The Energy Transition in Ecuador

Ecuador’s energy transition is shaped by the dual challenge of reducing fossil fuel dependence while harnessing its untapped potential in renewable energy and critical mineral development. As one of Latin America’s key oil exporters, Ecuador is seeking to reorient its economy amid mounting fiscal pressures, environmental vulnerability, and shifting global demand for clean technologies. At the heart of this transformation is the strategic development of its copper, gold, silver, and sulfur reserves, resources that are increasingly vital for the global shift toward electrification and low-carbon infrastructure. However, Ecuador’s pathway is neither linear nor uncontested. Mining projects are often met with fierce resistance from Indigenous and rural communities, particularly in biodiverse Andean and Amazonian regions. These tensions play out against a backdrop of weak institutional oversight, legal uncertainty, and a legacy of extractive conflict, all of which complicate efforts to attract responsible investment and build secure supply chains. Ecuador’s participation in international frameworks such as the G77, WTO, and Inter-American Development Bank highlights its balancing act between economic integration and resource sovereignty. As pressure mounts to deliver both environmental stewardship and macroeconomic stability, Ecuador’s energy transition is ultimately a geopolitical test—of how a mid-sized Andean nation navigates global decarbonisation demands while managing the complex politics of extraction at home.