1687495582 Can the bioeconomy replace oil production in the Ecuadorian Amazon

Can the bioeconomy replace oil production in the Ecuadorian Amazon?

Deep in the Amazon jungle, near the border between Ecuador and Peru, Gloria, a Sapara tribal leader, performs a welcoming ceremony for a group of tourists. She is standing in front of a small traditional thatched-roof hut, her face painted with figures representing her connection to nature and her ancestors, and holding a tobacco leaf. “We are here in Naku and we share our traditions and knowledge with you to preserve our culture and show the world that it is possible to live without extractivism,” she says in a calm voice. The Sapara are one of the 11 Amazonian nationalities of Ecuador, a group declared an Intangible Cultural Heritage by UNESCO. However, there is a risk that they will disappear due to oil production, among other things.

To withstand the challenges they face, the Sapara Naku established an ecotourism center dedicated to protecting the rainforest, sharing their worldview, and producing economic resources sustainably. To reach Naku from Ecuador’s capital, visitors must travel 150 kilometers (93 miles) from Quito to Shell and then embark on a two-day jungle trek or short flight. There, tourists interact with the community, swim in rivers, hike, and participate in traditional ceremonies.

Naku is an example of how Amazonian communities are trying to find alternatives to ecological transition through bioeconomy: using the wealth of the Amazon in a responsible way. The project employs more than 30 families and directs proceeds to a common fund to finance education and provide health services.

An aerial view of the Naku project.An aerial view of the Naku project.NAku (Courtesy)

The missed opportunity of the oil industry

Every year, 194 million barrels of crude oil are produced in Ecuador, which represents a profit of over 7 billion US dollars. But even though the Amazon region accounts for a third of the country’s economy, the economic benefits have not reached the communities around the oil fields, where more than half the population lives in poverty. In addition, oil exploration has caused serious damage, including oil spills and large-scale pollution.

Economist Alberto Acosta, who worked at state-owned oil company Petroecuador, says he used to be adamant that oil was “the solution to lifting Ecuador out of poverty.” But after serving as Minister for Energy and Mines, he now says he saw “the monster from the inside” and witnessed “the destruction caused by hydrocarbon activity.” As a result, Acosta’s perspective has changed and he now firmly believes in the possibility of creating alternative economies.

In Ecuador, there are a growing number of ventures focused on the bioeconomy, such as ecotourism, a growing industry that generated more than $180 billion in global revenue in 2019 and is estimated to reach more than $330 billion by 2027 . The Pachamama Foundation supports these projects in Ecuador through its Forest Economies program. According to Pablo Balarezo, program coordinator, “Ecotourism projects are most successful in promoting the bioeconomy.” Given the country’s unique biodiversity, he believes that “in the future, this industry has many opportunities to become an alternative to oil activity become.”

Tourists arrive at an indigenous community in the Amazon.Tourists arrive at an indigenous community in the Amazon. With kind approval

Another successful example of sustainable farming is vanilla, which is mainly grown by 300 producers from the Kichwa communities of the Kallari Cooperative in Napo Province. Considered the second most expensive plant in the world, this orchid is in increasing demand in countries such as the United States, Lithuania, Canada, the Czech Republic and Panama.

Vanilla farming costs over $500 a kilo and is run by Amazonian women trained by the Pachamama Foundation. For Belén Páez, director of the foundation, the success of these projects “depends on the joint collaboration of NGOs, indigenous peoples, academia, local governments and the private sector.” Several projects have attracted the interest of international investors who want to become part of these value chains . Funded by the French Development Agency (AFD), the Chakra project promotes the development of vanilla production, which also produces derivatives for chocolate and cosmetic products.

Another product with great commercial potential is Guayusa, a plant rich in caffeine and antioxidants with medicinal properties. The Tsatsayaku Association of Small Producers is dedicated to its agroecological production, contributing to the export of more than 120 tons per year to countries such as the United States, Canada and New Zealand. According to the Ministry of Production, exports generate more than $3 million annually, making Ecuador the world’s top supplier. It also promotes the development of thousands of indigenous families. In 2022, the country formed the Guayusa Export Promotion Consortium, an alliance to explore specific markets and share promotional and logistics costs among participating companies.

The association Tsatsayaku not only produces guayusa, but also coffee. Ecuador has achieved remarkable success in exporting coffee and cocoa, becoming the leading exporter of cocoa beans in America. It also ranks fourth in the world with a 168% increase over the past 10 years. In 2020 alone, coffee exports generated US$68.5 million while cocoa exports reached US$850 million.

Tourists at the Tsatsayaku Guayusa, cocoa and coffee cultivation project.Tourists at the Tsatsayaku Guayusa, cocoa and coffee cultivation project. With kind approval

Is the bioeconomy a real alternative?

Despite warnings from the scientific community about the need to protect biodiversity, Ecuador continues to look to oil as an economic solution. However, a British Petroleum report shows that the country could run out of reserves in less than eight years.

After half a century of exploitation, “in Ecuador, poverty persists and oil is running out,” says Carlos Larrea, a researcher at Andean University Simón Bolívar. Larrea adds that it is fundamental to look for alternatives and make an energy transition towards a post-extractive society, stressing the importance of biodiversity. He proposes ecotourism, sustainable agriculture, fair green trade and the transition to renewable energy as important economic alternatives for the country.

But there is still a long way to go. Although the bioeconomy has shown positive results, economically it cannot yet match the profits of an oil-based economy. Additionally, it faces challenges from a lack of institutional support and competition from mining companies, resulting in communities “being forced to work there to meet their basic needs due to a lack of government attention,” Balarezo says.

However, Páez emphasizes that the bioeconomy is a viable solution that is constantly growing. “In just two years, on an area of ​​400,000 hectares, more than 1,200 families have achieved an income that has led to a significant change in their households,” she says, referring to vanilla cultivation. For her, the bioeconomy represents the beginning of new possibilities, “not only for the future of the Amazon, but for all of humanity”.

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