Ecuador is a country known for its diverse ecosystems, which range from the Amazon rainforest to the Andes mountains. The floriculture sector is one of the country’s most significant agricultural industries, contributing to its economy and providing employment to thousands of people, particularly in rural areas. Despite the sector's competitiveness, many small and medium-sized enterprises (MSMEs) in Ecuador face challenges due to high operational costs, limited access to financing, and increasing climate variability. The industry’s profitability is hampered by intense internal competition, coupled with the rising impacts of climate change, such as water scarcity. These conditions have made it difficult for MSMEs to adopt new technologies or expand their operations, jeopardizing both productivity and environmental sustainability.
In recent years, Ecuador’s floriculture sector has also been affected by external shocks like the COVID-19 pandemic, which disrupted international trade and reduced demand for flowers. However, many MSMEs adapted by focusing on domestic sales and e-commerce. Despite these adaptations, the sector faces ongoing challenges related to water scarcity and the need to adopt climate-resilient technologies to ensure long-term sustainability.
CTCN’s Support
The Climate Technology Centre and Network (CTCN) will provide technical assistance to support the evaluation and prioritization of climate technologies that are suited to Ecuador’s floriculture sector. The assistance will specifically target small and medium-sized floriculture enterprises, aiming to enhance their resilience to climate change. This will involve identifying technologies that can improve water efficiency, reduce greenhouse gas emissions, and promote sustainable practices in response to the impacts of climate variability. The project will also address operational challenges that MSMEs face, such as high energy and labor costs, by exploring innovative technologies that could optimize production and reduce expenses.
One of the key aspects of CTCN’s support is to ensure the sector’s sustainability by helping MSMEs adopt climate technologies that are both environmentally and financially viable. The technical assistance will include stakeholder mapping to engage relevant actors, the development of communication materials for implementation, and the establishment of a specialized working group. Moreover, the initiative will quantify the initial investment required for adopting these technologies and identify potential funding sources, ensuring that MSMEs have the financial means to implement these solutions. Strengthening technical capacities, with a focus on gender mainstreaming, will be another critical component, equipping businesses with the skills to utilize climate-resilient technologies effectively.
Expected Outcomes
The expected outcomes from this technical assistance are multi-faceted and geared toward both environmental sustainability and economic resilience. These include:
- Development of comprehensive implementation plans and communication strategies to guide MSMEs in adopting climate technologies;
- Creation of a specialized working group to ensure collaboration among stakeholders in the floriculture sector;
- Prioritization of technologies that enhance access to financing and improve the competitiveness of MSMEs;
- Capacity-building programmes that empower MSMEs with the necessary skills to utilize climate technologies effectively;
- Introduction of business models that optimize the floriculture value chain, integrating the prioritized technologies into daily operations, leading to increased productivity and sustainability;
Seeking Experts
The UN Climate Technology Centre and Network (CTCN) is inviting its Network members to assist Ecuador in this initiative. Interested qualified firms are invited to submit an Expression of Interest (EoI) to participate in the upcoming solicitation for the provision of technical assistance implementation on "Adoption of climate technologies applicable to Micro, Small and Medium Enterprises (MSMEs) in the floriculture sector in Ecuador. Please refer to the processes and documentation available at the UN Global Market Place (UNGM) and here.
In case you are not a CTCN network member yet, you may still apply here.
