South American nation to offer almost a third of total rainforest areas to China.
The rainforest could be leased. Image: Electrictreehouse |
Ecuador’s government has announced its intention to lease a vast portion of the Amazon rainforest to Chinese oil companies.
The announcement comes after a series of high profile meetings between the two nations in Quito, Houston and Paris – all of which were met by environmental protestors.
Some activist groups, including the California-based Amazon Watch group, claim that a number of the indigenous people have not been consulted and that any oil exploration could potentially damage the local habitat.
Large tranches of the Amazon, which is estimated to contain around half of all known animal and flora species, are already protected by tough conservation laws.
Ecuadorean secretary of hydrocarbons, Andres Fabara, claims the government has already withdrawn several blocks from bidding amid environmental and social concerns. Fabara believes the leases are key in the government’s efforts to “fight against poverty.”
While Fabara insists Ecuador is looking for other “global investors”, many see the leasing agreement as a servicing the nation’s debt to China. Ecuadorian debt to China stood at $7bn in 2012, roughly 10% of GDP.
President Rafael Correa insists that a large portion of the rainforest will remain untouched by oil development projects and pledged to halt development if the international community would compensate Ecuador accordingly for the lost revenues.