Triangular cooperation between Germany, Mexico and Ecuador: Recovery – Sustainability of Economies in Transition
Title: Re-SET: Recovery – Sustainability of Economies in Transition
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Mexico, Ecuador
Lead executing agency: Mexican Agency for International Development Cooperation (AMEXCID), Ministry of Foreign Affairs and Human Mobility (MREMH)
Overall term: 2021 to 2023
The Development Bank of Ecuador (BDE) has been planning to become a green bank since 2018. Since then, it has worked with two intergovernmental organisations to build new capacities and integrate climate change concepts into its work.
In 2019, the Ecuadorian bank paid initial visits to the Development Bank of Mexico (BANOBRAS) to discuss energy funding. Since 2020, the two banks have had plans to create financial solutions for energy projects, seek shared financing mechanisms and prepare a sustainable portfolio. The two banks are making use of the current economic situation to gain accreditation for the Green Climate Fund (GCF).
Both countries are facing major challenges in mobilising funds for a productive, sustainable and inclusive green economic recovery from the COVID-19 pandemic.
The development banks of Mexico and Ecuador exchange ideas and best practices and thereby support a green recovery after the COVID-19 pandemic.
The triangular cooperation includes the following activities:
- Developing financial instruments to respond to the consequences of the coronavirus pandemic with long-term measures:
Strategic and productive fields have been prioritised here, which the development banks in both countries take into account. The project also builds capacities to allow the use of risk analyses for COVID-19 and for consequences of climate change. Moreover, it identifies and classifies the green portfolio in the two promotional banks.
- Creating access to international climate financing through regeneration of the local economy:
To do this, the project selects international funds for emergency financing, which the two development banks can use. It also determines the funding requirements of the regional governments for a possible climate basket fund. The project supports the development banks with qualifying for international funding and the Green Climate Fund crediting process.
Last update: June 2021