Project

REDD+ Financial Mechanism Colombia

At a Glance

Start Date Q4 2015
Funding Source Core
Approved Budget 0
Status Active
Thematic Area
  • Sustainable Landscapes

Project Rationale

Colombia is a lower middle-income country rich in natural resources, particularly those in the forest sector. Forests cover half of Colombia and are critical to the livelihoods of many Colombians and the sustainability of the country in general. However, deforestation rates in Colombia’s Amazon Basin alone reached approximately 76,721 hectares/year between 2000 and 2012, which corresponds to close to 40 million tons of CO2 emissions a year.
GGGI’s engagement with the Colombian government started in early 2013 as part of an Amazon Basin effort to promote large-scale climate change financing and to adopt green growth planning.
During COP 21 in December 2015, the Colombian government signed a Joint Declaration (i.e., a Memorandum of Understanding (MoU)) with several donor countries for cooperation on reducing GHG emissions from deforestation and forest degradation (REDD+). In addition, the agreement also encouraged sustainable development in Colombia, to be financed under a payment for performance scheme.
The MoU payment scheme is financed under two Modalities:
o Modality 1: Policy Design and Implementation
o Modality 2: Verified Emission Reductions
As part of this agreement, the Colombian government will receive USD 186 million in financing from the Norwegian government through an interim financial mechanism: the FCS. The funding will be split, with Modality 1 receiving up to USD 40 million and Modality 2 receiving up to USD 146 million for the period up to and including 2020.
Managed by the Inter-American Development Bank (IADB), the FCS will finance projects and technical assistance while following international standards on environmental and social safeguards, as well as reporting and auditing.

Building on 2015-2016 Work

GGGI’s Country Planning Framework for Colombia identifies mainstreaming of green growth into national development policies, mobilizing sectoral green growth investments, and sustainable forestry as the key areas of focus for GGGI in the medium term. In line with this, over the WPB 2015-16 period, GGGI supported the establishment of a payment-for performance scheme to reduce deforestation in the Amazon.
In 2016, GGGI provided assistance to Colombia on delivering on the Joint Declaration of Intent (DoI) with Norway to reduce GHG emissions through REDD+ by conducting design work to structure a Financial Mechanism and strengthening Colombian institutions to receive funding as part of the Financial Mechanism under the DoI. In 2017-18, GGGI continued to support the achievement of DoI milestones through policy and implementation support and the development of investment proposals submitted to the financing mechanism.

Planned Results

• Reduction in greenhouse gas (GHG) emissions
• Adaption to climate change impacts
• Improved quality of life for Colombia’s citizens
• Increased efficiency in transferring international climate financing to Colombia and improved capacity to manage funds.

Related

Project
Green Growth Program (Phase II)
Start Date Q1 2016
Funding Source Partner
Approved Budget NOK 178 000 000
Status Active
Thematic Area
  • Green Cities
  • Sustainable Landscapes
  • Sustainable Energy
  • Cross Cutting
View
News • December 1, 2017

Knowledge and experience sharing on forest coverage monitoring in Colombia

On November 28 – December 01, the second Annual Seminar on Forest Coverage Monitoring in Colombia was held in Bogotá, Colombia. This event was supported and funded by the Global Green Growth Institute (GGGI), UNREDD and the Amazon Vision program, among others. The event had the participation of national and international experts, besides having a […]

News • October 23, 2018

Second workshop on Green Growth in Meta: A new way for a Forest Culture

Villavicencio, October 23 – The GGGI Colombia team under the framework of the sub-national strategy in green growth, and with the support of the Norwegian Embassy and Department of Meta’s Governor Office, carried out the second of four capacity building workshops on green growth for public and private stakeholders. Around 90 participants attended the workshop, […]

News • January 24, 2018

Catalyzing private investment in Waste to Energy Projects in Colombia

On January 24, the GGGI Colombia team together with experts from the Green Investment Services Unit presented the final results from the study “Innovative business models and financing mechanisms to catalyze private investment for waste to energy projects in Colombia”. The presentation was delivered at the Director of the Environmental and Social Affairs Unit of […]