COLOMBIA

1. Recent trends

Poverty in Colombia increased from 30.9% in 2016 to 39.8% in 2020, above the Latin America and the Caribbean (LAC) average of 26.3%, partly owing to the impact of the COVID 19 pandemic. Extreme poverty increased in that period from 12.0% to 19.2% and remains above the LAC average (8.7%). The population living in completely informal households decreased from 62.6% in 2010 to 52.2% in 2018, compared to the LAC average of 36.3% in 2018. Regarding environmental indicators, in 2019 greenhouse gas (GHG) emissions per capita were 3.7 tonnes of carbon dioxide equivalent (t CO2e), lower than the averages for LAC (6.3) and for countries belonging to the Organisation for Economic Co operation and Development (OECD) (9.1). That year, the share of the population exposed to air pollution levels that pose risks to human health (PM2.5 at more than 10 µg/ m3) was 99.3%, higher than 95.4% for LAC and 61.0% for the OECD. The marine protected area of Colombia accounted for 17.2% of its territorial waters in 2021, compared to 7.3% for LAC and 18.6% for the OECD. On the fiscal side, environmentally related tax revenue was 0.6% of gross domestic product (GDP) in 2020, below LAC (1.0%) and the OECD (2.1%). Total tax revenues as a percentage of GDP in 2020 (18.7%) was below averages for LAC (21.9%) and the OECD (33.5%).

2. Long term development policies for a green transition

Colombia transformed the plan for the implementation and monitoring of its nationally determined contributions (NDCs) into Law No. 2169 of Climate Action (2021). The long term Climate Strategy of Colombia E2050 aims for the net zero scenario by 2050. The Green Growth Policy (CONPES 3934 of 2018) is an inter sectoral plan to boost green economic productivity and sustainable use of natural resources.

Within Colombia’s mitigation measures, the Comprehensive Strategy for Deforestation Control and Forest Management commits to reduce deforestation to zero in 2030. Vida Manglar is a market driven mangrove conservation project in Cispata, that entered the carbon market in 2021. Law No. 1964 of 2019 promotes the use of electric vehicles, by means of tax exemptions and targeted subsidies. Among upcoming policies, the tax reform presented in Congress (in 2022) proposes a tax for single use plastics, as well as other environmental tariffs related to the energy matrix. Regarding adaptation policies, the National Plan of Adaptation to Climate Change aims to increase Colombia’s capacity to respond to the impacts of climate change. The Strategy for the Strengthening of the Business Sector in Climate Risk Management to Maintain Competitiveness helps businesses to adopt a climate risk management strategy. Colombia has 25 Comprehensive Climate Change Sectorial Management Plans, which allow ministries and territorial entities to identify, orient and evaluate mitigation and adaptation measures.

Regarding international partnerships within the region, Colombia is member of the Pacific Alliance, which runs various environmental and climate change related projects. Colombia is part of the Amazon Cooperation Treaty Organization and is currently participating in the integrated water management programme in the Amazon Basin with Brazil and Peru. It is also part of the TerrAmaz programme to monitor deforestation and promote sustainable agricultural practices, with support from the French Development Agency (AFD). Colombia ratified the Escazú Regional Agreement on access to information, public participation and justice in environmental matters. Beyond LAC, Colombia created the Global Blue Carbon Coalition in 2022 to accelerate investments in coastal carbon sinks, in partnership with Australia, Costa Rica, France, and Conservation International.

Regarding green finance, in 2021, Colombia was the first country in LAC to issue green bonds ( TES verdes 2031) in the domestic market and to publish its Green Taxonomy in 2022. The National Strategy for Climate Finance includes climate change criteria in economic and financial planning and evaluation and helped create a platform for information on climate finance. The Corridor of Climate Financing is an intermediation system to connect climate actions with resources and support. It is being used to create the Climate Finance Accelerator with the United Kingdom through the UK PACT, and to support the National Development Banks in the design of green innovative instruments with the German Agency for Economic Cooperation (GIZ). Colombia is designing the National Program of Tradable Emissions Quotas, which will allow the sale and auction of emission rights and should be implemented by 2030.

Note: See the Reader’s Guide for definitions and sources.

Key indicators – Colombia

12 https://stat.link/i0gty9