Green Banking

The Development Bank of Ecuador B.P. (BDE) recognizes the importance of taking action against climate change, a problem that impacts both economic and productive activities and the balance of ecosystems worldwide. Within this parameter, the Development Bank plays a priority role to promote and finance projects that support adaptation and mitigation against climate change. This work allows promoting sustainable, responsible and environmentally friendly actions, considering the intergenerational contribution and gender mainstreaming.

As normative documents, the BDE approved the 2018-2021 Work Plan through Resolution No. 2018-DIR-023, dated June 06, 2018. This Action Plan includes 13 management pillars, among which the access to new sources of financing and a shift towards environmental sustainability.

Project for the recovery, maintenance and improvement of the San Pedro Mártir watershed. Paltas, Loja province.

Mula Corral Project. Ambato - Tungurahua.

Project for the recovery, maintenance and improvement of the San Pedro Mártir watershed. Paltas, Loja province.

Additionally, the second objective of the 2019-2021 Strategic Plan expresses the need to expand the portfolio of products and programs promoting the participation of the private sector in territorial development, as well as in the adaptation and mitigation of climate change.

The BDE is currently under construction of two fundamental policies: its Environmental and Social Policy and its Gender Policy, with the support of multilateral organizations, with whom the pertinent actions are carried out for their construction.

Regarding Climate Financing, the BDE has set itself as a priority goal to be accredited as an implementing agency for the Green Climate Fund (FVC), an intention that it has formalized before the Ministry of Environment and Water (MAAE), which is the national authority determined against the FVC. The MAAE has supported the BDE to identify its institutional potential and the gaps to be worked in order to meet the goal of being an accredited agency before the GCF and to be able to attract climate financing that can be channeled to the territory.

BDE maintains active channels of coordination with different instances of the MAAE, coordinating issues of environmental quality, climate change, etc. Additionally, the Bank works closely with the German Technical Cooperation (GTZ), under an Interinstitutional Cooperation Agreement. The purpose of this agreement is to jointly develop cooperation projects in the generation of financial products and programs, strengthening of capacities and institutional strengthening in matters of climate change and sustainable development in urban contexts.

The projection of the BDE as Green Banking requires homologation of its processes and regulations to internationally requested parameters for attracting climate funds by financiers. That is why we are working with some international organizations (IDB, CAF, GIZ, etc.) to raise methodologies, generate result and impact indicators, among others. On the other hand, and no less important, the BDE has prioritized updating its Environmental and Social Management System - BDE, in force since 2015, with the aim of projecting itself to a more complete, systematic, dynamic, and operational Environmental and Social Risk Analysis System (SARAS).

It is important to emphasize that the BDE, in tune with the necessary productive and economic activation in the territory due to the impact of the COVID-19 Pandemic, has contributed in an integral way in different areas (health, economy, finance, production, etc.) . The institution is undertaking “Green Recovery” actions; In other words, it is working on the formation of initiatives and the identification of climate financing that promotes a green recovery, fostering the generation of employment by financing projects in sectors that have been most affected by the pandemic.

Lago Agrio Project, contestant for the Green Award, an initiative of the BDE that seeks to reward the best environmental practices of the GAD.