GCPF Partnership: Guiding Banco Pichincha’s Green Evolution
Ecuador’s diverse topography and position on the equator make it highly vulnerable to extreme climate events, particularly those driven by the El Niño and La Niña phenomena. Flooding, landslides, droughts, glacial retreat, and deforestation in the Amazon all contribute to the country’s climate challenges.
Despite these challenges, Ecuador has made significant strides in its energy transition. While 78% of the energy consumed in the country comes from oil products, electricity generation is dominated by hydropower, accounting for 80%. Recently, the instability of hydropower plants and volatility in oil prices have driven increased interest and investment in renewable energy (RE) and energy efficiency (EE) projects, supported by government incentives.
The financial system’s influence on the sustainable development of the planet is of utmost importance. I am convinced this industry is called to lead.
David Grey, Sustainability and Public Affairs Manager, Banco Pichincha
GCPF Partnership: Guiding Banco Pichincha’s Green Evolution
Banco Pichincha made history in 2019 as the first Ecuadorian bank to issue a green bond. Initially unsure of how to utilize the funds, the bank, with our guidance, confidently ventured into the green building market. Today, the bank is a leading force for green lending. Following the lead of Pichincha, Ecuador’s banking sector has also embraced green lending, with many banks offering diverse EE and RE products.
GCPF has played a crucial role in Banco Pichincha’s green evolution. Initially focused on low-hanging fruits, the bank has progressively expanded its green lending portfolio, learning and adapting along the way. Banco Pichincha’s journey highlights the importance of sustained commitment to green finance. Starting with basic projects, the bank has evolved to become a market leader, promoting sustainable development across Ecuador. The bank’s initiatives have not only reduced carbon emissions but also improved energy efficiency, contributing to a more resilient economy.
Beyond the numbers
Banco Pichincha’s journey highlights the importance of a sustained commitment to green finance. Reflecting the country’s limited engagement on climate finance at the time of the first GCPF partnership, Banco Pichincha initially focused on low-hanging fruits and has since expanded its green lending portfolio, learning and adapting along the way. The bank has evolved into a market leader that promotes sustainable development across Ecuador and the wider Latin America region. The bank’s initiatives have not only reduced carbon emissions but have also improved energy efficiency, contributing to a more resilient economy.
- GCPF partner since: 2011
Rolling out electric forklifts
Green finance for green fuel
UZBEKISTAN – HamkorBank, Ipak Yuli, TBC
