2023-07-12 17:30:53
Ecuador has presented its Framework of Sovereign Green Bondsa mechanism that will allow the country to finance public investment projects with a positive environmental and climate impact, the Ministry of Environment, Water and Ecological Transition reported in a statement.
This initiative will provide the State with the financing of green public projects that conserve biodiversity and promote sustainable transportation, proper waste management, renewable energy, energy efficiency, reasonable agriculture, responsible water management, efficient water management wastewater and the fight against climate change.
The framework sets out a series of technical criteria for projects seeking financing from green bonds.
The recipients must also be part of the annual investment plan, have priority status and be under the public investment guidelines and the methodological guide for the presentation of investment projects.
To guarantee an adequate selection and evaluation of the projects, 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 expected environmental and climate impacts.
During the presentation of the Sovereign Green Bond Framework, the Minister of Environment, Water and Ecological Transition of Ecuador, 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 .
Dávalos considered that this “will benefit, especially, the most vulnerable communities, those that suffer to a greater extent the extreme impacts of nature that unfortunately we are already experiencing today.”
At the same event, Dávalos also presented the Readiness Project, called “Mobilization of international climate finance and private investment for climate-resilient and low-carbon development in Ecuador.”
This project seeks to strengthen the strategic political and regulatory frameworks to increase the mobilization of climate financing at the national and international level, as well as private investments to reduce the emission of greenhouse gases and climate-resilient and low-carbon development.
Readiness is funded with nearly $500,000 in grants from the Green Climate Fund and, with the Global Institute for Green Growth as implementing agency, will support the operation of the Sovereign Green Bond Framework through instruments and tools that integrate standards environmental, social and governance.
It will also facilitate the exchange of experiences at a regional and global level to contribute to the creation of a green taxonomy and regulatory frameworks for debt-for-climate swaps.
Risk assessment systems will be established and the formulation of regulations for the issuance of green bonds will be promoted in collaboration with the financial sector, in addition to strengthening public-private partnerships with low carbon emissions and climate smart
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