ECUADOR’S YASUNÍ-ITT INITIATIVE: A PROMISE FOR THE FUTURE

The Yasuní-ITT initiative was proposed by the Government of Ecuador in 2007 as a new model for achieving climate regulation, conservation of biodiversity, protection of indigenous peoples and sustainable development. The initiative seeks to receive financial compensation from the international community, in exchange for maintaining 846 million barrels of oil underground in perpetuity. This mechanism challenges existing climate regulation and development paradigms by offering a supply oriented climate regulation policy. Large scale financial contributions to the initiative are issued with non-expiring, redeemable guarantee certificates that allow the bearer to claim back the contribution if the ITT block is ever exploited. The fund is seeking to capture $3.6 billion dollars by the year 2020; if successful this means that Ecuador would be forgoing approximately half of the profits it would otherwise receive from extraction of the oil. This research examines the legal and political structures that are being created as part of the initiatives’ development, promotion and implementation, in order to assess the immediate and long term viability of the initiative as well as its effectiveness in achieving its overall goals. In order to better understand some of the key issues both document analysis and interview techniques were used to assess the details of the proposed mechanisms as well as the key political issues that surround its implementation. It was found that whilst the initiative is for the most part, clearly structured, there are some specific issues which are currently acting as barriers to commitment of funds from external parties. These are primarily centred on political perceptions of Ecuador’s ability to guarantee non-exploitation, or at least the return of funds if exploitation does occur, at varying timescales. Also the current threshold for issuance of guarantee certificates is likely a considerable disincentive for individuals and small organisations to contribute to the initiative