Ecuador: Diesel subsidy reform crediting program (WB-P515157)

Countries
  • Ecuador
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 30, 2026
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of Ecuador
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ WB website

Updated in EWS Aug 18, 2026

Disclosed by Bank Apr 10, 2026

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the WB, the proposed Operation will support the preparation of the foundations for and piloting of a carbon transaction in Ecuador as the first of its kind of innovative operations in Latin America. It is designed as the first step towards a carbon market and building capacity to manage carbon transactions, underpinned by sector reforms and World Bank Group's overarching support towards energy sector transformation in Ecuador. The climate and carbon funds to be mobilized from the Transformative Carbon Assets Facility (TCAF) will finance the GoE's ambitious energy transition program, helping advance the reform initiatives. The proposed operation mainly comprises two components: (1) Payments for measured, reported and verified emission reductions (ERs) - Climate Finance (2) Payments for measured, reported, and verified Internationally Transferred Mitigation Outcomes (ITMOs) - Carbon Finance. In addition, the operation includes technical assistance which helps close existing institutional gaps, equip the Government with the necessary knowledge, systems, and procedures to manage carbon market activities effectively. The Project would build on previous and ongoing World Bank projects and activities that support fossil fuel pricing reforms and social protection for the poor and vulnerable households in the reforms, i.e. Innovative Carbon Resource Application For Energy Transition (iCRAFT) - P180432 and Innovative Finance for Resilient and Sustainable Energy Transition (iFIRST) - P512264.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
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