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The conservation of the Ecuadorian Amazon is fundamental to preserving one of the richest and most diverse ecosystems on the planet. This territory is home to approximately 10% of the world’s biodiversity, with species of flora and fauna found nowhere else. In addition, the region is home to Indigenous peoples and communities that have lived sustainably with nature for centuries, providing essential traditional knowledge for the management of natural resources.
The Amazon Biocorridor is an innovative territorial management model for the entire Ecuadorian Amazon that promotes governance and sustainable management of natural landscapes and freshwater resources in the region. It integrates biodiversity conservation and sustainable development objectives, aligning with Ecuador’s sectoral public policies.
In the Amazon Biocorridor there are areas clearly identified as priority areas for conservation thanks to the development of a conservation portfolio that integrates advanced models of remaining richness distribution for key species (amphibians, birds, fish, flora, mammals and reptiles) and spatial variables that include ecosystems, anthropogenic threats and ecosystem services. The target areas include 1.8 million hectares that will be incorporated into new in situ conservation mechanisms, 4.6 million hectares whose management will be improved, and 18,000 kilometers of protected rivers. This approach allows for efficient use of resources and maximizes the environmental and social impact of the program, ensuring ecosystem connectivity, climate change mitigation and the preservation of essential services for Amazonian communities.
Debt conversions for nature and climate represent an innovative financial strategy that allows countries like Ecuador to manage their external debt burden while allocating significant resources to environmental conservation. This mechanism implies that a portion of the national debt is converted into a new debt with better conditions that are obtained through the support of the partners (IDB, DFC and TNC). Savings are directed to the fulfillment of conservation commitments, such as the implementation of the Amazon Biocorridor Program. By reducing international financial obligations, the country frees up funds that can be invested directly in the protection and sustainable management of its valuable ecosystems in the Amazon.
From the Government of Ecuador, the conversion was led by the Ministry of Economy and Finance – MEF and the Ministry of Environment, Water and Ecological Transition – MAATE. The Ministry of Foreign Affairs and Human Mobility – Cancillería – participated actively, especially in the design of the BCA Fund. The Inter-American Development Bank – IDB – issued a USD 155 million guarantee and the United States International Development Finance Corporation (DFC) provided political risk insurance of up to USD 1 billion for the new financing. The support of IDB and DFC were key for the new debt to have better terms for Ecuador, allowing savings compared to the previous debt, which in part are directed to the BCA Fund for Amazon conservation. The Nature Conservancy – TNC – played the role of facilitator and technical assistant to the Program, providing technical advice on conservation and moderating the credit enhancement.
The Amazon Biocorridor Fund will allocate its resources to projects and initiatives implemented by governmental and non-governmental organizations that promote conservation and sustainable development in the Ecuadorian Amazon, following priority thematic lines that seek to: support the fulfillment of the Conservation Commitments assumed by the Republic of Ecuador in the Ecuadorian Amazon within the framework of the Amazon Biocorridor; support the implementation of activities related to the Amazon Biocorridor; support the sustainable development of the communes, communities, Indigenous peoples and nationalities that inhabit the Ecuadorian Amazon; support the management of Ecuador’s National System of Protected Areas and areas under other in situ conservation mechanisms in the Ecuadorian Amazon; and contribute to sustainable development, conservation and climate change mitigation or adaptation in the Ecuadorian Amazon.
The BCA Fund was designed to manage the debt conversion resources, but also to maintain ongoing efforts to mobilize additional resources. The BCA Fund has the flexibility to receive domestic and international resources from different sources and donors. In addition, the debt conversion created an endowment fund, which will be fed annually by the debt conversion proceeds and invested in the financial market to generate returns that will be reinvested in the same endowment fund for 17 years. By 2042, it is expected that this endowment fund will have a capital of approximately USD135 million and will be able to generate annual returns that will continue to finance projects under the Amazon Biocorridor Program.
International and local organizations may participate in the financing of the Amazon Biocorridor Fund through public or private donations, bequests and financial contributions that are integrated into the Fund’s assets to support its overall objective of conservation and sustainable development of the Ecuadorian Amazon. These donations may come from various sources and can be subject to specific conditions imposed by the donors, as long as they do not conflict with related legislation, the Fund’s objectives and policies, or compromise its fiscal status. By contributing resources, organizations are able to contribute directly and effectively to conservation projects, strengthening local communities and sustainable management of Amazonian ecosystems, ensuring that their funds are used transparently and in line with international best practices in environmental and social matters.
To be eligible, projects must align with the Fund’s thematic priorities, demonstrate technical and financial viability, and be implemented by eligible organizations (see next answer).
Projects submitted by governmental organizations will not compete for funds with projects submitted by civil society organizations. Government projects will receive a maximum of 40% of the annual resources, while projects from civil society organizations will receive up to 45% of the BCA Fund’s annual resources.
Projects implemented by non-governmental organizations must meet the criteria established in the specific calls for proposals. These criteria will be defined by a Technical Committee, approved by the BCA Fund’s Board, and communicated in the calls for proposals. Calls will also detail requirements regarding the organizations that may apply to receive resources and eligible and ineligible activities. The BCA Fund will publish its Grant Manual prior to the launch of the calls for proposals.
Organizations that may apply include:
The BCA Fund will spend the first half of 2025 structuring its operation. This includes hiring equipment and service providers, setting up its systems (accounting, management, etc.), opening offices, finalizing its policies and procedures, publishing its Grants Manual, developing and publishing its Environmental and Social Management System. It is expected that the Fund will be ready to start allocating resources to projects in the second half of 2025.
The BCA Fund will dedicate a maximum of 15% to cover its administrative costs, which include salaries of its staff, offices, service providers, audits, reports, communication, among other recurrent expenses. The remaining 85% will be dedicated to project financing, where a maximum of 40% will go to projects implemented by governmental entities and a minimum of 45% to projects implemented by civil society entities, including non-governmental organizations, research centers, indigenous peoples and nationalities, and others.
The BCA Fund is managed by a Board of Directors comprised of Government Affiliated and Non-Government Affiliated Directors. In addition, the Executive Director will play a key role as administrator and legal representative. The Government Directors will be appointed by Ecuadorian government institutions, while the Non-Government Affiliated Directors will include representatives from sectors such as academia, social organizations, indigenous communities, international cooperation and the financial sector.
The selection of the Board of Directors combines nomination and election processes:
Yes, the mechanisms for renewal and change are clearly established in the Fund’s Bylaws (link to Bylaws) and in its Operating Manual:
The Board of Directors meets at least four times a year in ordinary meetings. In addition, extraordinary meetings may be called as necessary, called by the Co-Chairs or three Directors, to address urgent or strategic issues.
The Fund has a Conflicts of Interest Policy that strictly applies to all Directors, committee members, staff and consultants. All must sign a declaration upon assuming their position or function, disclosing possible conflicts (this is part of the established requirements). Directors involved in a conflict may not participate or vote on decisions related to the issue. The Board of Directors and committees continuously monitor to prevent personal interests from interfering with the governance and operation of the Fund.
The BCA Fund Secretariat team follows up on all projects through reports prepared by each beneficiary organization, project visits and external evaluations. The team reports frequently to the Board of Directors and to the Committees established by the Board (e.g., Amazon Biocorridor Technical Committee and Finance Committee). In addition, the BCA Fund will annually hire external auditors from leading global auditing firms (known as the Big 4) and publish their audit reports which will be complemented by annual activity reports.
The Board of Directors is accountable to the partners of the debt conversion transaction that generated the initial resources of the BCA Fund, including the Republic of Ecuador, to future donors and to the general public through a transparent reporting system. The BCA Fund will publish annual reports, including audits by external auditors.
The BCA Fund was created in the United States as a result of the requirements of the debt conversion transaction that will provide the resources for the BCA Fund. However, the entire BCA Fund structure – Board of Directors, committees, team, offices and projects – will be exclusively in Ecuador. The BCA Fund’s international structure will support the ongoing mobilization of international resources to complement the debt conversion proceeds and broaden the Fund’s impact.
Not at all. The U.S. government has no control over the management of the BCA Fund. The Fund is controlled by its Board of Directors. The BCA Fund’s project selection criteria will be aligned with the priorities established by the Government of the Republic of Ecuador, which has sovereignty over the Ecuadorian Amazon.
The BCA Fund is independent from the Ecuadorian government, but includes the Ecuadorian government in its governance system and has its purpose and thematic priorities aligned with Ecuador’s public policies. The BCA Fund’s autonomy allows it to provide continuity even during changes of government and ensures that resources remain focused on the Fund’s stated purpose and thematic priorities over the long term. In addition, not being a public institution, the BCA Fund has the flexibility to mobilize resources from diverse sources, adopt its own guidelines and procedures, and invest its resources in the financial market to generate returns that will support its continuity. Although the BCA Fund is not public, its bylaws adopt accountability and transparency practices similar to those of the public sector, through the publication of its policies, annual reports and audits.
