Significant public and private investment required for Colombia to meet its Paris Agreement commitments

Colombia

The Fourth Climate Conference Colombia was held in Bogota on 27 November 2017

In order to meet its climate commitments under the Paris Agreement, including reducing emissions by 20 percent from ‘business as usual’ by 2030, Colombia must increase its mitigation investments by 2.3 billion pesos (approx. US$821 million) annually. This figure was announced by Luis Fernando Mejía, Director of the National Planning Department (DNP), during the Fourth Climate Conference Colombia, held in Bogota on 27 November 2017.

During the event, Mr. Mejia presented the ways in which the Colombian government is working to close this finance gap. The strategy engages both public and private actors to mobilize the required investments (0.6 billion pesos and 1.7 billion pesos respectively). It takes a multi-pronged approach, which includes: implementation of the National Climate Change Policy; establishment of a carbon tax; revitalization of carbon markets; deepening of the green bond market; and promotion of climate risk disclosure from financial institutions and other private sector actors.

Mr. Mejia also acknowledged the support provided by a range of international actors including UN Environment, UNDP, and WRI through the Green Climate Fund Readiness Programme, the Andean Development Corporation, the Global Institute for Green Growth, the French Agency for Development and the Fund for Environmental Action and Children. In 2017, through the Green Climate Fund, US $ 38.5 million was granted for an adaptation project in La Mojana region, and another $5.2 million was granted by the GCF for project structuring and capacity building on climate change.

While a significant finance gap remains, Colombia is leading the way in its efforts to accurately measure current spending on climate adaptation and mitigation projects, an essential first step to identifying and addressing areas of need.

“Colombia is one of the first countries to have a system for tracking climate change investments, and the first one in the region that includes private investments. The information from the private sector was tracked through DANE [National Department of Statistics] surveys, direct surveys, as well as databases from Gremios (the guilds) and philanthropy,” he said.

"Public investments on climate change (adaptation or mitigation) remain concentrated in the environmental and risk-management sectors; the challenge is to increase adaptation and mitigation investments in productive sectors.”

The annual event was attended by representatives from the national government, including the Minister of Finance, the Minister of Environment and Sustainable Development, and the President of the National Trade Council, as well as representatives from UN Environment, UNDP, WRI, the private sector and multilateral banking sector.

For more information about the event, visit Colombia’s National Planning Department website event page.

 

 

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