Inés María Manzano, Minister of Environment, Water, and Ecological Transition of Ecuador and Eron Bloomgarden, CEO Emergent (LEAF Coalition) at the official signing event in Ecuador, January 29,2025. Photo by Santiago Garcia, EDF.
By Santiago García Lloré, Senior Manager of IPLC and Conservation Partnerships at EDF.
Ecuador is one of nine countries in the Amazon rainforest. It is also known as one of the most biodiverse countries in the world — its unique ecological heritage includes the famous Galápagos Islands.
Following Costa Rica, Ghana, and the State of Para in Brazil, Ecuador signed an Emissions Reduction Purchase Agreement (ERPA) under the LEAF Coalition’s carbon finance framework to reduce 3 million tons of carbon emissions in exchange for $30M. (3 million tons of carbon emissions roughly equal the annual emissions of about 570,000 average passenger cars.)
The deal covers four Ecuadorian jurisdictions and is a shining example of deploying carbon finance that advances equitable participation from diverse groups. In Ecuador’s case, this process has resulted in the inclusion of Afro-Ecuadorian communities, who, like many other Indigenous communities in the region, have traditionally been marginalized. This showcases progress toward a more inclusive and representative model.
EDF has been privileged to support Ecuador in this journey over the past several years. Our efforts have focused on building the technical capacity, policy frameworks, and stakeholder engagement processes needed to bring this ambitious program to life. Here are a few things we’ve learned that are critical to ensuring integrity and bolstering climate ambition.
Workshop with Afro-descendant representatives in Ecuador as part of the development of a benefit-sharing plan. July 2023, Ecuador. Photo by Santiago Garcia, EDF.
- Protecting Ecuador’s Natural Wealth Through Carbon Finance
In 2023, 68.2% of Ecuador’s territory—equivalent to 17.5 million hectares—remains covered by natural landscapes, including 12.8 million hectares of forests and 1.1 million hectares of grasslands. Ecuador is also one of the most biodiverse countries in the world, with 91 types of ecosystems, harboring around 10% of all known species despite covering less than 1% of the Earth’s surface.Mega biodiversity countries like Ecuador have struggled to secure adequate funding for conservation and sustainable resource management. According to the World Bank’s Country Climate Development Report (CCDR) for Ecuador estimates that annual climate investment needs will average $3.7 billion between 2025 and 2050. Under these circumstances, forest finance mechanisms like LEAF provide countries like Ecuador with a vital tool to balance conservation efforts while attracting much-needed investment for forest protection. - Centering Indigenous Leadership and Participation
At COP 27, Ecuador announced its commitment to join the LEAF initiative, highlighting its pledge to ensure the effective participation of IPLC organizations as key partners throughout the process. This process also demonstrates strong commitments to self-determination and meaningful participation of Indigenous communities. In Ecuador, Indigenous Peoples, representing over one million individuals across 14 nationalities (IWGIA, 2023), play a vital role in protecting forest territories. To ensure their inclusion in the LEAF Initiative, the government, with the support of different organizations such as EDF, Ecopar, and Climate Law and Policy, organized a series of workshops to create a first phase of a benefit-sharing plan (BSP) focused on IPLCs and Afro-descendant communities within the context of carbon compensation transactions in Ecuador.Between 2022 and 2023, 12 regional workshops were held, engaging more than 500 participants and involving over 18 IPLC organizations, including the Confederation of Indigenous Nationalities of the Ecuadorian Amazon (CONFENIAE) and the Afro-Ecuadorian communities of northern Esmeraldas (CANE), the main Indigenous and Afro-Ecuadorian organizations, respectively. These workshops provided essential information on carbon credit programs, benefit-sharing mechanisms, the TREES standard, and social and environmental safeguards, aligning with the Cancun Safeguards and the Free, Prior and Informed Consent (FPIC) principles. They also emphasized IPLCs’ rights to self-determination and meaningful consultation. The BSP is expected to conclude by the end of 2025 and include other REDD+ stakeholders.
- A Purchase Agreement is a Starting Point, Not an Endpoint.
Developing a high-integrity forest carbon program is no small task. It requires significant upfront investments, which are often underappreciated in carbon market transactions. This ERPA is a starting point, not an endpoint. For those invested in making the forest carbon marketplace a success, this is the time to lean in and provide the bridge financing needed to sustain and scale this progress. High-quality forest carbon crediting programs like Ecuador’s, need and deserve robust support to reach their full potential.
José Esach, President of the Ecuadorian Confederation of Indigenous Nationalities, emphasized the importance of inclusive and fair practices in the ERPA agreement:
International funding from governments and companies can help protect Ecuador’s forests, and we welcome the signing of this agreement with LEAF. However, it must be done the right way—respecting the rights of Indigenous Peoples and Local Communities, listening to our voices, and ensuring a fair distribution of benefits for those who protect the forests.
Ecuador’s ERPA announcement reflects a broader truth: realizing the promise of JREDD+ requires commitment, collaboration, and resources. The foundation has been set, and the opportunity to strengthen and expand this effort is now. This is the moment to act for those serious about scaling forest climate action.