In his weekly televised speeches, President Correa announced on Saturday, January 9, 2010, his anger over the “shameful conditions” donor countries have imposed on Ecuador. “[They] come to impose conditions … they think we’re still a colony … there is a terrible arrogance … keep your millions … keep your money and in June we are going to begin exploiting ITT,” he declared to his audience.
In reaction, Roque Sevilla, ex-mayor of Quito and environmentalist, announced the following Monday that he was resigning as President of the commission in charge of rallying international support and funding for the Yasuni-ITT project.
Yasuni Funding
The initiative is to keep the oil underground and prevent the emission of 407 million metric tons of CO2, conserve Yasuni park’s biodiversity, and its culture, supporting the voluntary isolation of 2 indigenous communities: the Tagaeri and the Taromenane.
The Yasuni Initiative would have donors compensate Ecuador for the oil forgone, estimated by the government as 20% of the country’s total oil reserves, or 846 million barrels. Instead of oil revenues, Ecuador would receive funding from foreign governments, international multilateral organizations, civil society organizations, private sector companies, and global citizens.
In return for contributions, the Ecuadorian government would issue a guarantee not to exploit Yasuni oil in the form of Yasuni Guarantee Certificates (CGYs in Spanish), based on the nominal value of contributions.
Contributions would be deposited in a trust fund and the interest from the capital destined toward programs for sustainable development, as part of the government’s National Development Plan. Projects include the reforestation of 1 million hectares, social projects for the communities in the area, and a shift from oil dependency to renewable energy, such as solar and geothermal, to satisfy the country’s national energy consumption.
Who Manages the Yasuni Trust Fund
From Yasuni’s inception, the Ecuadorian government has asserted that major donors would be represented on the board of the trust fund. In an article published by El Comercio on January 11, 2010, Sevilla argues that from the beginning Ecuador proposed the idea of an international trust fund.
The government report “Yasuni-ITT Initiative: A Big Idea from a Small Country,” supports Sevilla and states that “The revenue from the sale of the CGYs will be deposited into an international trust fund – which will have a Board of Trustees comprised of the major donors to the Initiative, the Ecuadorian government and representatives from Ecuadorian civil society – which will work to ensure that the trust fund complies with the mandate of investing in previously established areas.”
Sevilla’s "Marathonic" Effort
President Correa’s Saturday declarations shocked and confused those who have been working diligently to promote the Yasuni Initiative. During a televised interview on January 13, 2 days after his resignation, Roque Sevilla was asked why he resigned. He responded that the reason was the President’s declarations on Saturday. Asked if he had failed in his work, Sevilla responded: “Exactly the contrary; it has been an extraordinary success.”
Sevilla outlined his team’s “marathonic effort” to sell Yasuni. As president of the commission, he traveled to countries including the United States, Germany, and Belgium to address and negotiate with their governments. By December 2009, El Comercio reports (in Roque Sevilla renunció a la Iniciative Yasuni-ITT) that Germany, Spain, and Belgium had promised between $972 and $1,232 million over 13 years, and that France and Sweden were offering $532 million.
In the interview Sevilla explains that reaching the goal of 3.5 billion by the December 2010 deadline set by the President was achievable, based on the praise and acceptance he and his team had encountered throughout their meetings and negotiations.
President Correa, however, suddenly cut the deadline to June 2010 with what Sevilla describes as “no reason or justification.” He fears that the President’s declarations are about “very important pressures from the petroleum sector.”
The newspaper Hoy (January 13, 2010) reports that Alberto Acosta, ex-assemblyman and once supporter of Correa, classified Correa’s comments as “shameful” and quotes Acosta: “What happened to the President of the Republic […] is he being pressured by very powerful groups in the petroleum industry?”
National Referendum
Correa's remarks have prompted an important question: On which side does President Correa really stand? In the face of this doubt, Roque Sevilla has pronounced that the future of Yasuni should not be decided by the president. He advocates the calling of a national referendum to have Ecuadorians decide whether the country should continue with petroleum politics and its associated pollution and corruption or if Ecuador should adopt the progressive stance of a post-petroleum economy.
References
(2010, January 13). “Canciller renuncia por el Yasuni-ITT.” [Electronic version] Hoy.
(2010, January 11). “Roque Sevilla renunció a la Iniciativa Yasuni-ITT.” [Electronic version] El Comercio.
Larrea, Carlos, “Yasuni-ITT Initiative: A Big Idea from a Small Country,” Ministerio del Ambiente, Ministerio de Relaciones Exteriores, Comercio e Integración. Available in PDF format from Yasuni-ITT.
(2010, January 13). Interview with Roque Sevilla. Noticiero Contextos. TV Telerama.
Sandra Gross - Having lived in Ecuador for over 10 years, Sandra is familiar with change, charm, and contrast. From Pacific coastlines to the Amazon ...
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