World Bank approves $700m loan to boost Ecuador’s climate resilience

It will allow the government to continue its policies to address structural challenges to achieve fiscal sustainability as well as strengthen low carbon development and support the country’s commitment to carbon neutrality by 2050

The World Bank has approved a $700 million (£516m) loan to support Ecuador’s efforts to foster climate resilience and job creation as well as mitigate the impacts of the COVID-19 crisis.

It is the first of three loans that will allow the Ecuadorian Government to continue its policies to address structural challenges to achieve fiscal sustainability as well as strengthen low carbon development and support the country’s commitment to carbon neutrality by 2050.

It will support government efforts to promote transparent and green tax collection, encourage private sector participation in the financing of non-conventional renewable energy, facilitate green distributed generation, decarbonisation of the transport sector, measurement and reporting of greenhouse gases and development of voluntary carbon markets.

Simón Cueva, Minister of Economy and Finance said: “This operation reflects Ecuador’s decision to create opportunities, generate employment, guarantee transparency and fiscal sustainability with equity and promote climate action.

“The World Bank’s mission is to reduce poverty, promote shared prosperity for those who have the least and achieve environmental sustainability. Thus, today’s decision by the Bank’s Board of Directors is an acknowledgment of Ecuador’s commitment to sustainable, equitable growth for the planet.”

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