The Inter-American Development Bank to Provide $280 Million to Help Ecuador Energy Sector

The Inter-American Development Bank (IDB) has announced that it will provide Ecuador a $280-million (EUR 247.9m) loan to transform, expand and improve its energy mix and increase the use of and access to renewable energy sources in the country.

More precisely, the money will be used for the implementation of numerous policy reforms in order to help the country to reach its climate change goals and consolidate its fiscal and external accounts.

The loan will also support increased efficiency, modernization, innovation and sustainability of the local electricity supply chain as well as energy trading with neighboring countries.

With the present COVID-19 pandemic, Ecuador's fiscal revenue is headed for a major decline, the bank stated.

Although the South American Nation accounts for just 0.08% of the world's greenhouse gas (GHG) emissions, Ecuador wants to reduce its consumption of fossil fuels, IDB noted.