The Ecuadorian financial system has a sustainable credit portfolio that stood at USD 3,199 million in 2022. This figure represents a growth of 64% compared to the previous year and is an example of the commitment that the bank has taken in this type of business.
Sustainable financing in Ecuador reached 8.3% of the total amount, while a few years ago it was 1.8%. However, this is still low compared to a total portfolio of more than $41 billion.
In addition, between 2019 and 2023, the bank received $1,945 million in multilateral financing from abroad. This figure includes the issuance of eight climate bonds worth $589 million; Some of them are unique in Latin America due to their way of structuring.
These figures were revealed by the executive president of Asobance, Marco Rodríguez, during the inauguration of the First Sustainable Financing Forum. This event, held at the Hotel Colón in Quito, brought together representatives of the financial system with supervisors and regulators, who were able to discuss global financial options and trends related to the fight against climate change. During the event, topics such as the circular economy, digitalization, support for ecological industries, among others, were discussed.
Rodríguez highlighted the milestones that the Ecuadorian bank has achieved in this process. Thus, on June 20, the Protocol on Sustainable Finance, which was signed in 2016, was renewed. He commented that many people, when the document was signed that year, were skeptical of the scope of this voluntary agreement. However, Ecuador has made important progress in this regard.
Within this strategic work, the implementation of the Environmental and Social Risk Management System (Saras) stood out; adherence of nine Ecuadorian banks to the UNEP FI principles of responsible banking; In addition, two Ecuadorian banks have joined the Banking Alliance for Net Zero Emissions, the latest and strongest commitment of the low-carbon economy; Work was also done on creating 34 sectoral guides for lending, mitigating environmental and social risks.
He also mentioned other key projects, such as the development of a sector taxonomy and the creation of a platform for easier use of sector guides, which are being implemented under the leadership of the Committee for Sustainable Financing of Asobanc and its member banks.
During the forum, different voices were heard about the need to fight climate change. Frouke Hoekstra, a representative of the Dutch Development Bank, congratulated Ecuador on the “historic result” of the popular consultation on Yasuní. He was grateful that the citizens decided to preserve the Amazon rainforest and avoid the emission of greenhouse gases. However, he admitted that for the country this represents a loss of oil revenue of about $1.2 billion.
He spoke about the need to harmonize with the Paris Agreement, which was signed in 2015 and which aims to lower the global temperature by two degrees by 2050. In this context, the bank aims to improve life by 2050. , about 9 billion people will have better conditions around the world.
The bank believes that it can work on business opportunities related to mitigation of climate change, reduction of greenhouse gases, investments in green financing, electric vehicles, energy efficiency in industrial or construction processes. Also ensure that measures to adapt to climate change or reduce vulnerability due to climate change gain momentum.
/cloudfront-us-east-1.images.arcpublishing.com/eluniverso/GC44MKLHVRC7HIYSZNY5MZ6JTE.jpg)
Guadalupe Cabezas, supervisor of Banks (s), emphasized the importance of the forum as a space to discuss financial practices that promote sustainable development, fight against climate change and represent an encounter between the financial and multilateral systems.
Juan Carlos de la Hoz, representative of the Inter-American Development Bank (IDB), asked the financial system to count on financing from this multilateral. He explained that they have recently devoted themselves to issues of environmental protection, energy such as green hydrogen, and even projects to protect the Amazon.
Source: Eluniverso
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
