Government ‘Reform’ In Ecuador: Nature And Human Rights Protections Take A Backseat

Under President Daniel Noboa, Ecuador has eliminated several key government ministries including the Ministry of the Environment and the Ministry of Women and Human Rights as part of an attempt to revitalise the economy for private investment. These reforms reduce the environmental and social protections for some of the most biodiverse ecosystems and vulnerable groups such as Indigenous peoples. They also pave the way for more fossil fuel and mining projects.  

by Harveet Singh Purewal

What is Executive Order 60?

On 24 July 2025, President Daniel Noboa issued Executive Order 60, a wide reaching presidential decree that aims to rein in public spending and improve government efficiency by shrinking Ecuador’s national cabinet from 20 to 14 ministries [1]. This involved axing the Ministry of Women and Human Rights, cutting 5,000 jobs, and merging the Ministry of the Environment, Water and Ecological Transition into the Ministry of Energy and Mines [1]. This far reaching government restructuring is part of the broader political and neoliberal economic vision of the Noboa government [1].  

Consequences of Executive Order 60

Merging the Ministry of the Environment into the Ministry of Energy and Mines threatens the environmental protections that an independent environment ministry provides to threatened, globally important ecosystems such as the Ecuadorian Amazon. It creates a conflict of interest within the ministry as oil, gas and mineral extraction are some of the leading causes of deforestation [2]. In fact, they are the biggest driver of biodiversity loss in Ecuador [2].

By placing the Ministry of the Environment under the authority of extractive industries, Noboa continues the pattern set by Ecuador’s previous three governments of encouraging the expansion of the mining sector – which currently contributes 1% to Ecuador’s GDP – while pledging to generate jobs through increased investment in the industry [3, 4]. Both legal and illegal mining is increasing at an alarming rate; the country’s total mining area expanded by 1405 hectares in 2021 alone. By 2025, mining is predicted to generate $4 billion in annual export revenue, making it Ecuador’s third largest export [5, 6].  

Cutting public institutions such as the Ministry of Women and Human Rights undermines the ability of these bodies to protect the rights of vulnerable communities such as Indigenous Peoples who are constitutionally guaranteed the right to Free, Prior and Informed Consent, self determination and ancestral territory [1]. It is therefore a blatant move by the Noboa government to disregard its constitutional and international responsibilities [6].    

The trade-off between environment and economy in developing countries

Executive Order 60 is part of a wider rollback of social and environmental rights in Ecuador. Approved in July 2025, Ecuador’s Organic Law for the Strengthening of Protected Areas has been criticised as an attempt to exclude Indigenous communities from the consultation process for new development projects [7].  

This agenda of Noboa can be partly explained by the international finance landscape. Despite the majority support among Ecuadorians for environmental protection measures – in 2023, 58% of citizens voted in a national referendum to protect a nature reserve against further drilling –  the country has repeatedly been coerced by international crediting agencies and financial institutions such as the International Monetary Fund (IMF) to maintain its extractive industries for economic recovery and stability [8, 9]. Shortly before the referendum, Fitch (a global credit rating agency) downgraded Ecuador’s credit rating, citing in part its decision to stop oil drilling in Yasuni National Park, thereby limiting the country’s ability to attract foreign investment [10]. Such penalties exploit developing countries’ dependence on international finance, discouraging them from decarbonising. As a result, continuing to drill for oil and gas often makes more economical sense for these countries [9].      

Executive Order 60 also came in response to pressure from the IMF which tied a $600 million dollar loan to economic and structural reform aimed at boosting private investment in ‘high potential’ sectors such as mining and energy [11, 12]. This illustrates how the economic priorities of international financial institutions are imposed on developing countries as a condition for financial stability, often at the expense of environmental protection [12].

Extractive industries are the backbones of many developing countries’ economies and, no doubt, provide a short-term, promising solution to economic hardship. Nonetheless, it is integral that financial flows be aligned with nature and climate priorities if countries like Ecuador are to decarbonise without facing punitive responses from the private sector [13]. To achieve this, the international finance landscape must be reformed to scale private finance into nature while redirecting financial flows that undermine it [14].        

References:

[1] Aguilar, L. (2025, July 25). Ecuador Axes its Environment Ministry, Paving Way for Unchecked Extraction on Indigenous Lands and in Biodiverse Forests- Amazon Frontlines. Amazon Frontlines. https://amazonfrontlines.org/chronicles/ecuador-axes-its-environment-ministry-putting-biodiversity-indigenous-territories-and-the-climate-at-risk/
[2] United Nations Convention on Biological Diversity. (2025). Ecuador Country Profile. Www.cbd.int. https://www.cbd.int/countries/profile?country=ec
[3] Ángela Meléndez. (2022, January 11). Ecuador Has “World Class” Deposits, But Mining Sector Faces Challenges to Growth. Bloomberg Línea. https://www.bloomberglinea.com/2022/01/11/ecuador-has-world-class-deposits-but-mining-sector-faces-challenges-to-growth/
[4] Maxwell Radwin. (2025, August). Ecuador axes environment ministry as officials scramble to revive economy. Mongabay Environmental News. https://news.mongabay.com/2025/08/ecuador-axes-environment-ministry-as-officials-scramble-to-revive-economy/
[5] Brown, K. (2024, January 17). Report shows loss of natural land cover in Ecuador — and where it can still be saved. Mongabay Environmental News. https://news.mongabay.com/2024/01/report-shows-loss-of-natural-land-cover-in-ecuador-and-where-it-can-still-be-saved/
[6] Rights and Resources Initiative. (2008). Ecuador passes new Constitution acknowledging indigenous rights. Rights + Resources. https://rightsandresources.org/blog/ecuador-passes-new-constitution-acknowledging-indigenous-rights/
[7] Collyns, D. (2025, August 8). Indigenous Ecuadorians say axing ministries hurts Amazon forest. Context.news; Context. https://www.context.news/nature/indigenous-ecuadorians-say-axing-ministries-hurts-amazon-forest
[8] The Associated Press. (2023, August 21). Ecuadorians reject oil drilling in the Amazon, ending operations in a protected area. AP News. https://apnews.com/article/amazon-ecuador-oil-drilling-referendum-yasuni-5c72a325755976c47a3ec138bdab8537
[9] Patel, D. (2023, October 9). Ecuadorians voted to protect nature. A Big Three credit rating agency penalised them for it. – LSE International Development. LSE International Development – Social, Political and Economic Transformation in the Developing World. https://blogs.lse.ac.uk/internationaldevelopment/2023/10/09/ecuadorians-voted-to-protect-nature-a-big-three-credit-rating-agency-penalised-them-for-it/
[10] Fitch Ratings. (2023, August 16). Fitch Downgrades Ecuador’s Long-Term IDR to “CCC+.” Fitchratings.com. https://www.fitchratings.com/research/sovereigns/fitch-downgrades-ecuador-long-term-idr-to-ccc-16-08-2023
[11] International Monetary Fund. Western Hemisphere Dept., and International Monetary Fund. Strategy, Policy, & Review Department “Ecuador: Second Review under the Extended Arrangement under the Extended Fund Facility, Request for Augmentation and Rephasing of Availability Date for the Third Review, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Ecuador”, IMF Staff Country Reports 2025, 199 (2025), accessed August 27, 2025, https://doi.org/10.5089/9798229016568.002
[12] Carillo, G. (2025, August 2). Not just Trump: Ecuador’s president pushes oil investments and dismantles the Ministry of Environment. GreenMe; GreenMe. https://www.greenmemag.com/environment/not-just-trump-ecuadors-president-pushes-oil-investments-and-dismantles-the-ministry-of-environment/
[13] United Nations Environment Programme (2022). State of Finance for Nature. Time to act: Doubling investment by 2025 and eliminating nature-negative finance flows. Nairobi. https:// wedocs.unep.org/20.500.11822/41333
[14] Chen, E. (2024, December 18). Nature Finance Urgency: Financial Institutions Must Drive Systemic Change. The Financial Analyst. https://thefinancialanalyst.net/2024/12/18/nature-finance-urgency-financial-institutions-must-drive-systemic-change/