Ecuador votes to stop oil drilling in Amazon national park
Referendum hailed as good for climate democracy will see Ecuador’s crude oil output drop about 12%
21 August 2023 - 21:05
byAlexandra Valencia and Julia Symmes Cobb
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
The Amazon rainforest at Yasuni National Park in Ecuador, July 29 2023. Picture: KAREN TORO/REUTERS
Quito — Ecuadorean referendums to ban oil drilling in a part of the Amazon and mining in a forest outside Quito easily passed, drawing cheers on Monday from indigenous leaders and environmentalists despite warnings from oil and mining groups about billions in lost income.
A ban on oil development in part of the Yasuni Amazon reserve passed with just under 59% approval, with nearly all votes counted. A ban on mining in the Choco Andino forest near Quito has 68% support.
The Yasuni vote — which gives state oil company Petroecuador a year to shutter production in the 43-ITT block — is set to result in the loss of about 12% of Ecuador’s 480,000-barrel-per-day (bpd) crude oil output.
Petroecuador did not immediately respond to a request for comment but has said a "yes" would cost Ecuador $13.8bn in income over the next two decades.
The Yasuni ban will lead to a 1.9% reduction in projected economic growth between this year and 2026, the central bank predicted last week.
Two other Petroecuador blocks in the area are unaffected.
"We have saved their territory, their lives," Leonidas Iza, head of major Indigenous group CONAIE, said in a press release from London-based advocacy group Survival International, referring to uncontacted Tagaeri, Taromenane and Dugakaeri communities.
"This is a major victory for Ecuador’s indigenous movement," said Survival's Sarah Shenker. "Their territories are the best barrier to deforestation."
Referendum was hailed elsewhere as good example of climate democracy in action.
The victory sends a message to investors "including major US banks and asset managers, that the era of unchecked resource extraction is at an end," said Kevin Koenig, of advocacy group Amazon Watch.
A single hectare of the Yasuni has 650 species of trees, as well as hundreds of species of animals, according to the environment ministry.
Both oil and mining guilds have said their industries are needed to shore up the battered economy and that bans would expose the areas to illegal mining and deforestation.
The local Quito referendum will scupper six gold concessions.
Ecuador’s Chamber of Mining has said opposition to mining nationwide is blocking about $1bn in potential investment for the next two years.
Mining was the country’s fourth-largest source of income last year, behind sales of oil, bananas and shrimp, bringing in $2.8bn.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Ecuador votes to stop oil drilling in Amazon national park
Referendum hailed as good for climate democracy will see Ecuador’s crude oil output drop about 12%
Quito — Ecuadorean referendums to ban oil drilling in a part of the Amazon and mining in a forest outside Quito easily passed, drawing cheers on Monday from indigenous leaders and environmentalists despite warnings from oil and mining groups about billions in lost income.
A ban on oil development in part of the Yasuni Amazon reserve passed with just under 59% approval, with nearly all votes counted. A ban on mining in the Choco Andino forest near Quito has 68% support.
The Yasuni vote — which gives state oil company Petroecuador a year to shutter production in the 43-ITT block — is set to result in the loss of about 12% of Ecuador’s 480,000-barrel-per-day (bpd) crude oil output.
Petroecuador did not immediately respond to a request for comment but has said a "yes" would cost Ecuador $13.8bn in income over the next two decades.
The Yasuni ban will lead to a 1.9% reduction in projected economic growth between this year and 2026, the central bank predicted last week.
Two other Petroecuador blocks in the area are unaffected.
"We have saved their territory, their lives," Leonidas Iza, head of major Indigenous group CONAIE, said in a press release from London-based advocacy group Survival International, referring to uncontacted Tagaeri, Taromenane and Dugakaeri communities.
"This is a major victory for Ecuador’s indigenous movement," said Survival's Sarah Shenker. "Their territories are the best barrier to deforestation."
Referendum was hailed elsewhere as good example of climate democracy in action.
The victory sends a message to investors "including major US banks and asset managers, that the era of unchecked resource extraction is at an end," said Kevin Koenig, of advocacy group Amazon Watch.
A single hectare of the Yasuni has 650 species of trees, as well as hundreds of species of animals, according to the environment ministry.
Both oil and mining guilds have said their industries are needed to shore up the battered economy and that bans would expose the areas to illegal mining and deforestation.
The local Quito referendum will scupper six gold concessions.
Ecuador’s Chamber of Mining has said opposition to mining nationwide is blocking about $1bn in potential investment for the next two years.
Mining was the country’s fourth-largest source of income last year, behind sales of oil, bananas and shrimp, bringing in $2.8bn.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Hot seas slow Panama Canal shipping
US judge hands climate win to Montana youth
Biden’s ‘Inflation Reduction Act’ reality check
Gabon finalises first ‘debt-for-nature’ swap
‘Greenlash’ in Europe ahead of elections
No quick fix to reverse Antarctic sea ice loss, scientists say
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.