Yasuni - FAQ

8/13/2019 Yasuni - FAQ

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YASUNITTFAQs1)WhatistheYasunITTTrustFund?

The Yasun ITT Trust Fund, established by the Government of Ecuador and the United Nations

Development Programme (UNDP) on August 3 2010, exists to receive andmanage contributions in

support of Ecuadors historic decision to forego extracting the 846 million barrels of oil in Yasun

NationalParksIshpingoTambocochaTiputini(ITT)oilfields.

The oil is located underneath one of the most biodiverse regions of the world (a UNESCO World

BiosphereReserve),andEcuador issacrificing thepotentialoil revenues (currentlyestimatedatmore

than USD $10 billion) for the sake of global ecological conservation, protection of biodiversity and

respectoftherightsandculturesof indigenouspeople.Tooffsetaportionofthe loss,andtocreatea

spiritof

global

co

responsibility

in

addressing

environmental

challenges,

Ecuador

is

asking

for

support

fromtheinternationalcommunity.

2)WhyshouldIcare?

YoushouldsupportYasunifyoubelievethatwehaveacollectiveresponsibilitytoprotectandpreserve

allspeciesoflifearoundtheworld,andthatashiftawayfrompollutionheavynaturalresourcessuchas

oilandtowardscleanandrenewableenergysourcesiscrucialforthelongtermhealthofourplanet.

As theneed to consumeearthsdwindlingnatural resources growseach year, theworldsplant and

animallifearecomingunderincreasingthreatsofdestruction.Nowhereisthisthreatmoredirethanin

Ecuador.Ecuador

is

one

of

Conversation

Internationals

17

megadiverse

countries,

and

Yasun

National Park isoneof themost biodiverseplaceson earth. In it, SouthAmericas amphibian, bird,

mammal,andvascularplantdiversityallreachtheirhighest levels.Asinglehectare inYasuncontains

morespeciesoftreethancanbefoundinalloftheUnitedStatesandCanada.Theparkisalsohometo

twoindigenoustribeslivinginvoluntaryseclusion,theTagaeriandTaromenane.

In addition to the dangers facing the natural ecosystem, drilling for oil in Yasunwould significantly

worsentheeffectsofclimatechange.Drillingwouldresult inthereleaseof407millionmetrictonsof

carbondioxideemissions into theatmosphere,and theresultingdeforestationwould releaseanother

800millionmetrictons.

A drilling ban will preserve biological diversity, protect the indigenous peoples, and prevent the

exacerbationofclimatechange.Thereisnoquestionthatthisvitalecologicalhabitatmustbepreserved.

3)WhoalreadysupportstheYasunITTFund?


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InadditiontobeingsupportedbytheUnitedNationsSecretaryGeneralandbeingadministeredbythe

UnitedNationsDevelopmentProgramme,Yasun issupportedby leadingenvironmentalists,scientists,

NobelLaureates,worldleaders,andcelebritiesfromaroundtheworld.

AmongthesupportersareNobelPeaceLaureatessuchasMuhammadYunus,DesmondTutu,Rigoberta

Menchu,Dr.

Eric

Chivian,

and

Jody

Williams;

Nobel

Laureate

in

Medicine

Rita

Levi

Montalcini;

ex

PresidentsMikhailGorbachev(formerUSSR),FelipeGonzalez(Spain),FernandoHenriqueCardoso

(Brazil),andRicardoLagos(Chile);PrinceCharlesofGreatBritain;DanielleMitterrand,Presidentofthe

FranceLibertesFoundation.TheinitiativehasalsoreceivedtheofficialsupportoftheGerman

Parliament,withunanimoussupportfromallthepoliticalparties,aswellastheEuropeanUnion,and

otherinternationalorganizationssuchasInterAmericandevelopmentBank(IDB),AndeanDevelopment

Corporation(CAF),theOrganizationofPetroleumExportingCountries(OPEC),SouthAmericanUnionof

Nations(UNSAR),AndeanCommunityofNations(CAN),OrganizationofAmericanStates(OAS),

InternationalUnionforConservationofNatureandNaturalResources(IUCN),andvariousindigenous

organizationsandecologicalgroupsinEcuador.

4)Howmuchmoneyneedstoberaised?Whythisamount?

WhenPresidentRafaelCorreaoriginallyproposedthisplanin2007,theoilintheITTfieldswasvaluedat

$7.2billion.Ecuadorpledgedtonotdrilliftheinternationalcommunitywouldsharewithitthecostof

thelostrevenue.Thegoalwehopetoreachby2024istherefore$3.6billion.

Ecuadorisseekingsupportfromgovernments,foundations,theprivatesector,andindividualstoreach

thisgoal.Thebalanceofthelostrevenue,currentlyestimatedatmorethan$5billionbasedoncurrent

oilprices,willbeEcuadorscontributiontotheworld.

The

Fund

needs

to

receive

$100

million

by

December

31,

2011,

to

prove

the

plans

viability.

If

it

does

not

receivethisamount,accordingtotheYasuniTrustFundAgreementsignedwithUNDPthegovernment

mayterminatethishistoricinitiative,inwhichcaseithasguaranteedtorefundthecontributors.

5)Wherewillthedonatedmoneygo?Whatwillitbeusedfor?

Ecuadorrecognizesthedangersthatafossilfuelbasedeconomyposestotheenvironment. Therefore,

moneyraisedwillbeusedtorevolutionizetheEcuadorianenergysectorbyinvestinginclean,renewable

sourcesofenergy likewind, solar,andhydroelectric.The investment inenvironmentally friendlyand

socially inclusive renewable energy projects will assist Ecuador in addressing climate change and

sustainabledevelopmentchallenges,andenableittograduallymodifyitsentireenergymatrix.

Fundswillalsobeusedformassiveprogramsofreforestationandnaturalforestrecovery.Deforestation

isadirectcauseofglobalwarming,as it leadstothereductionofcarbonabsorptionbyplant life(and

subsequent release of oxygen during the process of photosynthesis). Therefore, in addition to

preserving theunderground reservesof carbonwhichwontbe released into theatmosphereduring

drilling,programsofreforestationwillguaranteemoreCO2beingabsorbedfromtheatmosphere.


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TheYasun ITT initiative isaholisticand revolutionaryproposalbecause inaddition toaddressing the

problemofusing carbon asanenergy source, italso aspires to reducepovertyand inequality in the

country.Itprioritizestheinvestmentineducation,training,health,andthedevelopmentofsustainable

technologiesandnonextractiveeconomicactivitiesthatwill favorthepoorestandmostmarginalized

sectorsofEcuadoriansociety.Thisforwardlookinginitiativethereforeguaranteesthattheraisedfunds

beused

to

boost

both

environmental

and

economic

recovery.

Formoredetailed information,pleasereadPurpose,PrinciplesandStructureoftheYasunFundon

theofficialTrustFundwebsite,http://mdtf.undp.org/Yasun

6) Since the amount is so large, most of it needs to be done through bilateral government

agreements. Whydowefundraisefromprivatecompaniesandindividuals?

WhileYasunNationalParkislocatedinEcuador,ecologicalpreservation,globalwarming,theprotection

ofindigenous

peoples,

and

the

economics

of

the

energy

sector

are

issues

that

affect

us

all.

The

private

sectorandindividualscanbeapowerfulforceforgoodwhenunitedbehindaspecificcause. Peoplethe

worldoverrecognizethevalueofsavingtheYasunRainforest. Bysharingtheburdenthroughoutthe

world,welessenthestrainononegroupandincreasethechancesforallofustoreachourgoal.Thatis

whyoneindividual,aninvestmentbankerinNewYorkdonatedherannualsalarytotheYasuniFund.

7)Howwillthegovernmentguaranteetheoilnotbeingexploited?

Inexchangeforcontributions,theEcuadoriangovernmentwillprovideaguaranteetomaintaintheITT

fieldoilreservesinthegroundindefinitely. Thegovernmentwillissueguaranteecertificates,knownas

YasunGuaranteeCertificates(CGYs),inUSdollarsequivalenttothefacevalueofeachcontribution.

Wherethecontributionisbelow$50,0001,itshallconstituteadonationtotheYasunITTTrustFundand

willnotentitlethecontributortoCGYs.However,anacknowledgementcertificateforthosecontributing

below$50,000willautomaticallybesent.

ThemaximumtotalamountofCGYsissuedbythegovernmentwillbeequivalenttothevalueofatotal

of407millionmetrictonsofCO2notemittedasaresultofpreservingtheYasun ITToilreserves.The

CGY isan instrumentthatdoesnotearn interestanddoesnothaveanexpirationormaturitydateas

longasthegovernmentmaintainsitscommitmentnottoexploittheYasunITToilreserves.

8)Whathappensifthegovernmentdoesdrillinthefuture?

1WhiletheYasuniITTTORestablishedathresholdof$100,000forissuingtheYasuniGuaranteeCertificates

(CGYs),theYasuniITTTrustFundSteeringCommitteedecidedon23September2011toreducethethreshold

amountto$50,000.


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EcuadorhascommitteditselftokeepingtheoilunderYasuninthegroundindefinitely. However,ifthe

internationalcommunitycannotreach$100millionbytheendofthisyear,Ecuadormayhavenochoice

buttoexploititscountrysnaturalresourcesforthesakeofthewelfareofitspeople.

In exchange for the contributions received, theGovernment of Ecuadorwill provide a guarantee to

maintainthe

ITT

field

oil

reserves,

within

the

National

Park,

underground

indefinitely

by

issuing

to

contributors Yasuni Guarantee Certificates (CGYs) equivalent to the face value of contributions for

contributionsofUS$50,000andabove.TheCGYs,whicharenationallegalobligationsrecognizedbythe

EcuadorAssemblyasstatebonds,willincludethemetrictonsofCO2avoided.

Intheunlikelyscenariothatinthefuture,thegovernmentofEcuadordecidestoextractoilfromtheITT

field,theCGYswillbemaderedeemableandtheStatewillloseownershipoftheraisedfunds,whichwill

betransferredbacktothecontributors.

Whereacontribution isbelowUS$50,000, itwillbeconsideredasadonationtotheYasuniFundand

willnotentitleaContributor toCGYs.The sumof contributionsbelow theCGYs requirement, in the

unlikelyscenario

of

oil

extraction,

will

be

used

for

social

programmes

benefiting

the

areas

inhabitants.

9)Whoisgoingtomanagethemoneyandmakesureitisusedproperly?

The Yasun ITT Trust Fund,which has a Capital FundWindow and a Revenue FundWindow,willbe

administeredbytheMultiPartnerTrustFundOffice(MPTFOffice)oftheUnitedNationsDevelopment

Programme (UNDP). Itwill be governed and overseen by an eightperson Steering Committee. The

Steering Committee members will include three representatives of the Government, two

representatives of contributing countries and one Ecuadorian civil society representative and two

membersofUNDP.

TheUNDPMPTFOfficehasastrong recordof transparentandaccountableadministrationofover40

MultiDonorTrustFundsoperating inover80countrieswithover$5.5billion incontributionsreceived

frommorethan70donorsanddevelopmentpartnerswhichcanbeviewedathttp://mptf.undp.org.For

moreinformationabouttheYasuniTrustFundpleaseseehttp://mptf.undp.org/Yasun

10)Howmuchmoneyhasbeenraisedfromgovernmentsandtheprivatesectorsofar?

TheinformationonthesumofindividualdonationsaswellasonthecontributionsoftheGovernments

ispostedtotheCapitalFundWindowpageoftheUNDPMPTFOfficeswebsiteabouttheYasuniTrust

Fund(pleasevisithttp://mptf.undp.org/factsheet/fund/3EYC0).

11)Inwhatcurrencymustdonationsbemade?

The donations can bemade inUS dollars or any other convertible currency.Donationsof less than

$100,000 can be made through the online portal, and amounts are listed in US dollars:

https://www.mptfdonations.org/


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TheequivalentofaUSdollarvalueofacontributionpayment, ifacreditcardmanaged incurrencies

otherthanUnitedStatesdollars,willbedeterminedbytheexchange rateofthecreditcardoperator

(similartootherpurchasesthatyoumakewiththecreditcard,ifyouaretravellingabroad).TheUNDP

willnotabsorbgainsorlossesoncurrencyexchanges.Suchamountswillincreaseordecreasethefunds

available for disbursements to the Government Coordinating Entity, and the Recipient and

ImplementingOrganizations.

Fordonationsofmorethan$100,000,pleasevisitthetrustfundhomepagehttp://mdtf.undp.org/Yasun

12)CanIdeclaremydonationastaxdeductibleonmytaxreturn?

ForUS contributors toYasuni Fund, taxdeduction facility is available through EarthDayNetwork at

http://www.earthday.org/campaign/saveyasuninationalpark.

13)WillmynameandthesumIhavedonatedbepubliclydisplayed?

Thenamesofindividualcontributorswillbepublished(ifindividualsagreetoreleasesuchinformation)

inthePeriodicReportsonIndividualDonationsthatwillbepostedontheUNDPYasuniITTWebsite.

14)WhenwillitbedecidedwhethertheInitiativeworksornot?

ThegovernmentofEcuadorhasset31December2011,asthedeadlineforraising$100million. Ifthe

international community has by this date not adequately supported the Yasun ITT initiative, the

governmentmaydeemtheInitiativewasnotembracedbythe internationalcommunityandthemove

towardsdrillingmaybeunstoppable.

15)Whowilldecidewherethemoneyisspent?

TheFund

will

be

governed

and

overseen

by

an

eight

person

Steering

Committee,

which

will

include

threerepresentativesoftheEcuadorianGovernment,tworepresentativesofcontributingcountries,one

EcuadoriancivilsocietyrepresentativeandtworepresentativesofUNDP.

AstheGovernmentdesignatedGovernmentCoordinatingEntity, theMinistryofHeritagethrough the

Yasun ITT Coordination Office, in cooperation with the National Secretary of Planning and

Development,shallberesponsibleandaccountablefortheeffectivedevelopment,implementationand

monitoringandevaluationoftheYasunFundportfolioimplementedbynationalentities.

The Government Coordinating entity will assume, on behalf of the government, full financial and

programmatic

accountability

for

the

funds

disbursed

to

the

Recipient

and

Implementing

organizations

by theUNDP, in accordancewith the decision of the Steering Committee and the objectives of the

YasuniFundTermsofReference(seehttp://mdtf.undp.org/document/download/4930).

16)WhatrequirementsmustaprojectmeettobefundedbytheYasunITTTrustFund?

Theprocessandcriteriafordeterminingthecompositionoftheportfolioandauthorizingdevelopment

of individual projects shall be determined by the government, according to the established policy,


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prioritiesandproceduresoftheYasunFundandthenational investmentproceduresand in linewith

theYasuniITTTrustFundTOR.

Additionally, the Technical Secretariat, an impartial entity providing administrative, technical and

substantive support to the Steering Committee, shall conduct a comprehensive, independent and

impartialtechnical

appraisal

of

each

Yasun

Fund

Project

Proposal,

based

on

criteria

developed

in

collaborationwiththeGovernmentCoordinatingEntityandapprovedbytheSteeringCommittee.The

appraisal shall include a reviewof the financial, technical andperformance elementsof the activity,

socialandenvironmentalimpactstudies,andassessmentoftheinstitutionalcapacityoftherecipientor

implementingorganization.

17)WherecanIapplytohavemyprojectfundedbytheYasunITTTrustFund?

TheYasuni ITTTrust Fundwillnot financeprojects submittedby individualsunless suchprojects are

vettedby

the

Government

Coordinating

Organization

as

apriority

activity

and

are

incorporated

into

the

Governmentsubmissionsofprojects.

Project Proposals shall be presented to the Technical Secretariat for appraisal, with all relevant

supportingdocumentation.DecisiononFundingAllocationofproposalsshallbedoneby theSteering

CommitteeoftheYasuniITTTrustFund.

Sincemanycleanenergyprojectswouldinvolvethenewtechnologiesandequipment,theGovernment

willberelyingonprivatesectorcompaniesthatcouldbecontractedtodothat.

18)WhatdotheEcuadorianpeoplethinkabouttheplan?

PreservingYasunwillrequireamonumentalsacrificefromtheEcuadorianpeople,athirdofwhomlive

belowthepovertyline,andwhostandtolosemorethan$10billioninnationalrevenue.

Nonetheless, the initiative enjoys broad support from all segments of Ecuadorian society. After

EcuadorianPresidentRafaelCorreaannouncedtheproposalattheUNin2007,pollingindicated78%of

EcuadoriancitizenssupporttheInitiative.

Inreturn,justasEcuador iswillingtocollectivelysacrificefortheworld, it isaskingtheworldtocome

togetherandreaffirm itssupport forbiologicaldiversitybycontributingtooffsetaportionofthe lost

revenue.

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Yasuni - FAQ