This is what the new Law for strengthening the mining and energy sectors approved by the Assembly proposes
Ecuador's National Assembly has approved a new Organic Law aimed at strengthening the mining and energy sectors to enhance fiscal revenues and support macroeconomic stability.
On February 26, 2026, Ecuador's National Assembly passed the Organic Law for Strengthening the Strategic Sectors of Mining and Energy. The law is designed to enhance operational performance in these sectors by allowing for regulations that aim to increase fiscal revenues and foreign currency, while also contributing to fiscal sustainability and macroeconomic stability for the state. The law was processed with urgency regarding economic matters and is a response to the ongoing need for more robust regulations in these critical sectors.
Notably, the passing of the law excluded Article 29, which had proposed reducing the percentage of royalties. This particular article would have allowed for a more favorable fiscal treatment regarding profits generated from electricity production in the Special Amazonian Territorial Circumscription. By ensuring that 12% of profits would fund the Common Fund for the Amazon region, the provision aimed to support local investments within the framework established by existing laws governing the area.
The approval of this law signifies a strategic move by Ecuador's government to optimize the economic potential of the mining and energy sectors, which are vital for the country's development. With the introduction of new regulations, the government seeks not only to boost state revenues but also to ensure that these sectors contribute positively to the overarching economic framework, thereby enhancing overall fiscal health and stability in the nation.