The objective of the second phase of the module "Protection and Sustainable Management of Ecosystems in the Andes" (Montañas II, 10/2024-09/2027) is to improve the regulatory, technical and financial framework conditions for the conservation, restoration and sustainable use of high Andean wetlands (with special focus on wetlands of international importance under the Ramsar convention).

The high Andean wetlands of Ecuador include a variety of ecosystems (e.g. lagoons, ponds, bogs, swamp meadows, shrub vegetation and cloud forest), which are water sources and reservoirs for lower regions. From an altitude of 3300 m above sea level, these ecosystems are collectively referred to as "páramos" covering 1,514,267 ha (about 7% of the country's area). Almost half of them are located in protected areas with 112,212 ha being wetlands of international importance due to the Ramsar Convention.

The high Andean wetlands both in and outside of protected areas are subject to ongoing destruction due to the conversion to pasture and agricultural land, accompanied by the drainage of peatlands and the introduction of non-native species. Their degradation is further exacerbated by climate change. At the same time, the southern and central high Andes in Ecuador show high migration rates, especially of young people and men. The women who are left behind have a high workload and prefer dairy farming to labor-intensive agricultural activities.

The project can build on the outcomes of the predecessor module (Montañas I): Producer communities in the value chains of dairy and alpaca products, honey, quinoa and tourism were supported. In addition, financing mechanisms for the conservation and restoration of wetlands were piloted (e.g. sales-based levies on cheese and quinoa). A community of practice ("Minga de la Montaña") was created and improves knowledge exchange on páramo conservation and restoration. At the same time, political instruments - the National Páramo Action Plan, as well as guidelines for the restoration of high Andean landscapes - were created in a participatory manner, and the multi-actor approach of the module improved trust between key players and strengthened local governance structures. Restoration measures were implemented, which served for a training module (Escuela de Restauración) piloted with a local university.

Despite the promising processes, measures to protect, restore and sustainably use the high Andean wetlands (e.g. capacity building, restoration projects, sustainable business models, coordination spaces) are still limited to isolated initiatives, and key stakeholders lack the capacity for up-scaling. Therefore, the Montañas II module focuses on five outputs:

1. Governance structures are used by state and civil society actors to jointly coordinate policy instruments that promote the conservation of high Andean wetlands in an intercultural and gender-responsive manner;
2. Technical and methodological capacities of technical staff for planning and monitoring of restoration measures have been improved;
3. New management instruments in and around selected Ramsar sites have been tested to maintain and record the effects of restoration measures;
4. Production and nature-positive business models that contribute to the conservation, restoration and sustainable use of high Andean wetlands have been strengthened;
5. New options for resource mobilization for conservation, restoration and sustainable use of high Andean wetlands have been identified.

Lead executing agency / implementing partner: Ministry of Environment, Water and Ecological Transition (Ministerio de Ambiente, Agua y Transición Ecológica, MAATE).

Target groups: Rural population in five provinces of the central and southern Andean highlands, producer organizations and companies.

Mediators: Technicians and decision makers of MAATE, Ministry of Agriculture and Livestock (Ministerio de Agricultura y Ganadería, MAG), decentralised local governments and protected areas.

The contractor will contribute to a limited extent to outputs 2 and 3 and primarily focusses its work and services on the outputs 4 and 5 of the module with a particular emphasis on business models and finance solutions for conservation, restoration and sustainable use of high Andean wetlands in Ecuador.

Output 4 aims to strengthen the development of inclusive production and business models, which contribute to the conservation, restoration and sustainable use of high Andean wetlands. The hypothesis is that the promotion of nature-positive production or business models with the participation of the local population (especially women and indigenous people) through an innovation competition, will improve the framework for the conservation of high Andean wetlands by mobilising private sector support. Close cooperation with MAATE and MAG is required in order to reach the key actors in agricultural land use and to harmonize the agricultural extension approach with MAG. Also dialogue events with producers are of strategic importance. MAATE will be advised in its role in promoting the bioeconomy and supported in the organization of the innovation competition, as well as in the implementation of the selected projects, possibly with the involvement of the Ministry of Production (Ministerio de Producción, Comercio Exterior, Inversiones y Pesca, MPCEIP). In addition, producer organizations are being prepared to meet market requirements. Initiatives that contribute to the preservation of cultural identity and have a high proportion of women are given preference.

Output 5 aims to provide new resource mobilization options for conservation, restoration and sustainable use of high Andean wetlands. The hypothesis is that campaigns to mobilise contributions as well as the development of financing solutions improve the conservation, restoration and sustainable use of high Andean wetlands and contribute to the expansion of corresponding initiatives. The campaigns of the partners to be supported are intended to mobilize contributions from the private sector and the local population, as well as the Ecuadorian diaspora in the USA, as there are many migrants from the Ecuadorian highlands. Financing solutions are being developed to promote the conservation, restoration or sustainable use of the high Andean wetlands. These include compensation mechanisms for ecosystem services, such as water funds. As a basis for the implementation of the national programme for the compensation of greenhouse gas emissions (Programa Ecuador Carbono Cero, PECC) in the páramos, the partners are advised on the development of methods for MRV of greenhouse gases in the high Andean wetlands, as well as on other financing options via government incentives (e.g. tax incentives, credit lines at special conditions, among others).

The implementation of the following four work packages (WP) is required:

WP 1 (related to output 2) - Technical and methodological capacities for the planning and monitoring of restoration measures:
- An assessment of strategic nature metrics (water, biodiversity, carbon) from a finance perspective (e.g. with relevance to the finance and business sector or results-based schemes) has been conducted and evaluates the corresponding finance potential and viability.
- A sustainable financing strategy to ensure a long-term restoration monitoring system of high Andean wetlands has been proposed (including the finance for permanent trial areas as a reference for restoration monitoring).

WP 2 (related to output 3) - New management tools to protect and record the effects of restoration measures in and around Ramsar sites:
- Documents about lessons learned and successful experiences in Ramsar sites (regarding Ramsar site management, sustainable financing of Ramsar site management, conflict management, engagement of local population) from other countries are shared.
- A feasibility analysis for the declaration of new Ramsar sites located in the intervention areas has been conducted.
- A short-term expert in Ramsar sites has attended and has actively participated in Governance roundtables.
- A Document on opportunities for strengthened ecological connectivity that Ramsar sites may provide for biodiversity (flora and fauna) and water has been developed and presented.

WP 3 (related to output 4) - Production and nature-positive business models that contribute to the protection, restoration and sustainable use of high Andean wetlands:
- An innovation competition / call for project proposals for the promotion of nature-positive business models is launched.
- The proposals presented in the innovation contest are evaluated.
- 3 private companies that contribute to the protection, restoration and sustainable use of high Andean wetlands with nature-positive business models are identified.
- 5 selected projects resulting from the innovation contest have been initiated with the participation of actors in the intervention area.
- The implementation of the projects as well as the good practices for reducing the ecological footprint are systematized.

WP 4 (related to output 5) - Resource mobilization for the conservation, restoration and sustainable use of high Andean wetlands:
- Campaigns about the protection of páramo ecosystems in order to mobilize financing for this ecosystem are designed.
- Information material as part of the campaigns is developed.
- A Diagnostic study of financing needs and financing options is carried out.
- Information campaigns aimed at private companies, the Ecuadorian diaspora in the USA and at the local population to raise awareness about high Andean wetlands and ecosystem services are launched.
- 5 financing solutions have been developed.
- A portfolio comprising at least 5 fundable projects has been institutionalized in a competent organization/institution.

Furthermore, the contractor will contribute to the monitoring and knowledge management of the module.

Ecuador

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