Finance Solution 1: Promoting technical tools for financial mechanisms based on tourism in protected areas.
This finance solution started in 2019 and it focusses on the promotion of financial mechanisms developed during the first phase of BIOFIN II in order to provide technical inputs on financial sustainability to the management and conservation of protected areas to the new administration starting in 2021.
The technical studies developed include different rates or fees from service providers that operate in situ; analyses on the charge for entrance fees to protected areas according types of visitors; and self-sustainability fees for the maintenance of the protected area system.
The BIOFIN II extension is considering the strong negative effect of the Covid19 pandemic crisis for the Galapagos tourism activity and the inherent risk for the conservation of biodiversity, due to the reduction of important resources for the conservation of its protected areas. In this sense, technical assistance to Galapagos institutions to design other financial solutions in the tourist line and crowdfunding initiatives are being considered.
Finance Solution 2: Optimization of management models to strengthen the management and leverage of resources for biodiversity.
This finance solution started in 2019 considering the articulation among the public and private sectors, with a key role for the financial system to promote sustainable post-pandemic development.
BIOFIN continue strengthening the National Roundtable for Sustainable Finances and also promote other national processes such as the National Roundtable on Bio-economy.
BIOFIN has also promoted the application of financial mechanisms in order to endure the water provision, such as rough water tariffs for selected productive sectors.
Finance Solution 3: Impact Investment Fund for bio enterprises associated with bioindustry
Among the efforts of the private sector in Ecuador to contribute to sustainable development include Social Responsibility (SR) actions. The analysis of recent information on the subject in the country shows that the SR actions of representative companies are preferably aligned with seven standards of the Global
Reporting Initiative - GRI, which are: local communities, materials, energy, water and effluents, biodiversity, emissions, effluents and waste and, economic performance.
However, it should be noted that the contribution of actions from the private sector to national strategies for biodiversity, climate change and sustainable development has been difficult to make visible. This reveals the need and opportunity to optimize the impact of RS actions in the context of national interests.
Thus, arose the idea of creating a subaccount within the FIAS Sustainable Environmental Investment Fund, as a catalyst for SR resources from the private sector. It is in itself a private trust fund, which would welcome voluntary contributions from the business sector and other contributors aligning business interests with sustainable development and national goals for sustainable development. The proposed name of this subaccount is “Social Responsibility and Sustainability Fund (FRSS)”.
Finance Solution 4: Finance sector for biodiversity conservation
This Finance Solution looks for a coordinated work with the Finance Sector (including the Popular and Solidarity Economy) in order to promote more sustainable practices and the development of financial tools (such as green bonds) in the country.
In this sense, BIOFIN will support CONAFIPS (The National Corporation of Credit Unions in Ecuador) for an activity on Green Credit Lines in the Popular Solidarity Economy (EPS) and the implementation of Systems for Social and Environmental Risk within its more than 540 Credit Unions.
For next years it is expected to continue working with CONAFIPS and partners in the monitoring for the green loan allocations. In addition, the promotion of other financial tools with the Finance Sector (such as bonds) will be carried out.