Country
Ecuador
Local Project Partner
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German Project Partner
ECO Consult GmbH & Co. KG
Donor
GIZ
Duration
01.01.2025 - 31.08.2026
According to the Ecuadorian Ministry of Environment, Water and Ecological Transition (MAATE), livestock farming is the main driver of deforestation in the agricultural sector at 65%, followed by agricultural land use (12%). Livestock farming, shrimp farming, cocoa cultivation and timber production are mainly in the hands of smallholder farmers who sell part of their production on the market. Smallholders clear forest areas and use unsustainable practices to expand their acreage, mostly due to poverty. Most smallholder farmers do not have formal land titles and lack the capital to invest in sustainable agricultural production. The sub-project implemented by ECO Consult and DSIK focuses on strategies for deforestation-free agriculture on the one hand and the provision of credit through local financial institutions for the necessary transformation of smallholder farmers on the other.
DSIK is a junior partner in the consortium with ECO Consult and is only responsible for the part of the project that deals with green finance (the development of strategies for the various agricultural sectors lies entirely with ECO Consult). DSIK, which essentially supports the core project team (ECO Consult) with selected short-term expertise, works with local financial institutions (FIs) to develop suitable loan products for the target group. In addition, both FIs and productors are trained using the Farmers Business Game.
Task
The program supports the development and implementation of participatory regional strategies to promote the competitiveness of sustainable and deforestation-free supply chains. The cross-cutting issues of gender, adaptation to climate change and digitalization are also included. The overall program is managed and controlled by giz. ECO Consult and DSIK have taken on the mandate to work at national level on the development of a national standard for the certification of deforestation-free supply chains. for the certification of deforestation-free livestock farming and advisory services and to work with financial institutions to develop two green credit lines that provide incentives for deforestation-free production for the five selected supply chains in the program.
