The conservation and protection of the environment in Ecuador has new allies at the national level. On April 6, the signing of Performance-Based Payment Agreement (APBD in Spanish) was signed between the Sustainable Environmental Investment Fund (FIAS in Spanish) and the Decentralized Autonomous Governments (GAD) of the Canton of Zapotillo in the province of Loja, the GAD of the Metropolitan District of Quito and the Commonwealth of the North Pacific on behalf of the GADs of Jama and Pedernales of the province of Manabí; for the subsequent delivery of non-reimbursable economic incentives for the management of its Conservation and Sustainable Use Areas (ACUS in Spanish).

The non-reimbursable financing belongs to the REDD+ Payment by Results mechanism of USD 18.5 million that Ecuador received in 2019 from the Green Climate Fund (GCF), for having technically demonstrated the reduction of deforestation in 2014; and thus having avoided the emission of around 3.6 million tons of carbon.

To make effective the REDD+ Payment by Results Ecuador, UNDP developed the tool called Performance-Based Payment Agreement, which will consist of the delivery of economic incentives to the GADs and Commonwealths once they have met the established goals for the management of their ACUS. The performance indicators that local governments must meet annually are:

• Rate of change of natural coverage in the ACUS.
• Number of hectares restored by the GAD in the ACUS.
• Budget executed by the GAD for the Management of the ACUS.

It is expected that the correct implementation of these activities by the selected local governments will contribute to adding national efforts for the reduction of deforestation and forest degradation through conservation, sustainable forest management, optimization of other land uses to reduce pressure on forests, and the reduction of Greenhouse Gas emissions within the framework of the REDD+ Action Plan (2016-2025).

The project will last three years until 2025 and local governments will be able to receive up to USD 1.3 million, after an Independent Advisor verifies compliance with the performance indicators of the last annual evaluation by the GADs and the Commonwealth.

The initiative is led by the Ministry of the Environment, Water and Ecological Transition and the Ministry of Agriculture and Livestock, through PROAmazonía, and UNDP, as implementing agency, as part of the efforts and commitment to national actions for mitigation and adaptation to the effects of climate change.

 

KEY FACTS:

• The project gives continuity and complements actions previously promoted by other REDD+ initiatives that are implemented in the country, such as the PROAmazonía program that began in 2017 and the REDD Early Movers (REM) program that began its implementation in 2019.
• Payment by Results supports the implementation of climate change mitigation and/or adaptation actions incorporated into Development and Land Use Plans (PDOT) and Land Use and Management Plans (PUGS) by local governments at different levels (provincial, cantonal and/or parish) or commonwealths or consortiums.
• The Performance Based Payment Agreement will benefit the GADs/Commonwealths selected for the management of Conservation and Sustainable Use Areas (ACUS).

 

GAD of the Metropolitan District of Quito applied with the ACUS of:

• Mashpi Guaycuyacu Saguangal (15,495 hectares).
• System and archaeological heritage Pachijal (15,881.89 hectares).
• Andean Bear Corridor (64,554 hectares).
• It represents 21% of the DMQ’s area, being 69% of its forest area.

 

Commonwealth of the North Pacific (GAD Jama and Pedernales) applied with the ACUS of:

• Jama Verde (42,093 hectares).
• Río Cuaque and influence areas (88,114.89 hectares).
• It represents 73% of each canton. 34% of its surface is forest.

 

Cantonal GAD of Zapotillo, applied with the ACUS of:

• Los Guayacanes Municipal Ecological Conservation Area (13,843.39 hectares).
• It represents 11% of the Zapotillo Canton. 93% of its area is forest.