Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-38

DOI https://doi.org/10.31876/er.v6i44.834

Carbon credits as an alternative for the development of Las

Damas, Alluriquín, Santo Domingo

Bonos de carbono como una alternativa de desarrollo del recinto Las Damas,

Alluriquín, Santo Domingo

Jessica Alexandra Calo Gómez*

Diego Vera Solorzano*

Received: January 23, 2023

Approved: February 22, 2023

* Engineer. Master's Program in Environmental

Management, Graduate Institute, Universidad

Estatal del Sur de Manabí.

jessica.calo@unesum.edu.ec

http://orcid.org/0000-0002-4945-3727

* Engineer. Master's Program in Environmental

Management, Graduate Institute, Universidad

Estatal del Sur de Manabí.

diego.vera@unesum.edu.ec

https://orcid.org/0000-0002-6437-834X

Abstract

Nowadays it is of vital importance to reduce the generation of

greenhouse gas emissions. Given the problem of climate change,

which has led to seek solutions globally, involving environmental and

economic issues, opening the market for carbon credits and green

bonds. The main objective of this research was to evaluate carbon

bonds as an alternative for the development of the Las Damas,

Alluriquín, Santo Domingo area. Based on this, a mixed approach was

used, the type of research, bibliographic and field, whose methods

were inductive-deductive and historical-logical, with a non-

experimental-transversal design, using the documentary review and

the survey to collect the information. From the findings, it became

evident that the population is unaware of the environmental services

provided by the forest and carbon credits. It is concluded that one

option is forestry projects through sustainable cattle ranching

developing Clean Development Mechanism.

Key words:

Internal control, cash, vault, credit union, cash.

Cite this:

Calo, J., Vera, D. (2023). Carbon

credits as an alternative for the

development of Las Damas,

Alluriquín, Santo Domingo.

Espirales Revista Multidisciplinaria

de investigación científica, 7 (46),

14-38

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Introduction

The increase in greenhouse gas (GHG) emissions has generated climatic alterations in

the world, which is why, since the 1990s with the United Nations Framework Convention

on Global Climate Change, periodic meetings have been held to monitor the planet's

climate situation. In this regard, after the summit in 1997, the Kyoto Protocol (KP) is

signed, which establishes limitations on the emission of Greenhouse Gases by

industrialized countries, and establishes that countries can negotiate among themselves

their surplus GHG emission quotas, depending on the limits that each one has granted

and can compensate through carbon credits certificates. (Gamba, 2015). In this

situation, the KP allows participants to reduce emissions in their countries of origin or

to take advantage of the so-called flexible mechanisms: Emissions Trading, Joint

Implementation and Clean Development, as well as to quantify the carbon absorbed by

the so-called sinks such as forests or croplands.

In relation to the above, the Joint Implementation Mechanism is conceived, in which

projects will be developed to reduce emissions or absorb emissions by managing sinks

between countries in which both countries will benefit by integrating to meet their

proposed goal together. In this sense, the bonds generated through the mechanism

are called ERUs: Emission Reduction Units-Clean Development Mechanism (CDM),

which means that a developed country acquires formal commitments to reduce or limit

greenhouse gas emissions, a situation that has generated a scenario to develop

emission reduction projects in developing countries (Lino and Marmolejo, 2019).

Resumen

En la actualidad es de vital importancia disminuir de la generación de

las emisiones de gases de efecto invernadero. Dada la problemática

del cambio climático, que ha conllevado a buscar soluciones de

manera global, implicando lo ambiental y económico abriendo el

mercado de los bonos de carbono y bonos verdes. El objetivo

principal de esta investigación fue evaluar los bonos de carbono

como una alternativa de desarrollo del recinto Las Damas, Alluriquín,

Santo Domingo. En función a esto, se empleó un enfoque mixto, el

tipo de investigación, bibliográfica y de campo, cuyos métodos

fueron inductivo-deductivo y histórico-lógico, con un diseño no

experimental-transversal, utilizando la revisión documental y la

encuesta para recolectar la información. De los hallazgos, se

evidenció que la población desconoce los servicios ambientales que

les proporciona el bosque y los bonos de carbono. Se concluye que

una opción son los proyectos forestales mediante la ganadería

sostenible desarrollando Mecanismo de Desarrollo Limpio.

Palabras clave:

Internal control, cash, vault, credit union, cash.

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

It is important to highlight the benefit of developing countries with the transfer of

environmentally sound technologies provided by the most advanced countries, thus

contributing to the sustainable development of the participating countries.

The International Capital Market Association (ICMA), instituted the principles under

which carbon credits would be traded to promote transparency and integrity in the

market, which involve best practices to guarantee revenues, a process of socio-

environmental evaluation and project selection. In this sense, the carbon market is

understood as "a public policy instrument to transform Carbon Dioxide (CO2) into

economic assets such as other goods, which can be traded and valued through financial

instruments called carbon bonds" ( Nayar and Lizarraga, 2019 ). Likewise, it is

highlighted that the first investors in this new class of carbon bonds were the Europeans

and Japanese, since they are among the countries with the highest GHG emissions

(Díaz, 2016).

In this vein, the Paris Agreement prioritizes GHG reduction through this mechanism with

the aim of boosting sustainable development through projects that promote the use of

clean technologies in the framework of global projections for the investment of

approximately one trillion dollars annually between now and the end of 2035 in carbon

credits (Washington, 2017)

In the case of Ecuador, up to 2012 there are official figures from the Ministry of the

Environment which registers 18 projects, among which hydroelectric projects stand out,

followed by biomass-energy, methane capture, biogas-sanitary landfill, sanitary landfill

and energy efficiency. The first CDM-anchored project in the country began in 2004

with the use of energy-saving light bulbs, which meant that the Ecuadorian government

received close to US$4.6 million to reduce 400,000 tons of carbon emissions (Gallegos,

2012). Likewise, in 2019, the Quito Stock Exchange (BVQ) and the Ministry of the

Environment signed an agreement for the country's entry into the green bonds stock

market (BVQ, 2019). This, given by the Biodiversity Finance Initiative (BIOFIN) of the

United Nations Development Programme (UNDP, 2019). In that year, Banco Pichincha

identified thematic bonds as an opportunity to strengthen its leadership in sustainability

in Ecuador and the region, among which are the Green Bonds, which are Stock

Certificates that ensure the financing of activities or projects that contribute to the

mitigation of climate change.

According to data from the Ministry of Environment, Water and Ecological Transition,

between 2006 and 2021, 33 projects have been offered under the CDM that received

payments from the private sector for the issuance of Certified Emission Reductions

(CERs) for investments in energy and waste processes.

The government is currently working on the Zero Carbon Ecuador Program, which will

allow economic compensation for projects that have the potential to reduce verified

greenhouse gas emissions; in exchange, interested parties will receive badges or

certificates that will endorse the reduction of the carbon footprint.

Within the framework of this scenario, the objective of this research is: to evaluate

carbon credits as a development alternative for the San José de las Damas, Alluriquín,

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Santo Domingo area, considering the socio-ecological dynamics and the ecosystem

services associated with the agroforestry systems of the territory. In this way, the analysis

of the perception of the inhabitants regarding the environmental and economic benefits

derived from the conservation of the forest system made it possible to generate a

proposal for a scheme to access the carbon or green bonds market.

Materials and methods

The research is oriented with a mixed approach, the type of research is bibliographic

and field, which allowed the documentary review and direct contact in the Las Damas

Campus. The methods used were inductive-deductive, being considered inductive

because it starts from the particular, the carbon bonds, to the general, the

environmental services, at the same time it is also deductive because it goes from the

general to the particular and historical-logical to conceive a critical work of previous

research, handle them as a reference and compare them with the results. The design of

this work was non-experimental - transversal, since the research did not involve the

manipulation of variables, focusing only on observation in a natural environment for its

analysis. Likewise, it was cross-sectional, because the data were collected at a single

point in time (Hernández and Mendoza 2018). It should be noted that no manipulation

of the information was carried out within the Las Damas Campus, and the data

correspond to the specific period 2022.

With regard to the population and sample, a population of 101 inhabitants was

established according to the INEC, 2010 Population and Housing Census, and the

sample was calculated using the following formula:

n= Sample size.

P= Probability of occurrence (example may be 0.5)

Q= Probability of non-occurrence (example can be 0.5)

N= Population

Z= Confidence level (between 0.90 and 0.99). 0.95 is recommended.

E= Significance level (Admissible from 0.01 to 0.9)

The sample is made up of 43 inhabitants of Recinto Las Damas.

Among the techniques and instruments used to collect information, a documentary

review was used to evaluate the dynamics of CO2 capture in the San José de las Damas

precinct with respect to the stock market, which was presented through a SWOT matrix.

On the other hand, the survey was used through the Kobocollect application directed

to the inhabitants over 18 years of age of the Las Damas precinct, it was carried out with

a questionnaire of structured questions, in digital format to analyze the local knowledge

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

associated with the supply of environmental services derived from the existing forest

systems from the environmental economics approach to "value an environmental good

or service based on what individuals are willing to pay to prevent its deterioration or

disappearance" (Moreno and Barreto, 2013 p. 59). This made it possible to understand

the magnitude of importance that the sector's inhabitants would have on where they

live and also on the expectations of social, economic and mainly environmental

development. The aforementioned, considering the Millennium Ecosystem Assessment

Board (Millennium Ecosystem Assessment Board, 2005). Given their importance, the

linkages between ecosystem services and human well-being are presented in Figure 1,

which are commonly found and includes an indication of the extent to which

socioeconomic factors are likely to mediate the linkage.

Figure 1

. Ecosystem changes for human well-being

Source: Millennium Ecosystem Assessment

In this regard, these are classified into provisioning, regulating, supporting and cultural

ecosystem services. Environmental services can be the provision and care of water

sources, biodiversity conservation, air purification, carbon storage, ecotourism, among

others (Palacios et. al., 2019).

Likewise, the study area was characterized through the analysis of the ecological

landscape matrix under the methodology of visual landscape analysis at a local scale

(Encinas, 2000) to observe the integrity of the sector, which also includes several

indicators such as: nearby water bodies, native cover, access roads, urbanization and

conventional crops, which are presented below with images.

Characterization

Regarding the description and location of the San José de las Damas precinct, it is

located in the Alluriquín area, which is 4556.40 m long and has a surface area of 40.20

ha, limits to the North: Santo Domingo de los Colorados Parish; to the South: Sigchos

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Canton (Cotopaxi Province); Buena Fe Canton (Los Ríos Province); to the East:

Metropolitan District of Quito and Mejía Canton (Pichincha Province); Sigchos Canton

(Cotopaxi Province); and to the West: Santo Domingo de los Colorados Parish: Santo

Domingo de los Colorados Parish.

Image 1.

Map of the location of Las Damas, Alluriquín, Santo Domingo.

Source: Own elaboration

In the San José de Las Damas area, the nearby bodies of water are the Damas River,

which rises in the foothills of the Andes. AndesIt flows into the Toachi River and passes

through the center of the town of Alluriquín.

Image 2:

Nearby water bodies

Source: Own elaboration

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

The climate in the sector where the main population centers are located: Unión del

Toachi, Alluriquín (Recinto San José de Las Damas) and El Paraíso, has a semi-warm

humid climate. It is important to note that Alluriquín mainly has forests and pastures.

Sixty-one point forty-five percent of the land is pasture for cattle. In Recinto San José

de Las Damas, the soil classification is class VI, non-arable land with severe limitations

for irrigation, suitable for use with pasture and forest species, occasionally permanent

crops may be included, 2,018 hectares. Typology of rural production land (Plan de

Desarrollo y Ordenamiento Territorial Alluriquín [PDOT], 2020-2023. GAD Parroquial

Rural Alluriquín).

By 2019, 46.70% of the territory was used for pasture while, in 2010, 48.71% of the

territory was used for this activity; as for forests in 2019, it occupies 41.42% of the

territory in relation to 2010, which occupied 48.90% of the territory, resulting in a

decrease of 7.48% (5,070.79 ha) of forest cover, which means that deforestation

practices continue.

Image 3.

Native coverages

Source: Own elaboration

In terms of access roads, it is connected to three important socioeconomic zones: Santo

Domingo, 19 km away; Las Mercedes, 27 km away; and Sigchos (Cotopaxi), 60 km away,

where the province converges with the central highlands.

Image 4.

Access roads

Source: Own elaboration

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

The San José de Alluriquín parish, where the San José de Las Damas compound is

located, is a rural sector in which most of the houses are owned, mostly houses and a

few half-timbered houses.

Image 5.

Urbanization

Source: Own elaboration

Permanent crops make up only 0.001% of the vegetation cover, semi-permanent crops

0.627% and 4.09% is an agricultural mosaic. In terms of agricultural crops, apart from

pastures, there is an emphasis on guadua, sugar cane, banana, citrus and corn (PDOT-

Alluriquín 2020-2023).

Image 6.

Conventional crops

Source: Own elaboration

Results

This section presents the results of the research divided into the characterization of the

environmental services of the study area, the survey applied to the population and the

SWOT matrix.

Status of the provisioning, regulating and cultural services of the ecosystems analyzed

based on the Millennium Ecosystem Assessment, indicating whether the service has

improved or degraded.

Table 1.

Status of ecosystem services in Las Damas, Alluriquín, Santo Domingo.

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Services

Categories

Situation

Las Damas

Campus

Global

Of provision

Improvement

Increase in the

production of

the service or in

the quantity

produced per

unit of measure.

Degradation

Current

utilization

exceeds

sustainable

levels.

Crops

Cattle

Timber (Forest loss)

+/-

Fresh water

(Sustainable use for

domestic consumption

and risk due to

constant rainfall)

Regulatory

Improvement

Service change

to enable

people to

achieve greater

benefits

Degradation

Decrease in

profits due to

changes in

service or human

pressures

Air quality regulation

+/-

Climate regulation

(carbon sequestration).

Water regulation

+/-

Water purification

(water quality)

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Cultural

Improvement

Increased

quantity and

quality of natural

areas

Degradation

Change in

ecosystem

characteristics

Aesthetic values

+/-

Recreation and

ecotourism

+/-

Source: Millennium Ecosystem Assessment

Own elaboration.

2. Data collected from the surveys, presented with a descriptive analysis reflected by

categorization. However, only 35 residents who wished to participate responded, and

in some questions, not all of them answered. Among the reasons for not responding

were that they were not in the area and fear of giving information because they were

only cowboys on the farm.

2.1 Socio-demographic category, outlines the age, sex, educational level, time living in

the study area, the participants have an average age, of an average adult of 45 years

and in reference to sex, most of the respondents were women. Regarding the level of

education attained, most of them only have high school and none of them have a

university degree. In Alluriquín, 4% of the population (368 people) have higher

education, according to data from INEC, Population and Housing Census 2010.

Regarding the length of time living in Recinto San José de las Damas, it was found that

most people have lived there all their lives, only 2 people come to visit but do not live

there permanently and only one expressed that they have lived there for more than 6

months or 1 year. It should be noted that this is a rural sector in which most of the

dwellings are their own and are of the house type, according to the last census

mentioned above.

2.2 Category labor, distinguishes the activity practiced with remuneration or benefit,

the majority of 90.9% of the inhabitants are engaged in livestock farming, which

indicates their interest in this sector, emphasizing that Alluriquín is located in the

Agricultural Corridor of the province's milk (GAD Parroquial Rural Alluriquín, 2023).

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Livestock production in the parish is extensive. This implies that livestock is the main

commercial activity.

Figure 2.

Type of work

Source: Survey, Own elaboration

2.3 Category environmental services, of provision among which the category livestock

and fresh water are increasing the production of the service, of regulation, climate

regulation (carbon sequestration) stands out, in which a change in the service can be

achieved so that people can obtain greater benefits. In cultural services, aesthetic

values, recreation and ecotourism there is degradation change in the characteristics of

the ecosystem. With respect to the respondents, it is evident that they are 100%

unaware of the subject, and therefore ignore that environmental services have a direct

impact on the maintenance of life, creating benefits and wellbeing for people and

communities. The survey also revealed landslides and overflowing rivers, which means

that excessive rainfall in the sector causes natural disasters that threaten the safety of

the inhabitants.

The results show that the population agrees on the main reasons why there is no

incidence of forestry and / or ecological projects, is due to the lack of interest of the

authorities to publicize the economic, social and environmental benefits that would

bring to the precinct, as well as others mentioned that there are no suitable

professionals to generate these projects, as well as economic support from the

government. This reality still disagrees with the efforts made by the national

government in conjunction with the Ministry of Environment, Water and Ecological

Transition to carry out CDM and the Ecuador Zero Carbon Program, still does not reach

the population of the productive livestock sector of Alluriquín, which can benefit by

implementing actions and measures for the quantification of greenhouse gas emissions

and develop projects to mitigate GHG emissions. In the country, the green economy

with tools such as Socio Bosque and REDD, in correspondence to the Rights of Nature,

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

points out Nieto (2018) are stripped, radicalized and distorted in a perverse way, with

the purpose of commercializing the so-called environmental services.

2.4 Carbon credits category, emphasizing that 96.96% do not know about them, only

one person representing 3.04% has heard about them, although, knowing the economic

benefits provided by implementing ecological projects for the issuance of certificates,

all agree that it is important to generate projects that safeguard and improve

environmental conditions. It should be noted that no public or private institution has

approached the area to talk about carbon credits and basically all of those surveyed

said that there is a lack of interest on the part of the province's authorities to strengthen

knowledge about the importance of this issue, which generates economic value,

benefits the community and, of course, helps to conserve the environment.

Figure 3.

Knowledge about carbon credits

Source: Survey.

Own elaboration

3. SWOT matrix, from the survey and the documentary review, a synthesized evaluation

was made in a matrix with strengths, opportunities, weaknesses and threats,

abbreviated as SWOT, which is a classic diagnostic tool oriented to analyze and solve

problems with which the internal, which pertains to strengths and weaknesses, as well

as the external, related to threats and opportunities of a situation or organization, are

characterized and examined (Oion and Aranguren, 2021). It is of great help when

making current and future decisions. The information allowed characterizing the current

situation focused on the analysis and dynamics that CO2 capture would have with

respect to the stock market that is taking place in Ecuador, as was also done in their

research (Aguirre et. al., 2017).

Table 2.

SWOT

Fortress

Opportunity

100

120

SI NO

Frequency Percentage

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

International agreements, conventions and

plans to contribute to the global reduction of

emissions from the local entity level that

perpetuates the carbon credit market.

The Constitution, the Plan for the Creation of

Opportunities 2021-2025, promote the fight

against climate change and the conservation

of natural heritage. The National Pact for the

Transition to Decarbonization, which will lead

to the reduction of CO2 emissions through

the ecological transition in order to take care

of nature.

Alluriquín's ecological and economic

valuation is available through the parish

government's PODT, which demarcates the

socio-ecological system. In addition, there

have been 21 CDM projects in Ecuador since

2004 that help conserve the environment and

contribute to sustainable development,

including changing the energy matrix.

The potential of tourism as an environmental

service in the area because it has a system of

nine natural waterfalls, where extreme sports

such as canyoning, which is the descent down

the waterfalls, and rappelling, which is the

descent down the mountains using

specialized equipment, are practiced.

Ecuador's treaties with countries that

demand carbon credits, including the

United Nations Framework Convention

on Climate Change.

American, European and Japanese

companies that generate CO2 emissions

have a tendency to buy bonds in the Latin

American market to mitigate

environmental impacts.

The support of the Ministry of

Environment in conjunction with the Zero

Carbon Ecuador Program makes the

opening to the bond markets, in addition,

in the Quito Stock Exchange there is sale

of green bonds.

The presence of FactorCO2, a company

that provides technical consulting

services and environmental markets that

are effective instruments for climate

sustainability.

Weaknesses

Threats

Lack of knowledge of the process to offer

carbon certificates through forest and pasture

preservation. Inhabitants of the communities

are unaware of the potential of the forest,

A large initial investment is required for

CO2 capture, and rates are generally low,

which causes a restriction to be the main

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

especially in terms of providing environmental

services.

There are problems in the socio-ecological

system in the parish of Alluriquín, the

degradation of natural resources linked to

land overuse practices, alteration of

vegetation cover to expand the agricultural

and livestock frontier, which have direct

negative effects on native flora and fauna and

alter ecosystems. In general, they cause

negative consequences to nature, stimulating

greater vulnerability that is expressed, among

other things, in frequent landslides and soil

movements that affect mobility and

production and put people's lives at risk

(PDOT-Alluriquín 2020-2023).

Likewise, there is insufficient reproductive

management; the use of dual-purpose cattle

(milk and meat) is widespread without taking

into account the characteristics of the breed;

genetic improvement mechanisms are not

applied; there is a lack of technological

innovation in the livestock production chain;

and there is very little processing of products

that add value to production.

input for small owners in the livestock

sector.

Bureaucracy in the extensive

development process for the issuance of

emission reduction certificates, which

involves increased costs.

There is a potential increase in the supply

of bonds that would lead to a decrease in

the value of bond transactions in the

market.

Source: Own elaboration.

Based on the preliminary analysis, a scheme for accessing the carbon or green bonds

market was designed, which is shown in the following figure and is explained in detail

by its component blocks.

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

Figure 3.

Carbon market access scheme (green bonds)

Source: Own elaboration

To begin with, it is essential to mention that forests play a fundamental role in the

reduction of atmospheric CO2 because they fix carbon in the photosynthesis process.

The parish of Alluriquín has forests and pastures, which can help reduce the carbon

footprint and mitigate climate change. Reducing emissions from deforestation and

degradation of native forests, through conservation activities and sustainable

management of forests for their rehabilitation and carbon sequestration, could translate

into economic benefits (Food and Agriculture Organization of the United Nations FAO,

2022). This is a viable option as well as the one we intend to promote in this research,

through sustainable livestock farming, such as silvopastoralism, with rotational grazing

techniques, where natural field production with rotational access of animals to pastures

increases carbon sequestration in the soil.

Block Cattlemen's Association

In view of the cattle ranchers in the region, although there are also farmers, an

association of cattle ranchers is specifically proposed for the application of carbon

sequestration through optimized pasture management; so that they can be trained, a

community fund can be created, agronomists and specialists can be contacted to

develop the CDM project, which has a cost that can be difficult to pay for a cattle

rancher.

Sustainable Livestock CDM Project Block.

Now, the Clean Development Mechanisms project, the implementation of the

agrosilvopastoral system is opportune to stop erosive processes of the environment and

order the system towards its economic and social improvement. This requires:

A series of requirements such as contribution to sustainable development, permanence

of reductions and additionality. In this case, the implementation of the agrosilvopastoral

system is opportune to stop erosive processes of the environment and order the system

towards its economic and social improvement.

Asociación de

ganaderos

Proyecto de MDL

ganadería

sostenible

Empresa para la

cuantificación del

carbono

Emisores de bonos

Implementar el

sistema

agrosilvopastoril

(Reducción de

emisiones de CO2)

Renovación

Certificación

Reducción Huella

Carbono

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

The document should contain the general description of the project, the methodology

for the baseline, duration, validation and registration, and its acceptance. For this

reason, the existence of the cattlemen's association will make the construction of the

project more efficient with the help of specialists.

Company block for carbon quantification

To create the carbon credits project, verification and certification of emissions is also

required, so to start with, satellite images are required, under the monitoring, reporting

and verification schemes for the calculation of the quantification of the carbon to be

traded and to comply with the requirements under national or international standards,

which would require the hiring of a company that has a cost that may be difficult to pay

for a farmer.

All of the above is a function of the "Zero Carbon" incentive level, which will be, first,

quantification of the carbon footprint (level 1), then implementation of actions to reduce

GHG emissions (level 2) and finally compensation of those emissions that have not been

reduced, to reach carbon neutrality (level 3). (Technical Standard of the Ecuador Zero

Carbon Program, 2022).

Block Bond issuers

In Ecuador, any kind of company can issue social or green bonds, regardless of the

economic sector, both private and public, whether large, medium or small; to do so,

they must be committed to socially responsible investments, with a sustainable strategic

objective, through projects that start from scratch or advanced projects (Quito Stock

Exchange, 2022).

The Quito Stock Exchange is the only one in the country that has standards for this type

of issuance, provides the infrastructure for the negotiation of issues and establishes the

rules to be followed by securities firms and issuers through self-regulation, both for the

registration of financial instruments, as well as for their negotiation. The

Superintendence of Companies, Securities and Insurance plays the role of authorizing

the public offerings of Green and Social Bonds, after having concluded the whole

structuring process by the securities firms.

Block Implementing the agrosilvopastoral system (Reduction of CO2 emissions)

Once the emissions have been quantified, they must be reduced through the

implementation of projects or activities to mitigate climate change, in this case with the

sustainable livestock farming system. The technical standard of the Ecuador Zero

Carbon Program establishes that once the requirements are met, the proponent will

receive the "Carbon Footprint Reduction Certification" which will be valid for two years.

Carbon Footprint Reduction Certification Renewal Block

The CDM mitigation project may request the renewal of its carbon footprint reduction

or carbon neutrality certification up to 1 year after its expiration. For the renewal, it

must demonstrate the reduction or maintenance of its GHG emissions, based on

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

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absolute indicators, in relation to its reduction year; and, it commits to submit to the

National Environmental Authority the verification statement of the second year of the

certification (Technical Standard of the Ecuador Zero Carbon Program, 2022).

The country, having large areas of nature, has wasted its potential to carry out CDM

projects and receive compensations due to its delay in getting involved in the carbon

market, and has even missed out on income that other countries, such as Costa Rica,

Argentina, Colombia and Uruguay, are taking advantage of.

In Colombia, environmental compensation systems have been applied in several

projects such as those of Zapata et al. (2015) and Artunduaga and Escobar (2016), with

excellent results in achieving sustainable management of livestock activity. In this

regard, in Ecuador, there is potential for CO2 capture, one of these projects is

"Possibilities of commercialization of carbon credits from the dry forest of the province

of Loja, Ecuador" (Aguirre et. al., 2017), which demonstrates the interest not only in

promoting Corporate Social Responsibility, but also in the creation of socio-ecological

projects that greatly benefit those who are part of the territory that is possible to

generate CO2 capture certificates.

This situation of not having compensation systems for CDM mitigation projects is due

to the lack of knowledge of 100% of the population, in this case in the San José de Las

Damas area, about environmental services and 99% about carbon credits, as evidenced

in the survey. In addition, the Zero Carbon Ecuador Program and the sale of green

bonds on the Quito Stock Exchange were only implemented in 2021, so there is still a

long way to go for large organizations to seek to mitigate carbon emissions to address

global warming. This result obtained is similar in terms of the population's perception

to the research of Junca et. al. (2022), in which 89.2% of the inhabitants living near the

Molinos de San Roque urban wetland in Xalapa, Veracruz, interviewed do not know

what an environmental service is.

In this order of ideas, it is important to note that despite the welfare that environmental

services for humans can offer, they are generally studied focused on recreational or

ecosystemic use, opportunity costs related to indigenous groups, aesthetic benefits and

scarce research linked to carbon storage (Palacios et. al., 2019).

Based on the above, it is worth highlighting the role that livestock farming plays in the

intensification of environmental problems, although, at the same time, it has the

potential to mitigate them (Báez, 2018). This author also mentions that, in the Cuban

livestock activity, in the political and environmental management sphere, it is

considered restricted because they do not have compensation systems for good

practices, such as payments for environmental services, and neither is there a carbon

bond market.

On the other hand, Nayar and Lizarraga (2019), who analyzed the carbon market, how

its development in Argentina in recent years is progressing; to reveal the existence or

not of opportunities in the market; to consider whether economic benefits for Argentine

companies concur. Within their research, they also present an investment project

proposal for the implementation of a silvopastoral system. Among the results, they

Jessica Alexandra Calo Gómez, Diego Vera Solorzano

Espirales. Revista multidisciplinaria de investigación científica, Vol. 7, No. 46

July - September 2023. e-ISSN 2550-6862. pp 14-37

determined that it is profitable to invest in an environmentally sustainable project, under

certain factors and assumptions. Based on these assumptions, this free development

mechanism is also viable and feasible for Ecuador and for the San José de Las Damas

Campus because it has the legal support of the Constitution, the Plan for the Creation

of Opportunities 2021-2025, the National Transition Pact towards Decarbonization and

the Ecuador Zero Carbon program.

Vargas, et. al, (2022) in Colombia, in the La Cortadera páramo, department of Boyacá,

compares an environmental assessment and another with carbon credits, highlighting

the positive impact of the latter, so it organizes a protocol for the provision of the carbon

sequestration service in that ecosystem and an environmental management plan to

mitigate the identified impacts that would favor its recovery, conservation and

sustainable development, as it would occur in the study area of this research, since the

San José de Las Damas site has the environmental and socioeconomic conditions

necessary to propose a CDM scenario and enter the carbon market.

In this context, the proposed scheme of access to the carbon bond market (green

bonds) is applicable in research such as those of Rúa (2022), Severino et. al. (2021), León

et. al. (2020), Argüello et. al. (2019), among others that require economic and

environmental development through sustainability.

Conclusions

Carbon credits for the development of Las Damas, Alluriquín, Santo Domingo are an

alternative that generates economic income through livestock farming and contributes

to the reduction of CO2.

The population of San José Las Damas has no knowledge about carbon credits and the

environmental services associated with the forestry system, so the proposal of a scheme

to access the carbon credit market for future research in rural communities serves as a

guide.

In the dynamics that CO2 capture would have with respect to the stock market in the

country and the study area, the strengths and opportunities stand out above the

weaknesses and threats, in which treaties and global laws seek to benefit both parties

that make agreements and the planet, although the monitoring and control of these

projects is in question.

The scheme for accessing the carbon credit market is based on the reality of the study

area and the global context carried out by blocks in which each one has its level of

complexity, especially the time for the certification of the carbon footprint, although

they are achievable as other Latin American countries have achieved.

Carbon bonds as an alternative for the development of the Las Damas site, Alluriquín, Santo Domingo

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..........................................................................................................

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