| Sustainable Forestry, Ecuador |
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One of Ecuador's most valuable ecological assets is its primary tropical forests, which are being threatened by over exploitation, especially along the coastline. One such area is owned by the Chachi and Awa indigenous people of Ecuador. These two groups own about 80,000 acres of primary tropical forest, a Biodiversity Hotspot which is also the primary source of their income. However, there is often a conflict between the conservation of forest biodiversity and the exploitation of its timber to generate income for the local population.
 The Low Carbon Enterprise Fund has provided ARTEMPO, a wood processing company in Ecuador, with a US$150,000 loan, to be repaid over 10 years following a two year grace period at an interest rate of 5% Through this loan the Enterprise Fund is supporting the preservation of forest biodiversity while recognizing the need for sustainable timber harvesting to provide income for local communities.
Money has already been invested in equipment to produce high quality parquet floors from sustainably harvested timber from the Awa and Chachi people. The flooring will be sold via a Swiss wood products wholesaler who is also involved in the project. This innovative timber value chain will allow ARTEMPO to pay significantly higher timber prices to the forest communities, making sustainable forest management and timber harvesting a commercially viable and attractive option for approximately 100 families.
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