Ecuador’s Yasuní-ITT Initiative: The Fate of One of the World’s Most Biodiverse Regions

August 27, 2013

by Estefanía Marchán and Joaquín Vallejo

Deep in the northeastern part of the Ecuadorian Amazon is the Yasuní National Park, a 2.4-million acre reserve believed by scientists to be the most biodiverse place on Earth. Its location, where the equatorial divide meets the Andes and the Amazon rainforest, has made Yasuní one of the world’s most unique habitats for life. The park is also home to two of the planet’s last uncontacted tribes.

Yet beneath all that diversity lays an estimated 846 million barrels of oil, which the Ecuadorian government plans to extract. Earlier this month, President Rafael Correa abandoned the novel Yasuní-ITT initiative, which was launched in 2007 to keep the oil underground. The initiative sought to raise $3.6 billion in contributions from international donors—half of the estimated $7.2 billion Ecuador would face in lost revenue over time. Hailed as a breakthrough in the global fight against climate change, the plan would have prevented 400 million tons of carbon dioxide from being released into the atmosphere. But the initiative raised only $13 million in actual donations and $116 million in pledges.

Addressing the country, Correa said the world had “failed” Ecuador. But despite the country’s real need for financial resources, Correa shares a significant portion of the blame. The government’s inflexibility and lack of transparency over how to administer Yasuní-ITT’s funds discouraged potential donors. Similarly, his efforts to attract investment and expand the country’s oil sector invited their mistrust.

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Tags: Ecuador, Yasuni, Rafael Correa

Monday Memo: Venezuelan Corruption – Chile’s Election – Humala’s Popularity Drop – FARC Negotiations – Oil Drilling in Ecuador

August 19, 2013

by AQ Online

Likely top stories this week: Venezuelan opposition agrees to participate in corruption debate; Chilean presidential candidate Evelyn Matthei registers her candidacy; Humala’s popularity reaches a new low; peace talks resume in Colombia; and environmental groups seek a referendum to prevent drilling in Ecuador’s Yasuní National Forest.


Public Debate on Corruption in Venezuela

On Saturday, Venezuelan President Nicolás Maduro announced that he would ask the National Assembly for an enabling law to combat corruption, and challenged the opposition to participate in a public debate to discuss the government’s nationwide anti-corruption campaign. The Venezuelan government has made over 100 corruption-related arrests in the last month, including several political and media figures associated with the opposition.

On Sunday, Julio Borges, the national coordinator of Primero Justicia, said the opposition would participate in a public debate on corruption, and called on the president to “tell us the time and location” for a discussion on national TV and radio.  According to Henrique Capriles, opposition leader and governor of Miranda State, recent anti-corruption efforts are a strategy to divert public attention from other pressing problems such as insecurity and inflation. Capriles’ offices are currently under investigation for corruption.

Evelyn Matthei Officially Registers her Candidacy

On Sunday, the candidate for the Unión Demócrata Independiente (Independent Democratic Union—UDI), Evelyn Matthei, officially registered her candidacy for the Chilean presidential election on November 17. Matthei was accompanied by leaders of UDI and Renovación Nacional (RN)—the two parties that constitute the ruling Alianza coalition. After registering her candidacy, Matthei gave a speech that recognized the current lead of former president and current presidential candidate of the Nueva Mayoría coalition, Michelle Bachelet. Still, Matthei expressed hope of taking the election to a second round of voting. If no candidate secures half of the votes in the first round, a second round of voting would be held in mid-December.

Humala’s Popularity Reaches a New Low

On Sunday, the latest Ipsos-Perú survey published by El Comercio revealed that Ollanta Humala’s popularity dropped to 29 percent, the lowest during the two years of his presidency. Despite the government’s recent military win again the Shining Path terrorist group, the president registered 4 percentage points less popular support than in July 2012. The survey also revealed that first lady Nadine Heredia’s popularity dropped to 38 percent, and Lima Mayor Susana Villarán continues to have one of the highest disapproval rates in the country, which reached 69 percent in August.

New Round of Colombian Peace Negotiations

On Monday, the Colombian government and the Revolutionary Armed Forces of Colombia (Fuerzas Armadas Revolucionarias de Colombia—FARC) begin a new round of negotiations in Havana to discuss topics such as political participation. This is one of the most controversial items in the peace agenda as it involves negotiations around the incorporation of the rebel group into the country’s democratic system. According to Humberto de la Calle, the lead government negotiator, the FARC must surrender their arms and reach agreements around the five topics of the agenda to participate in Colombian politics. President Juan Manuel Santos sent a message to the FARC stating his commitment to the negotiations, but warned that the military fight will continue in the interim.

Environmental Groups in Ecuador Vow to Save Yasuní Program

On Sunday, environmental groups, human rights groups and Indigenous lawmakers threatened to take Ecuador’s government to international court over a plan to drill for oil in Yasuní, a protected part of the Amazon rainforest that is believed to hold some 900 barrels of oil—about a fifth of Ecuador’s total reserves. The actions follow President Rafael Correa’s statement last week that the government was abandoning the Yasuní-ITT Initiative, a long-term commitment to refrain from drilling in the rainforest area if the international community came up with $3.6 billion to offset some of the foregone benefits of the oil money. The president said that “the world has let Ecuador down,” as just $13.3 million has been delivered to the country. In the coming days, Correa plans to ask the National Assembly to declare crude-oil exploitation in the Yasuní as a "national interest." In response, some of Ecuador’s Indigenous lawmakers have called for a national referendum to decide on the issue.


Tags: Venezuela, Nicolás Maduro, Chile Presidential Elections, Evelyn Matthei, Michelle Bachelet, President Ollanta Humala, Colombia Peace Talks, FARC peace negotiations, Ecuador, President Rafael Correa, Yasuni

Ecuador and UNDP to Sign Amazon Conservation Agreement

July 26, 2010

by AQ Online

Following four months of negotiations, the Ecuadorian government and the United Nations Development Programme (UNDP) are expected to sign an agreement on August 3 that will create a trust fund to manage international contributions to the Yasuni – Ishpingo Tambococha Tiputini (ITT) initiative.  The Yasuni-ITT Trust Fund will allow Ecuador to receive monetary compensation in exchange for not extracting oil deposits in the Amazon’s Ishpingo-Tambococha-Tiputini (ITT) oilfields—a region of high biodiversity located in the Yasuni National Park. 

As part of the agreement, Ecuador will receive at least 50 percent of the revenue it would have otherwise received for extracting the resources found in the ITT oil reserve.

This initiative is the first of its kind and presents Ecuador as an example of a “post-petroleum” country positioning itself to fight global climate change. The initiative has received political support, but it now faces the challenge to secure donors. Only Germany has pledged an exact monetary figure to the initiative (50 million euros annually over 13 years).  Ecuador hopes to receive funding from other Euro-bloc nations as well as the Arab nations of the Organization of the Petroleum Exporting Countries (OPEC), the United States, public and private companies, inter-governmental organizations, non-governmental organizations, and the general public. 

Tags: petroleum, Ecuador, Climate change, land preservation, UNDP, Yasuni