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Ecuador is a country with outstanding levels of biodiversity and unique indigenous people, but it is also a country that has relied heavily on the extraction of natural resources to fuel its economy. However, the oil fields lie within fragile natural areas where indigenous groups live. The pressure put on these areas has led to substantial damage in parts of the Amazon region and the extinction of some cultural groups. In light of this, the Yasuni ITT initiative has emerged as an opportunity to make a transition to a post-oil development model where the sustainable use of resources, including the promotion of clean energy sources, sits alongside the protection of natural areas and the respect of indigenous rights. In leaving 20% of its oil reserves underground, Ecuador expects to receive a compensation equivalent to 50% of the revenues that would otherwise result from the oil’s sale. However, the Initiative faces governance challenges that are explored in this study, using an “earth system governance” theoretical framework. This framework is based on sustainable development norms. This study focuses on five main structural problems present in the governance processes: the architecture of the system; agency; adaptiveness; accountability and legitimacy; and the allocation of and access to resources. The analysis of these challenges provides a picture of the barriers and opportunities for the Initiative to succeed. It is concluded that the continuity of the Initiative depends greatly on coherent and consistent governmental actions and the extent to which non-state actors and civil society can meaningfully participate in decisions taken around the exploitation of the Yasuni National Park.

Analysing the Governance Structure of the Yasuni ITT Initiative: What are the potential governance challenges that the Yasuni ITT initiative faces and how are they likely to influence its overall success?