PROJECT: Climate finance in Colombia
Project Reference: TALA-0032
Colombia is one of the most vulnerable countries to climate change. Creating territories and more resilient sectors that generate impact on adaptation actions and direct the country’s development towards a green and less carbon-intensive economy are among the main challenges for the country.
In recent years Colombia has increased innovative climatic initiatives through cooperation agencies, multilateral banks and government agencies. For its part, the Government of Colombia has promoted three ambitious climate strategies: i) the National Adaptation Plan; ii) the Colombian strategy of low carbon development; and iii) the National Strategy of REDD+. A national policy and bill on climate change is being designed and a Financial Management Committee was created in order to develop a climate finance agenda.
In this context it is essential to identify the climate finance needs in the country. Similarly, it is necessary to understand funding opportunities both nationally and internationally (especially in the context of the creation of the Green Climate Fund) and prioritise the most appropriate mechanisms to ensure the flow of sufficient investment to meet with the goals that the country has raised.
With the support of CDKN, this project joined the efforts of the Government and created the framework for Colombia’s climate financing strategy.
Along with the framework, the project identified the financial needs of the country relating to the three major climate change strategies, identified financial sources at the subnational, national and international level and defined and prioritised national and international mechanisms for climate financing to achieve climate compatible development.
There is a close relationship between climate change, development and competitiveness. Through the lens of climate compatible development, the project created a framework for a climate financing strategy that is comprehensive and considers long-term issues in Colombia. Through this project, the Government of Colombia was able to prioritise, channel and leverage financial resources through innovative mechanisms, which demonstrated a high level of preparedness on climate financing.
Project funding: £ 170,860
Direct beneficiaries: Financial Management Committee of Colombia, National Planning Department; Ministry of Environment, Housing and Territorial Development.
Indirect beneficiaries: Ministry of Finance of Colombia, financial institutions.
Implementing organisation: Econometrics
Final products of the project
- Document proposing the institutional arrangement on climate funding for Colombia
- Framework for climate financing strategy in Colombia