FUNDACIÓN FONDO ECUATORIANO DE DESARROLLO SUSTENTABLE (F.E.D.)

CORPORATE EXPERIENCE WITH INDIGENOUS NATIONALITIES IN GENERAL BACKGROUND:

"Foundation FED" FONDO ECUATORIANO DE DESARROLLO SUSTENTABLE ", has been developing to date processes for quality certification in the exploitation of non-renewable resources with social, environmental and business responsibility, is a non-profit entity, under private civil law, protected by Ecuadorian laws, created by free and voluntary association, by persons without any legal impediment to associate and act in reference to its Statutes, which were approved by the Ministry of the Environment of Ecuador, with Ministerial agreement 045 dated April 24, 2002.

For doing so, FED Foundation, for its operations inside and outside the country, is associated with several related entities, among others: Carbon Innovations Ltd which in turn has an alliance with Tricorona, with Genesis Global LLC, PACT INC and the Hale & Dorr Law Firm, Terra Carbon LLC, 33 Asset Management, ICONTEC, Terra Global Capital, Austrian- Israeli Chamber of Commerce, Nova Scotia, Zafiro Business Group, Forrest Bird Society, Global Environmental Alliance, Equitable Origin, as partners with those who develop and represent it. GENERAL BACKGROUND:

Most of its work has been developed with indigenous nationalities or in the territory of such nationalities. Native , are the groups of people who were present in what became Ecuador when Europeans arrived, 7% of Ecuador's population is of indigenous heritage.

FED’s has worked virtually with all the indigenous nationalities and groups, and also in almost in all Ecuadorian continental territory. It has worked with human settlements in the provinces of Zamora, Napo, Pastaza, Sucumbíos, and Orellana. However, it also worked with indigenous people located in the Sierra and in the Coast. CORPORATE EXPERIENCE WITH INDIGENOUS NATIONALITIES IN THE ECUADORIAN COAST

REGION PROVINCES TECHNICAL INTERVENTION COAST Awá Carchi, Esmeraldas, Imbabura Life Plans Chachi Esmeraldas Environmental Services Appraisals Epera Esmeraldas Miscellaneous Projects or Proposals Tsa'chila Pichincha Miscellaneous Projects or Proposals Manta - Huancavilca Manabí, Guayas - Puná Miscellaneous Projects or Proposals

CORPORATE EXPERIENCE WITH INDIGENOUS NATIONALITIES IN THE ECUADORIAN AMAZONIA

REGION PROVINCES TECHNICAL INTERVENTION AMAZONIA Environmental Services Appraisals and A'I Cofán Sucumbíos Forest Management Plans. Sucumbíos Redd + Proposals Siona Sucumbíos Miscellaneous Projects or Proposals Environmental Services Appraisals and Huaorani Orellana, Pastaza, Napo Forest Management Plans. Shiwiar Pastaza Redd + Proposals Environmental Services Appraisals and Zápara Pastaza Forest Management Plans. Pastaza, Morona Miscellaneous Projects or Proposals Morona, Zamora, Pastaza, Napo, Orellana, Sucumbíos, Environmental Services Appraisals and Guayas, Esmeraldas. Forest Management Plans. Reed+ Proposals and School of Sucumbios, Orellana, Napo y Kichwa Amazonia Pastaza Government and Resource Management Proposals.

CORPORATE EXPERIENCE WITH INDIGENOUS NATIONALITIES IN THE ECUADORIAN SIERRA

REGION PROVINCES TECHNICAL INTERVENTION SIERRA Karanki Imbabura Development Plans Comprehensive Care Programs for Natabuela Imbabura Women and the Family Comprehensive Care Programs for Otavalo Imbabura Women and the Family Comprehensive Care Programs for Kayambi Pichincha, Imbabura, Napo Women and the Family Kitukara Pichincha Miscellaneous Projects Panzaleo Cotopaxi Miscellaneous Projects or Proposals Chibuleo Tungurahua Miscellaneous Projects or Proposals Salasaca Tungurahua Miscellaneous Projects or Proposals Kichwa Tungurahua Tungurahua Miscellaneous Projects or Proposals Waranca Bolívar Miscellaneous Projects or Proposals Miscellaneous Projects or Proposals Puruhá Chimborazo Miscellaneous Projects or Proposals Kañari Azuay, Cañar Miscellaneous Projects or Proposals Saraguro Loja, Zamora Atención integral a la mujer y familia

As a quick reference of the main characteristics of the Indigenous Communities and Nationalities with which FED Foundation has collaborated and developed joint efforts and projects during its corporative life, we could mention the following: The Awá, are an ancient indigenous people of They practice a form of agriculture called "slash Ecuador and . They primarily inhabit the and mulch," which involves clearing small parcels of provinces of Carchi and Sucumbios in northern land (about 1.25 to 5 acres) and leaving the fallen Ecuador and southern Colombia, particularly the plants and trees to decay. Within days the departments of Nariño and Putumayo. Their vegetation turns to a layer of humus, favorable for population is around 32,555. They speak a planting. These parcels are cultivated for two or language called Awa Pit. three seasons, then left fallow for periods of over seven years. They practice intercropping and grow Reserve: The Awa Reserve was established in many different varieties of manioc and plantains. northwestern Ecuador in 1987. The reserve combines indigenous and forestry legislature, so They also grow corn, Colocasia, Xanthosoma, that the Awa people could manage the forest and beans, sugarcane, hot peppers, chirimoya, tomato, their own lands. This reserve is in the Chocoanos tamarind, mango, achiote, borojo, naranjilla, Forest within the Tumbes-Chocó-Magdalena papaya, inga, avocado, peach palm, and other region, one of the most biodiverse places on the useful plants. The trees outlive the annual plants planet, however logging and mining interests are and foster regrowth while the plots are left fallow. illegally active in the reserve. Awa hunt game such as the Central American The Awa traditionally hunt, gather, fish, and Agouti, paca, collared peccary, brocket deer, cultivate plants. Today, they also farm livestock, iguana, and several birds. Hunting is regulated on such as chickens, ducks, guinea pigs, and pigs. Awa land. are an ethnic group who live According to Chachi oral tradition, they in the rainforest area of northwestern originated in in the Esmeraldas on the northern coast of Ecuador. mountains near Ibarra, fleeing after the They live by the Cayapas River in the Centro Castilian invasion and spent time in El Encanto, a section of the Cotacachi Chimborazo. They were forced to settle in the Cayapas Ecological Reserve, as do Afro area after the Spanish conquest of Ibarra, Ecuadorian people; the two groups have co- which led them to move to Esmeraldas. existed in the forest for about 400 years. There are approximately 5,000 people. The Cofan (endonym: A’i) people are an An oil industry waste water dumping pit was dug in indigenous people native to Sucumbíos Province the Sucumbíos Province of Ecuador's Amazon in northeast Ecuador and to southern Colombia, 2005 to the locals' disgust. Later in 2009, they filed a between the Guamués River (a tributary of the class-action legal suit in Ecuador against the oil Putumayo River) and the Aguaricó River (a tributary company Texaco, which had been bought out by of the Napo River). Their population is now only Chevron in 2001. They legal claim is that, between about 2,100 people, down from approximately 1964 and 1990, Texaco dumped 18,000,000 gallons 15,000 in the mid-16th century, when the Spanish of post-drilling wastewater into the rainforest crushed their ancient civilization, of which there are around the north western town of Lago Agrio, still some archeological remains. They speak the heavily contaminating the land and threatening Cofán language or A'ingae. the health of up to 30,000 Amerindians and local peasants who live there. Cases of cancer had The ancestral land, community health and social increased dramatically in the region since oil drilling cohesion of Cofan communities in Ecuador has began. The Cofan are entitled to live in and patrol been severely damaged by several decades of oil the 195-square-mile (510 km2) Cofan Bermejo drilling. However, reorganization, campaigning for Ecological Reserve (Reserva Ecológica Cofán land rights, and direct action against encroaching Bermejo), which was created on January 30, 2002. oil installations have provided a modicum of The Cofan are presently in control of almost 4,000 stability. Major settlements include Sinangué, square kilometres (1,000,000 acres) of rain forest. Dovuno, Dureno and Zábalo, the latter of which has Although this may seem like a lot, it is only a fraction retained a much more extensive land base. The of the more than 30,000 km² originally belonging to Cofán are an ancient civilization of Chibchan their former nation. people and have lived in the region for many centuries. : Ecuador is recognized The Siona’s tradition and culture has been internationally for its biodiversity, but did you heavily impacted by the introduction of the know, Ecuador also boasts its diverse outer world. Before, the Siona relied on hunting, nationalities? Ecuador has over a dozen fishing, and farming for survival, but now, their nationalities located in its Coast, Andes, and lands have been polluted and forever Amazon. The Siona Nationality was once paired damaged extractive resources practices and with the Secoya Nationality, and was once foot print. Fortunately, they have been able to known as Secoya-Siona, however, in recent conserve several aspects of their ancient decades, the Siona have independentized itself culture. They are well known for their knowledge completely from the Secoya. of medicinal plants, and healing abilities. The Siona have also conserved their native The Siona not only live in Ecuadorean land, but language: Pai’koka. also in two other Andean countries: and Colombia. In Ecuador, the Siona live in the towns of Putumayo and Shushufindi, belonging to the Province of Sucumbíos, in the Ecuadorean Amazon. It is difficult to say how many Siona have survived the effects of deforestation, and colonist settlement in general, but it is estimated that a mere 400 Siona still occupy their lands. The Tsachila People, also called the This tradition is believed to have been a Colorados (colored people), are an paliative measure from a time when the indigenous people of the Ecuadorian tsachilas were exposed to the ravages of province of Santo Domingo. Their native Smallpox. A Tsáchila Shaman asked a Spirit to language is Tsafiki, a member of the guide them to a cure by ceremony and Barbacoan linguistic family and translates to prayer. They were guided to an Achiote bush. mean "true word". Tsáchila man guiding a forest walk near Santo Domingo de Los They covered themselves completely with the Colorados. Their population had reached red juices of the seed-pods and after a few 2,640 habitantes. days the mortality in the group was drastically The Tsachila people are located near the reduced. They are forever grateful to this base of the Andes Mountains. The province plant for the protection that it offered to the has a serface area of 3,857 km², an altitud of entire community from Smallpox. The shape 625 m, and is located 120 km from the Pacific of their hair style is fashioned to look like the Ocean. Ecuador’s northwestern zone is the seed pods. zone that receives the most rainfall in the country. Men of this ethnic group are easily They speak the Tsafiki or Tsáchila language of distinguishable for an elaborate head the Barbacoan . Men wear decoration that they style by shaving the horizontally striped cobalt blue/black and temporal areas of their heads and shaping white skirts, and the women wear brightly the remaining hair into a helmet-like feature colored horizontally striped skirts. with a mixture of grease and [annato] sap/seeds which achiote. Seecoya People: Also known as Siekopai, are Having long managed to maintain their an indigenous peoples living in the culture, the are now, because of Ecuadorian and Peruvian Amazon. They missionary activity, the presence of oil speak the Pai Coca, which companies and colonists from other parts of is part of the Western Tucanoan language Ecuador, in a process of being culturally group. In Ecuador the Secoya number about assimilated to the rest of Ecuadorian society. 400 people who for the most part are located in three settlements, Eno, San Pablo de The Secoyas have lived in the area between Katitsiaya and Siecoya Remolino, all found on the Putamayo and Napo in what is now the banks of the . Colombia, Ecuador and Peru for centuries. In the 1930s the Secoya people were heavily Their Ecuadorian territory covers 40.000 affected by the rubber boom in the Amazon. hectares along the Shushufindi, Aguarico, and Cuyabeno river in the state of Sucumbios. Until recently they shared territory with the Siona people, with whom they are sometimes considered a single population, although both peoples have independent governance. In Peru the Secoya population numbers about 700. The Siona people are an indigenous The Siona live in Sucumbios province in ethnic group living in the Ecuadorian Ecuador, mainly in the Cuyabeno Wildlife Amazon or Oriente (est. population 250 in Reserve. Besides some traditional Ecuador), and in Colombia (est. activities for subsistence, they have been population 300 in Colombia). participating in the tourism activities since the 1990s. They share territory along the Shushufindi, Aguarico, and Cuyabeno river with the Nevertheless, their participation in the Secoya people, with whom they are tourism sector has generated various sometimes considered a single sociocultural and economic changes population. The is a such as immigration to neighboring cities, Tucanoan language. gender issues, economic dependency on tourism revenues. The Huaorani or Waorani, are native Amerindians from As many as five communities – the , the the Amazonian Region of Ecuador (Napo, Orellana Huiñatare, the Oñamenane, and two groups of the and Pastaza Provinces) who have marked differences – have rejected all contact with the from other ethnic groups from Ecuador. The alternate outside world and continue to move into more isolated name Auca is a pejorative exonym used by the areas. neighboring Quechua natives, and commonly adopted by Spanish-speakers as well. Auca – awqa in The word Waorani means "humans" or "men" in Wao Quechua – means "savage". Tiriro. Before the mid 20th century, it included only those kin associated with the speaker. Others in the They comprise almost 4,000 inhabitants and speak the ethnic group were called Waorani, while outsiders Huaorani language, a linguistic isolate that is not were and are known by the derogatory term Cowodi. known to be related to any other language. This structure duplicates the in-group/out-group naming conventions used by many peoples. It reflects Their ancestral lands are located between the Curaray a period of traumatic conflict with outsiders during the and Napo rivers, about 50 miles (80 km) south of El 19th and early 20th century rubber boom / oil Coca. These homelands – approximately 120 miles (190 exploration. km) wide and 75 to 100 miles (120 to 160 km) from north to south – are threatened by oil exploration and The Waorani believe that all life exists spiritually and illegal logging practices. In the past, Huaorani were physically and do not observe a separation between able to protect their culture and lands from both these states of being. To the Waorani as many other indigenous enemies and settlers. cultures the directions North, South, East and West are sacred. They believe that a person who dies walks a In the last 40 years, they have shifted from a hunting trail to the afterlife from the West to the East, which has and gathering society to live mostly in permanent a large anaconda snake lying in wait. forest settlements. To be continued… Continue… The Waodani notion of time is particularly oriented to Those who have not led a good life will not escape the the present, with few obligations extending backwards snake and not be able to travel east, instead they will or forwards in time. Their one word for future times, journey to the West and return to Earth to become baane, also means "tomorrow". animals, often termites. This underlies a mix of practices that recognize and respect animals, but does not As of 2012, the Huaorani have about 6,800 km2 (2,600 shield them from harm for human use. sq mi) of land, about one third of their original territory. Some work with tourism companies, and others obtain education until university level. Half of the small Their Shamans identify with Jaguars spiritually. A children attend schools in Spanish, but others still spend Waorani may become a shaman at any age but must their days living off of the land. be chosen. In the Waorani belief system, jaguar shamans are able “to become as or enact as a jaguar, Land rights[edit] at this time they can telepathically travel through time In 1990, the Waorani won the rights to the Waorani and distance to communicate with other Guarani Ethnic Reserve 6,125.60 km2 (2,365.11 sq mi). The [Waorani] and shaman anywhere.” protected status of Yasuní National Park, which overlaps with the Waorani reserve, provides some Plants, especially trees, continue to hold an important measure of environmental protection. interest for the Waodani. Their store of botanical knowledge is extensive, ranging from knowledge of materials to poisons to hallucinogens to medicines. Shamanic ethnomedicine uses the beverage and a newly identified mushroom (Dictyonema huaorani) with the analogous substance of Psilocybe genus. The Zápara People, are an indigenous people native to the along the Their numbers dwindled precipitously to the border of Ecuador and Peru. They once point where there are only a few who speak occupied some 12,000 mi² between the their native language. Today, only four Napo River and the Pastaza. Early in the 20th Sápara people, all aged over 70, still speak century, there were some 200,000 Zapara. the Záparo language with some degree of From the year 2009 on the Ecuadorian Zápara fluency. call themselves Sápara. The official name is Sápara Nation of Ecuador. The UNESCO declared the Záparo language as an "Oral and Intangible Heritage of They ate palm hearts as their main vegetable Humanity" in 2001. and they fished the many rivers of their jungle home. Using blowguns and bamboo darts, The Sápara, along with the Kichwa and they hunted tapirs, peccaries, wood-quail, Shiwiar mentioned above, have made it clear and curassows. They did not hunt spider through multiple assembles, congresses, and monkeys because they believed them to be in indigenous declarations that they do not their ancestors. The 20th century demand for want extractive industry, such as oil rubber led to the destruction of much of their exploitation, in their territory. jungle (and the animals who lived in it) and the enslavement of the people. The men were forced as slaves to cultivate rubber. The women and girls were raped and forced into sexual slavery. The Achuar are an Amazonian community of some 18,500 individuals along either side of the border in between The Achuar follow an astronomical calendar of seasonal Ecuador and Peru. As of the early 1970s, the Achuar were resources, like the fish season, which is divided into days, one of the last of the Jivaroan groups still generally moons, and year. unaffected by outside contact. The Achuar speak a and Achuar-Shiwiar The name Achuar means “the people of the aguaje language, dialects of the Jivaroan languages. palm”. is present in Achuar lifestyle and witchcraft is occasionally practiced by both ritual specialists and laypersons. An Achuar life centers on the domestic household, which example of this is an institutionalized form of reciprocal consists of a basic family unit often including close relatives. violence that entitles a person to revert any harmful Although the Achuar ideal is household autonomy and incidents or material another sent. Jivaroans, of which the independence in terms of subsistence economy, there are Achuar are a sub-group, ascribe to a particular form of the usually about ten to fifteen households within the society pan-Amazonian animistic cosmological phenomenon dispersed throughout the area but still in a relatively close known as 'Amazonian perspectivism,' in which many distance of each other. The standard Achuar home is animals and plants are understood to possess human souls, settled near a river or lake, but within a distance from although their bodily appearance is different. Animals with major waterways because of mosquitoes and to protect human souls are significant for the Achuar, as they the household against raids by canoe. A large yard and represent a form of socialized nature. gardens then surround the home on the outside. The size of a house plays a pivotal part in the ego of an Achuar man. Due to the development of the Amazon Rainforest the Achuar people’s numbers and livelihood has been Conflicts within the Achuar society are minimal. The declining. When oil was discovered in the Amazon in 1964 constant fight is between neighboring tribes and when oil companies began to make claims on land for tensions greatly increase, the Achuar find refuge in large development and profit. Such claims, their development, protected houses that hold six to seven families. and a history of violent attacks on oil investment installations throughout the Amazon have resulted in the Achuar being excluded from a portion of operational & drilling areas in the territory traditionally claimed by the Achuar. The Shuar are an indigenous people of Ecuador and Peru. They are members of the , who are Shuar generally do not believe in natural death, although Amazonian tribes living at the headwaters of the Marañón they recognize that certain epidemics such as measles River. and scarlet fever are diseases introduced through contact with Europeans or Euro-Americans. They fought primarily Shuar, in the Shuar language, means "people." The people with spears and shotguns, but—like many other groups in who speak the Shuar language live in tropical rainforest the region—also believed that they could be killed by between the upper mountains of the Andes, and the , invisible darts. tropical rainforests and savannas of the Amazonian lowlands, in Ecuador extending to Peru. Shuar live in various They have many plants that they use for common places — thus, the muraiya (hill) shuar are people who live everyday illnesses. Most people know these plants and in the foothills of the Andes; the achu (swamp-palm) shuar how to prepare and use them. Occasionally, an older (or Achuar) are people who live in the wetter lowlands east woman will be asked for advice or help especially with of the Andes (Ecuador and Peru). fertility control, childbirth and new infants. "Piripiri" (Cyperus species) are used for a variety of ailments. In the 19th century muraiya Shuar became famous among Europeans and Euro-Americans for their elaborate process Thanks to the work of the Federation Shuar identity is very of shrinking the heads of slain Achuar. Although non-Shuar strong. Most Shuar also identify strongly to the Ecuadorian characterized these shrunken heads (tsantsa) as trophies of nation-state and have entered Ecuadorian electoral warfare, Shuar insisted that they were not interested in the politics. Many Shuar also serve in the Ecuadorian Army, heads themselves and did not value them as trophies. and the Army has appropriated the perception of Shuar as Instead, they sought the muisak, or soul of the victim, which "fierce warriors", forming elite "Iwia" units of Shuar soldiers was contained in and by the . Shuar men (although all commissioned officers are non-Shuar). These believed that control of the muisak would enable them to units distinguished themselves in the 1995 Cenepa War control their wives' and daughters' labor. between Ecuador and Peru.

In the last few years, conflict emerged as result of mining projects in the provinces of Morona Santiago and Zamora Chinchipe. The are the indigenous peoples of who speak any of the Quechua languages. Most In almost all Quechua ethnic groups, many traditional Quechua speakers live in Peru, Ecuador, Bolivia, Argentina, handicrafts are an important aspect of material culture. This Chile and Colombia. includes a tradition of weaving handed down from Inca times or earlier, using cotton, wool (from llamas, alpacas, The most common Quechua dialect is . guanacos, vicunas) and a multitude of natural dyes, and The Kichwa people of Ecuador speak the Kichwa dialect; in incorporating numerous woven patterns (pallay). Colombia, the speak .

The Quechua word for a Quechua speaker is runa or nuna The most distinctive part of men's clothing is the handwoven ("person"); the plural is runakuna or nunakuna ("people"). poncho. Nearly every Quechua man and boy has a poncho, generally red in colour decorated with intricate Beginning with the colonial era and intensifying after the designs. Each district has a distinctive pattern. In some South American states had gained their independence, communities such as Huilloc, Patacancha, and many large landowners appropriated all or most of the land and villages in the Lares Valley ponchos are worn as daily attire. forced the native population into bondage (known in However most men use their ponchos on special occasions Ecuador as Huasipungo, from Kichwa wasipunku, “front such as festivals, village meetings, weddings etc. door”). Harsh conditions of exploitation repeatedly led to revolts by the indigenous farmers, which were forcibly As with the women, ajotas, sandals made from recycled suppressed. The largest of these revolts occurred 1780-1781 tyres, are the standard footwear. They are cheap and under the leadership of José Gabriel Kunturkanki. durable.

A distinction is made between two primary types of joint A ch'ullu is frequently worn. This is a knitted hat with earflaps. work. In the case of mink'a, people work together for The first ch'ullu that a child receives is traditionally knitted by projects of common interest (such as the construction of his father. In the Ausangate region chullos are often ornately communal facilities). Ayni is, in contrast, reciprocal adorned with white beads and large tassels called t'ikas. assistance, whereby members of an ayllu help a family to Men sometimes wear a felt hat called a sombrero over the accomplish a large private project, for example house top of the ch'ullu decorated with centillo, finely decorated construction, and in turn can expect to be similarly helped hat bands. Since ancient times men have worn small woven later with a project of their own. pouches called ch'uspa used to carry their coca leaves. FED Foundation and its strategic allies’ work has been orientated to:

ü Institutional and private reengineering . ü Strategic planning. ü Total Regulatory Improvement of Local ü Government processes. Governments. ü Indigenous Communities Development Planning ü Financing, corporate structuring and fiduciary Advisory. models. ü Techno-political advice to senior management. ü Private-Community Strategic Alliances. ü Training in government and senior management ü Economic-environmental valuation and analysis techniques. of environmental services. ü Business management.o Social management. ü Design and Management of Projects and ü Local Management REDD +. responsible companies. ü Clean Development. ü Development of projects in renewable energy ü Institutional strengthening. and responsible economic activities with the ü Institutional redesign. environment. ü Regulatory improvement. ü Development of financing systems for forestry ü IWA 4 Certification, Trusted Governments ISO and renewable energy projects. 9001-2008. ü Clean Development Mechanism (CDM-Kyoto ü Reengineering process. Protocol and Voluntary Markets). Among its main activities could be mentioned the following:

ü (2013-To date)Exclusive promoter of the certification ü 2008) Elaboration of the PIN for REDD project in the project of the Yasuni Conservation Units, UCYs in the province of Morona Santiago. Ecosystem Yasuni Curaray with an approximate ü (2007) Elaboration of the PIN for sustainable forest extension of 1 million and a half Has. management project in the province of Pastaza. ü (2013) Pre-sale of carbon certificates VCUs, in an ü (2006-2008) Proposal and dissemination of REDD amount of 17 million tco2e to the company BLUFOREST Methodology in Pichincha, Santo Domingo of the In the framework of the REDD + MNE Project. Tsachilas and provinces of the Ecuadorian Amazon. ü (2011-2012) Implementation and design of the Social ü (2006) Elaboration of the PIN for reforestation project in Empowerment System and Comprehensive Safeguards the province of Esmeraldas. in REDD + processes (Technical Accompaniment ü (2005) Advisory to the Association of Ecuadorian Guide). Municipalities for the creation of the Municipal School ü (2010 To date) - Exclusive Promoter of the REDD + of Government and Sustainable Local Management. process north Commonwealth of Ecuador. ü (2004-2005) Elaboration and technical and ü (2010, 2011, 2012) Development of 32 Compensation administrative management of the Waorani Nationality Plans for the REDD + MNE process in the provinces of Life Plan. Carchi, Imbabura, Sucumbíos and Northwest of ü (2004) Elaboration of the Waorani Forest Assessment. Pichincha. ü (2003) Elaboration of the Shiwiar Community ü (2009) Previous studies for the development of a Assessment. proposal to implement the REDD mechanism in the ü (2003) Elaboration of the Appraisal of Bufeo Property. province of Sucumbíos. ü (2009) Strategic Plan of the Patronage San Miguel de Ibarra. ü (2009) Final report on the process of citizen oversight and transition of the municipal government of Canton Latacunga. Among its main activities could be mentioned the following (Continue…):

ü (2003) Elaboration of the Evaluation of the Commune ü (2000) Elaboration of the Evaluation of Environmental Pavacach ValleHermoso. Services of the forests of the canton Santiago de ü (2003) Design of Planning Systems for PACT, Ecuador. Méndez. ü (2002) Cantonal Development Plan, Municipality of ü (2000) Elaboration of the Evaluation of Environmental Yanzatza, province of Zamora Chinchipe. Services of the forests of the canton of Limón Indanza. ü (2002) Evaluation of the Design and Methodologies of ü (2000) Elaboration of the Evaluation of Environmental the ECORAE Master Plan. Services of the forests of the Canton Logroño. ü (2002) Graduate Diploma in Government, Planning and ü (1999) Institutional Redesign, Logroño-Morona Santiago Resource Management. municipality. ü (2001) Plan of Social Development of the Ecuadorian- ü (1999) Institutional Redesign, Santiago de Méndez- Austro. Morona Santiago municipality. ü (2001) Sustainable Local Development Plan, Limón ü (1999) Environmental Services, Mechanism for Indanza-Morona Santiago municipality. Attracting Financial Resources (International Financial ü (2001) Sustainable Local Development Plan, System). Municipality Logroño-Morona Santiago. ü (1998).- Development Plan of the Azuay province. ü (2001) Sustainable Local Development Plan, Santiago ü (1996).- Development Plan of Cuenca municipality. de Méndez-Morona Santiago municipality.(2001) ü Assessment. Reengineering of the company I2E of Electrical Services ü (2003) Elaboration of the Appraisal of Bufeo Property. and Systems of Intelligent Buildings of excellence. ü (2000) International School of Government and Senior Management of the Ecuadorean Technological University of Ecuador and Aconcagua de Chile. An Example of FED Foundation’s Intervention in Favor of Improving Life Standards of Indigenous Communities AN EXAMPLE OF FED’S WORK IN CONSERVATION CERTIFICATION AS A PARTIAL SOLUTION FOR INDIGENOUS COMMUNITIES:

Even though, FED Foundation has developed several important types of projects during its corporative life, this conservation certification project is financially and technically important to mention as an example of FED’s work and it’s intention to find viable responsible ways of protecting the Indigenous Communities’ natural and cultural heritage, trying to find an acceptable way of compensating its affectation due to the western development.

Each of the phases have been considered as part of a larger integrated proposal including the oil and mining industries, which could serve as a sound project to be replicated in other countries.

It seeks to practice responsible production, even of complicated industries, in highly biodiverse ecosystems in harmonious relationship with the environment, and with the ancestral indigenous communities inhabiting them.

The proposal was discussed as an responsible alternative for the Ministry of Strategic Sectors, and as such, has acquired the support of several indigenous communities as well as of the central and local governments, thus diminishing the overall risk of the entire project.

For further understanding of this integrated project, please read the following slides. CONSERVATION CERTIFICATION PROJECT

CONSERVATION&CERTIFICATION&PHASES&CONSIDERED&FOR&ECUADORIAN&PROJECT

PERCENTAGE&OF& TOTAL&AREA&OF& TERRITORY&ABLE&TO& ESTIMATED&AREA&FOR& PHASE&LOCATION TERRITORY CERTIFICATION CERTIFICATION

1 CURARAY'('YASUNÍ'(KICHWAS'&'WUAORANIS)'('PASTAZA'PROVINCE '''''''''''''''''''''''''' 412,000.0 60% ''''''''''''''''''''''''''''' 247,200.0 2 PAVACACHI'(KICHWAS)'('PASTAZA'PROVINCE '''''''''''''''''''''''''''' 84,000.0 75% ''''''''''''''''''''''''''''''' 63,000.0 3 ANDOAS'TERRITORY'('PASTAZA'PROVINCE '''''''''''''''''''''''''''' 82,000.0 65% ''''''''''''''''''''''''''''''' 53,300.0 4 ZÁPAROS'TERRITORY('PASTAZA'PROVINCE '''''''''''''''''''''''''' 251,000.0 60% ''''''''''''''''''''''''''''' 150,600.0 5 COFANES'TERRITORY'('SUCUMBÍOS'PROVINCE '''''''''''''''''''''''''' 420,000.0 60% ''''''''''''''''''''''''''''' 252,000.0 6 SIONAS'TERRITORY'('SUCUMBÍOS'PROVINCE '''''''''''''''''''''''''''' 80,000.0 65% ''''''''''''''''''''''''''''''' 52,000.0 7 SECOYAS'TERRITORY'('SUCUMBÍOS'PROVINCE '''''''''''''''''''''''''' 120,000.0 60% ''''''''''''''''''''''''''''''' 72,000.0 8 PLAYA'DE'ORO'(AFRO(AMERICAN)'AND'RELATED'AREAS'('ESMERALDAS'PROVINCE '''''''''''''''''''''''''''' 40,000.0 85% ''''''''''''''''''''''''''''''' 34,000.0 9 ACHUAR'TERRITORY'('MORONA'SANTIAGO'AND'PASTAZA'PROVINCES '''''''''''''''''''''''''' 600,000.0 60% ''''''''''''''''''''''''''''' 360,000.0 10 INTAG'(MINING'PROJECT)'IMBABURA'PROVINCE'(GARCIA'MORENO'COUNTY) '''''''''''''''''''''''''''' 70,000.0 60% ''''''''''''''''''''''''''''''' 42,000.0 APPROXIMATED'TOTAL'AREA'SUSCEPTIBLE'FOR'CERTIFICATION'(hectares) '''''''''''''''''''''''''' 1,326,100.0

NOTE:'CURARAY'('YASUNÍ'Phase'in'already'under'development,'so'it'is'advisable'to'be'the'first'phase'to'finish.'The'order'in'which'the'other'projects'could'be'developed'will'be'a'function' of'a'joint'analysis'with'the'investors'and'the'ability'for'organizing'the'required'technical'teams'for'each'phase.

It is strongly recommended to start simultaneously with all the proposed projects, so the projects that are more prepared will finished first and will open the space for the least developed projects. RESPONSIBLE OIL AND MINING OPERATING ACTIVITIES IN ECUADORIAN TERRITORY This proposal is about a responsible way of intervention, that minimizes potential adverse effects on biodiversity and indigenous communities, paring oil extraction operation activities with the enhancement of communities, especially in the buffer zone of oil and mining production projects.

These techniques could be applied throughout the country in other important ecosystems that are also being considered as sources for integrated national strategic activities. The proposals should be observed with, at least, the following 4 key strategies:

Technologically efficient oil and mining production systems Mechanisms for national and that are socially and 1 municipal tax incentives that environmentally responsible. 3 promote responsible Responsible Oil and businesses. Mining Production

Compensation mechanisms, Efficient remediation response community responsible systems for any unexpected relationships and UCs 4 pollution problems. certification systems. 2 RESPONSIBLE OIL AND MINING ACTIVITIES IN ECUADORIAN TERRITORY

In order to achieve a responsible intervention, it is required to have an efficient, technologically accurate, production system. This first phase should assure implementation of the best technologies for oil and mining production, transportation, storage and logistics of goods and people. At the same time it should include cost effectiveness and responsible management. For evaluating these activities it is recommended that a permanent cost-benefit analysis be carried out, as well as an effective monitoring and production certification system. 1 It is also recommended to develop and implement a “restricted logistic system” for staff members, field workers, supply and material delivery. It is necessary to avoid road construction whenever possible in order to avoid colonization and illegal deforestation. Alternatives such as air controlled transportation, cable cars, etc. are to be preferred.

It is suggested that in order to achieve oil production certification, standards as proposed by the likes of Equitable Origin be conducted. (http://www.equitableorigin.com/)

The main objective is to create a compensation model orientated towards the indigenous communities living in the ecosystems around the productive land described in the project. This compensation system will originate from the 2 financial benefits of conservation certification units (UCs) model under development that the communities are destined to receive. Likewise, it is an integral part of the project to focus efforts towards improving the living standards of communities, and at the same time allowing for fluid communication among the Government, the strategic production sectors, and the communities located in the projects’ buffer zones, all the while looking towards obtaining cultural respect, social and environmental responsibility, efficient zoning and protection of ecosystems throughout. This system will also provide financial and technical mechanisms to support the change in the production matrix towards “green markets”, as desired by the Central Government of Ecuador. It is recommended that support be given to the Proposal for Conservation Certification project, which allows conservation certificates to be issued and sold. Furthermore indigenous communities would receive required compensation, and businesses will be able to demonstrate corporate responsibility. RESPONSIBLE OIL AND MINING ACTIVITIES IN ECUADORIAN TERRITORY

To support Axis 2 development, it is recommended that companies operating in Ecuador, and especially in and around the area of influence of the project, be encouraged to support this model through the purchasing the certificates UCs. In exchange for doing so, companies would receive future legal and tax incentives, based on national legislation instruments as 3 well as with local ordinances issued by the Autonomous local governments.

National and municipal tax and legal incentives for responsible companies could create a captive market for Conservation Units (UCs), and could be extended to any company that demonstrates corporate responsibility as well as to other similar projects on other ecosystems.

Finally, in the rare case that any environmental damage occurs during operation, within the project territory or its buffer zone, it will be imperative to have an efficient remediation system for urgent damage control.

4 Within other organizations, Global Restoration Foundation (http://www.restoretheglobe.org/) has been signaled out as a possible efficient aide in the case of damage. WHAT IS THIS ALL ABOUT? u Develop a program for the conservation and sustainable management of important ecosystems in Ecuador. Important ecosystems are those that include, not only a great biodevrse system, but those where the so-called ancestral peoples inhabit. u Issue ”Conservation Units” (UCs ) to be negotiated in the compliance and/or voluntary markets, creating a compensation mechanism for the conservation and sustainable management of ecosystems, orientated to indigenous and farmer communities affected by development processes. u Develop a compensation system for connecting local communities to strategic industry sectors that allow for a model of social and environmental responsibility, as well as providing mechanisms that support the desired change in the production matrix in the area of influence. u The return on private investment and profit generation will most probably be based on trade and pre-sale of "UCs " in the international and national voluntary markets. Trading in a compliance market would also be a possibility if circumstances allow it in the future. u The UCs may be used, among other things, to eliminate the “carbon footprint" of companies and individuals. Also, they may be used to meet the social and environmental responsibilities of corporations and people at Yasuní, as well as in other environmental spots. Furthermore, the may used to comply with the requirements of protection and care of ecosystems where the oil and mining industries develop activities. Finally, they may be sold through agreements of UCs with interested parties. u The project will provide an innovative and new "green corporate social marketing strategy" for investors and related companies. Considering the boom of activities and interests that have developed around Yasuní and other ecosystems, climate change mitigation, social and environmental responsibility are also cornerstones of this venture. u Through a financial mechanism, overseen by a globally recognized organization such as ICONTEC, this project also entails taking advantage of the marketing and positioning acquired by Yasuní around the World. OPERATION PROPOSAL FOR THE CERTIFICATION PROCESS AND COMMERCIALIZATION OBJECTIVES: OF YASUNÍ CONSERVATION UNITS (UCYs) The Parish Council has proposed a system for the certification of Yasuní METHODOLOGICAL OBJECTIVE: This methodology aims to present a certification system for Conservation Unit Conservation Units (UCYs). issuance that allows payment for high biodiversity and unique heritage (based on ancestral culture knowledge). This compensation would be proportional to the economic and environmental value of any given ecosystem. ü To achieve the development of this Certification Methodology, the The reference value of UCYs will be a function of the VEA and the amount of certificates tradable. It will also be a function of the willingness to pay (WTP) of markets. process should be validated by ICONTEC based on a analysis of the Ecosystem Conservation Value. P(UCYs)= f(VEA, Number of UCYs issued, WTP of the market, number of hectares involved, number of years of each period of analysis) ü To implement a methodology which would be applicable to extraordinary The suggested value of UCYs provided will serve as a benchmark to price for the market based on an analysis of ecosystems containing high WTP. The final price received will depend on the type and quality of UCYs auctions, the initial results, as well as the biodiversity, as well as significant monitoring process of the conservation project. It will also be a function of the number and quality of potential markets. indigenous cultural heritage. These strategies will transform UCY commercialization into an efficient and feasible way to support the ü To suggest a commercialization conservation of ecosystems; a wise way of compensating communities; a way to avoid potential damage to model for UCYs in order to support biodiversity, and to create strong relationships between communities and the Government. sustainable development and preservation of the area of influence Benefit Distribution of Yasuní National Park. Benefit sharing: ü To define a licensing system in order ü If certification is developed within the (YNP) Yasuní National Park’s boundaries, resources will be managed directly to authorize the commercialization of by MAE and could be shared with communities living inside the Park. UCYs granted by the MAE. ü If certification takes place in the area of influence of the YNP, within private-community lands, UCYs and the !,! resources deriving from their commercialization will belong to said communities, after payment of a commercialization license. !"# = !"! + !"! ! ü If within the private-community lands under certification, there are also acting Socio Bosque Program agreements, the resulting resources from UCY commercialization should be shared between the communities and !,!!! Where: Socio Bosque (as an interesting mechanism for financial sustainability of the Socio Bosque Program). ü The Curaray-Yasuní Fund, created in FAN, will allow the management of the resources orientated to communities VEAt = Total economical-environmental Value (also known as VET) in an efficient and transparent way, as per the agreements signed among the the main actors involved. ü ICONTEC will endorse Valuation Methodologies and will certify the UCYs. SAj= Environmental Services (j) BAi= Environmental Goods (i) Methodological Scheme

Economic and Environmental Goods Social Environmental and services Assessment Safeguards Valuation

Strategies and Conservation Base Line Projects Scenarios

Cost – Benefit Benefit Distribution Analysis

Project Development Certification and Recognition for Conservation Validation Monitoring PHASE 1: Conservation Certification Project for Curaray-Yasuní Territory. Under development LOCATION

ZONE%1 LOCATION COMMUNITIES Colonia'Curaray'Liquino Cuenca'Alta'del'Curaray Pambayacu' 17'Comunidades San'Antonio' Pitacocha Liquino' Atacapi' San'Virgilio Ilipi' Witawaya' Yanapuma' Chuyayacu Pual' Amaruncocha Huito Bellavista Elena Kurintza' Sta.'Cecilia' UBICACIÓN ZONA COMUNIDADES ZONE%2 LOCATION COMMUNITIES Cuenca'Alta'del'Curaray Colonia'Curaray'Liquino 17 Killuallpa'H'Kicwua'Curaray Cuenca'Media'del'Curaray Rayohurco' Cuenca'Media'del'Curaray Killuallpa'H'Kicwua'Curaray 6 6'Comunidades Kallana Cuenca'Media'del'Curaray Bloques'15'H''16'H'17 5 Killuallpa Cuenca'Baja'del'Curaray Pavacachi 3 Jaime'Roldós Cuenca'Baja'del'Curaray Asociación'Kausak'Sacha 5 Siguacocha Territorio'Waorani Waorani'Adoke 18 San'José' Territorio'Waorani Waorani'Mea 7 ZONE%3 LOCATION COMMUNITIES TOTAL 61 Bloques'15'H''16'H'17 Cuenca'Media'del'Curaray Chuvacachi Area'not'included'in'this'Project:'PAVACACHI'(Area'Total:'83,000'has.'Area'certificable:'50,000'has) 5'Comunidades Cochaquingo Nuevo'San'José' Jesuscocha' Guacamayos' ZONE%4 LOCATION COMMUNITIES Pavacachi Cuenca'Baja'del'Curaray Pavacachi TOTAL'NUMBER'OF'SUBHPROJECTS'(ZONES)'TO'BE'DEVELOPED'IN'CURARAYHYASUNÍ'PROJECTS 6 3'Comunidades Valle'Hermoso' PROJECT'NOT'INCLUDED'(To'be'developed'as'a'different'project'due'to'its'individual'importance) PAVACACHI (Not'Included) Nina'Amarun ZONE%5 LOCATION COMMUNITIES Asociación'Kausak'Sacha Cuenca'Baja'del'Curaray Sisa 5'Comunidades Lorocachi Hatun'Playa' Yanayacu Victoria' ZONE%6 LOCATION COMMUNITIES Waorani'Adoke Territorio'Waorani Daipade 18'Comunidades Obepade Awenkado GEOGRAPHICALA Teweno Kenaweno Toñanpade NALYSIS: ZONING Tamointado Tadangado Akado FOR PROJECT 1: Enkedido Kiwado CURARAY - Nemonpade Tzapino Ñaibekado YASUNI Ñaino Meñepade Dayuno Tepapade ZONE%7 LOCATION COMMUNITIES Waorani'Mea Territorio'Waorani Tiwino 7'comunidades Batabodo Bameno Nenkipade Apaika Keweidiono Wentado TOTAL%included:% 58%COMMUNITIES Curaray – Yasuní Project: General Information u Project Location: Province of Pastaza, Municipality of Arajuno, Central Ecuadorian Amazonian Region. u Curaray’s Territory Total Extension: 8,162 km2. u Territory that belongs to Yasuní National Park: 400,000 hectares. u Private project area allocated for certification: 416,200 hectares. u Population: 2,685 inhabitants. u Indigenous tribes: Huaroni, kichua, Shuar, Taromenane and Tagaeri (uncontacted indigenous groups). u Communities involved: Villano, Lorocachi, Golondrinacocha, Wamuno, Tzapino, Killualpa, Jaime Roldos, Jesus Cocha, Toñampari and Ceylon. u 40% of Yasuní National Park belongs to the Curaray parish. u Area with a very high value in biodiversity (megadiverse area). u Declared by UNESCO as one of the most biodiverse areas on the planet. Blue Circle: Communitary- private certification project: 412,000 hectares

YASUNI - CURARAY Conservation Certification Project MAIN PARTICIPANTS RELATED TO PHASE 1 PROJECT UP TO DATE: ü President of the National Assembly. ü MAE (Ministry of Environment through the Undersecretary of Natural Heritage) ü Mrs. Ivonne Baki (President Representative) ü Parish Council of Curaray. ü 61 Waoranis and Quichua Communes. ü ICONTEC (Certifying Corporation). ü FED Foundation (Exclusive Project Promoter). ü Professor Dr. Stephen E. Williams, Professor and Research Associate, University James Cook University. ü Global Restoration Foundation. ü Equitable Origen. ü FAN (Environmental National Fund) ü Mercedes Cachago and Norwegian Group related to Life Sciences. University of Norway. ü GIZ, Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH CORPORATIVE TECHNICAL ALLIANCES

u ICONTEC of Colombia u Terra Global Capital u Terra Carbon u 33 Asset Management u Gestión Ambiental Estratégica u Global Environmental Alliance International

Note: In any event, Foundation FED kindly request, before allowing any contact coming from any third party about Curaray Project, to have an specific and duly signed Non-disclosure, Non-circumvention and confidentiality agreement in this regard. SUMMARY OF SOCIAL BENEFITS The main part of the benefits of the project will be orientated to the Ancestral Communities involved in the different projects, specifically 80% of the UCCs will be orientated to the increase of living standards of communities and financing their Life Plans. Although an important part of those funds will be orientated to the monitoring costs and other ecosystems preservation and protection costs.

Summarizing the main benefits for the communities will be: ü Participation in the business plans for the forests and the improvement of the standards of life as well as the level of per-capita income. ü Life Plan of the Communities implemented. ü Direct economical compensation strategies. ü Business Incubators organized and helping the development of the communities. ü Several job creation mechanisms. ü Health and education support. ü Relation with Indigenous Corporations from other countries and interchange of experiences. WHAT KIND OF PROJECTS COULD BE RELATED WITHIN THE BUSINESS PLAN OF THE FOREST FOR IMPROVING WELFARE OF COMMUNITIES: ü Water bottling plants. ü Commercial Sustainable Forestry Production. ü Psciculture (fisheries). ü Essences, natural cosmetics, nutraceutics. ü Solid and liquid waste Management. ü Different clean energy generation technologies. ü Nutrition and food projects. ü Fiber and Agro-Industrial Production. ü Butterfly and Zoo ornamental breeding. ü Adventure and Natural Tourism. ü Resorts & Spa in moorland and rain forest. ü Scenic beauty and Scientific Tourism. ü Development of a ZEDE (Special Zone for Economic Development) including a free commercial zone, industrial and scientific park related to sustainable production and clean energy. ü Among others. Green Markets as a solution to Responsible Forest Management

Ø It's time to pay attention to capital providers and entrepreneurs and investors who value this approach nationally and internationally,

Ø Those who do not see the environment as a cost.

Ø Those who see this approach as a great opportunity that besides to give moral and ethical satisfaction, makes very good financial benefits.

Ø Those who are clear on these new trends and are aware of the new financial reengineering tools applied to green markets. WHY BUSINESSES IN ECUADOR MUST BE SOCIAL AND ENVIRONMENTALLY RESPONSIBLE

ü Ecuador has an excellent opportunity to transform nature into a strategic partner that respected and used efficiently, will become as an important economic development factor as has happened in other countries. The companies and corporations that want to develop activities in Ecuadorian lands must examine this alternative, especially if you want to survive and rediscover.

ü Amazon jungle and other forest ecosystems provide a unique scenario of life and beauty, almost impossible to replicate. WHY BUSINESSES IN ECUADOR MUST BE SOCIAL AND ENVIRONMENTALLY RESPONSIBLE

ü Among the right way of using the natural resources we could revise the opportunities given by green markets that must operate within efficient technologies and procedures that are environmentally friendly and socially responsible. ü These procedures include several potential lines of business: clean production, renewable energy, efficient use of biodiversity, bio-prospecting, eco-products, eco- tourism and nature tourism, ornamental zoo-nurseries, production of exotic flowers, non-timber activities, resins, essences, fibers, natural cosmetics, nutraceuticals, genetic resources, scientific benefits and negotiation of various environmental services, among others. WHY BUSINESSES IN ECUADOR MUST BE SOCIAL AND ENVIRONMENTALLY RESPONSIBLE

Ø The Ecuadorian Government is committed to support business development that includes social and environmental components as well as technology transfer. Ø Such projects could be benefited from a package of laws and economic and tax incentives. Ø The Government is committed to support strategic partnerships for responsible production and ecosystems preservation.