financial products. The support of multilateral organizations, such as the Development Bank of Latin America (CAF), the International Finance Corporation (IFC) and the United Nations Environment Program Financial Initiative (UNEP FI), has allowed the financial sector mobilize these resources.
According to data from the Association of Private Banks of Ecuador (Asobanca), since 2016 Produbanco has disbursed $ 142 million in this type of product. Procredit more than $ 72 million (since 2012). Banco Pichincha started in 2018 and to date has placed $ 150 million.
The requirements and conditions to access this financing are the same as a traditional loan, but environmental permits and licenses are added to these. The Dutch company, in Quito, received $ 1.9 million from the Green Lines loan in Produbanco.
Álex Escudero, commercial manager, says that in order to obtain it, it was necessary to focus the project on the protection and conservation of the environment, efficient use of energy consumption and renewable natural resources. Also waste reduction, actions to promote recycling, among others. The company had two reasons to opt for this type of credit.
The first to implement the environmentally friendly project and the second because the interest rate was “1% lower”. According to Asobanca, interest rates respond to the segments set by the Superintendency of Banks. The ranges are differentiated by the customer segment that can be corporate, business, SME or microcredit.
Huella Verde is a company created in order to provide a solution to garbage in food courts. Produbanco conferred a financing of $ 20,000 to open operations in a new shopping center. The solution offered for waste is to provide restaurants with reusable dishes.
“We avoid thousands of plastic waste going to the trash daily and polluting the environment,” says Andrea Garzón, the company’s manager. On average each month the project prevents 265,000 waste from going to waste, recovering 5,580 kg of organic waste and 142 recyclable covers.
It runs on the Paseo San Francisco in Quito and in the Mall de los Andes, in Ambato. Another case is the loan that Banco Pichincha granted to the Retamo Parc Apartamentos project in Quito.
A loan of $ 2,350,000.00, at an interest rate of 11.23%, for a one-year term. Augusto Gortaire, project manager, says that his proposal tends to the inclusion of green filter areas, faucets and appliances with low consumption and greater efficiency.
They also have double discharge toilets, lighting management with timers and solar light sensors. “The commitment to the environment was the basis for obtaining financing,” he says.
Private banking has grown in the promotion of green credit lines, however to continue the Asobanca recommends that the private sector be aligned with the responsibility it has with sustainable development.
The association considers that it is necessary to invest more in infrastructure, technologies and sustainable processes, as well as activities that promote sustainability with long-term investment.