The Central Bank of Ecuador (BCE) faces significant barriers in its institutional capacity, data production and disclosure mechanisms, and governance structure. These deficiencies limit the bank's ability to assess and address climate-related financial risks and hinder transparency and engagement with global partners. As a result, these barriers pose challenges to effective climate change actions in Ecuador, potentially stymying sustainable investments and robust financial responses to environmental challenges.

The BCE has developed adequate capacity, governance structure and data management systems, leading to enhanced integration of environmental, social, governance and climate change considerations into the BCE’s monetary policy and regulations, resulting in enhanced management and disclosure of climate-related financial risks and promoting greater financial sector’s contribution to Ecuador’s climate agenda.

By the end of the Readiness grant:

• BCE's staff will have enhanced understanding and capacity on matters related to environmental, social and governance standards, climate risk disclosure, sustainable banking frameworks and standards;
•  the BCE will have developed capacity and systems to produce and manage green statistics and measure the country’s financial sector's exposure to climate-related financial risks;
• the BCE will have developed an action plan for the integration of environmental, social and governance (ESG) considerations into its governance structure and advanced its candidature to the Network for Greening the Financial System (NGFS);
• the BCE will have developed strategic partnerships with relevant central banks and banking sector regulators in Latin America and internationally.