DOMINICAN REPUBLIC Trends and Developments Contributed by: Guillermo Estrella Ramia, Yamel Llenas Lajud, Mariela Santos Jiménez and Valentina Gallo Botero, Estrella & Tupete
The ESG Imperative Agenda in Dominican Infrastructure: From Policy to Practice The Dominican Republic stands at a decisive turning point in its trajectory towards sustainable develop- ment. Over the last two decades, the country has pro- gressively shifted from a compliance-based approach to environmental regulation towards an integrated framework that fuses economic growth, environmen- tal stewardship and social inclusion. What began as a mechanism to protect natural resources under Law No 64-00 on Environment and Natural Resources has evolved into a strategic platform for investment, com- petitiveness and institutional credibility. In this transformation, the Environmental, Social and Governance (ESG) agenda has emerged as the new grammar of responsible development. No longer con- fined to voluntary initiatives or corporate reports, ESG principles now underpin the regulatory, financial and operational frameworks that define how infrastruc- ture is conceived, financed and executed. They have become a unifying language that connects interna- tional investors, local policymakers and private devel- opers under a shared commitment to transparency, resilience and – overall – long-term value creation. This shift reflects both a global imperative and a domestic opportunity. As climate change, demo- graphic pressure and economic diversification reshape global markets, countries that align infra- structure development with sustainability are better positioned to attract high-quality investment. For the Dominican Republic – a Caribbean economy charac- terised by sustained growth, strategic geography and rising infrastructure needs – the integration of ESG offers a path to reconciling environmental protection with economic dynamism. Building an institutional foundation for sustainability The Dominican Republic’s ESG efforts reflect a con- vergence between legal modernisation, policy inno- vation and financial strategy. Over recent years, the country has moved from conceptualising sustainabil- ity as an environmental aspiration to institutionalising it as a legal and financial requirement.
At the centre of this transformation is Law No 64-00, which established the National System for Environ- mental Management. This statute not only introduced the requirement for environmental impact assess- ments (EIAs) but also codified principles of precaution, prevention, restoration and participation. These princi- ples now serve as the legal foundation upon which the ESG agenda rests. The Ministry of Environment and Natural Resources (MIMARENA) has strengthened its technical capacity, integrating climate variables, biodiversity criteria and social safeguards into envi- ronmental licensing. The result is a more transparent and predictable permitting process, which enhances investor confidence while elevating environmental performance. Crucially, this evolution reflects a philosophical change. Environmental protection is no longer per- ceived as a regulatory burden but as a precondition for competitiveness. The Dominican Republic has embraced the notion that regulatory certainty, social legitimacy and sustainable finance are interdependent pillars of modern governance. From regulation to strategic co-ordination The ESG framework is sustained by an ecosystem of complementary instruments that bring coherence to policy, finance and implementation. The most relevant among them are: • Law No 47-20 on Public-Private Partnerships (PPPs) (the “PPP Law”); • National Green and Social Taxonomy (2023); and • 2024 Sovereign Green Bond Framework. The PPP Law represents a watershed in the integration of sustainability criteria into public procurement. By requiring that all partnership proposals undergo com- prehensive assessments of economic, environmental and social impacts, the law ensures that sustainability becomes embedded at every stage, from design and financing to operation and eventual transfer. The General Directorate of Public-Private Partnerships (DGAPP) oversees this process, mandating that pro- jects incorporate measurable ESG indicators. Energy, transport, water and tourism projects, in particular, are now expected to present detailed mitigation and
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