At a Glance
|Start Date||Q1 2017|
Colombia is a lower middle-income country with abundant natural resources and a growing population. In 2016, the Colombian government and the FARC rebel group reached a peace agreement that ended many decades of civil conflict, which the government expects will contribute to stronger economic prospects going forward. Still, many socioeconomic and political challenges remain, such as high levels of poverty, unemployment and underemployment, and rural energy access, among others.
Over the past several years, the Colombia government has passed a series of laws aimed at reducing GHG emissions, driving economic development, and providing increased energy access to rural areas. Law 1715/2014, known as the Renewable Energy Law, provides various incentives to encourage non-conventional renewable energy and energy efficiency investment. The Law focuses on RE integration into the electricity market and in non-interconnected zones (ZNI in Spanish). The Law establishes FENOGE as a financing vehicle to achieve these goals.
As established in Law 1753/2015, FENOGE will have an initial capitalization through a fractional tax per kWh on the wholesale energy market, called the Fondo de Apoyo Financiero para la Energización de las Zonas No Interconectadas (FAZNI) (English translation: Financial Support Fund for the Energization of Non-Interconnected Zones).
Building on 2015-2016 work
GGGI’s Country Planning Framework for Colombia identifies mainstreaming of green growth into national development policies and mobilizing sectoral green growth investments. In partnership with the National Planning Department (NPD), GGGI began the process of mainstreaming green growth into Colombia’s National Development Plan by supporting the inclusion of sector-specific green growth targets in the current National Development Plan 2014–2018, as well as following up on policies and investments to meet them. In 2016, GGGI supported NPD in the diagnosis and green growth potential assessment phase of a Green Growth Task Force, which brought together experts to assess priority issues and provide recommendations to be adopted in the Long-Term Green Growth policy during its formulation in 2017–2018.
The establishment of an National Financing Vehicle in Colombia for renewable energy and energy efficiency will lead to a significant reduction in GHG emissions, greater energy access in rural areas, and better quality of life for Colombia’s citizens. GGGI supported this by contributing to the following outputs:
- Finalize the decree that creates FENOGE as a legal entity;
- Finalize the FENOGE Operations Manual;
- Support the selection of the fiduciary agency that will administer FENOGE; and
- Prepare the FENOGE Business Plan.
News • April 10, 2018
April 10 – Bogota, Colombia – The Second Committee of International Affairs of the Senate of the Republic of Colombia approved today the first debate – out of four required to pass the bill – of the Bill 178 and 179 of 2017 that makes reference to the Legal Status and Privileges of the Global […]
News • April 10, 2018
Norway commits additional US $250 million (2020 to 2025) for Colombia to fight against deforestation
April 10 – Bogota, Colombia – Norway committed additional US $250 million (2020 to 2025) for Colombia today to fight against deforestation by extending the Joint Declaration of Intent (JDI). H.E. Prime Minister Erna Solberg and H.E. President of Colombia Juan Manuel Santos announced the new timeline for their cooperation to fight against deforestation. Norway will […]
News • November 30, 2017
International Finance Magazine writes about the Amazon Vision Fund in Colombia The Tropical Forest Alliance 2020, an initiative hosted by the World Economic Forum, is joining forces with the Government of Colombia to launch a multistakeholder platform of businesses, civil society organizations and donor agencies to protect over 60 million hectares of Amazon rainforest within its […]