Ecuador Green and Resilient Recovery (EGARR) DPF

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The development objectives of the First Green and Resilient Recovery Development Policy Loan in Ecuador assist the government in its agenda to tackle selected structural challenges to foster growth, inclusion, job creation, and climate resilience, strengthen low-carbon development and help realize its commitment to become carbon neutral by 2050. The first pillar tackles selected structural challenges to foster growth, inclusion, job creation, and climate resilience. It supports selected measures to: (i) make fiscal management more inclusive and resilient by increasing tax collection in an inclusive, transparent, and green manner and strengthening the institutional framework to deal with climate-related challenges; (ii) foster growth and labor opportunities by reducing trade barriers, and reducing rigidities in labor markets; and (iii) strengthen mechanisms to support the most vulnerable groups such as people at the bottom of the income distribution and those exposed to malnutrition. The second pillar strengthens low-carbon development. It does so by: (i) promoting a greener and more resilient energy sector by fostering private investment in developing NCRE generation, including distributed renewable generation, 13 fostering energy efficiency investments, and promoting a decarbonized transport sector; and (ii) enhancing measurement and reporting of GHG mitigation initiatives to better monitor decarbonization progress, and help develop voluntary carbon markets.