Project

Non-Conventional Energies and Energy Efficiency Fund (FENOGE)

At a Glance

Start Date Q1 2017
Funding Source Core
Approved Budget 0
Status Complete

Project Rationale

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.

Planned Results

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.

Related

News • January 24, 2018

GGGI Colombia team participates in Bioeconomy Training in Chile

Ms. Monica Parra, Green Growth Officer of the GGGI Colombia team, participated in the Bioeconomy Regional Seminar for Latin America and the Caribbean held on January 24 and 25 in Santiago de Chile. This event was organized by the Economic Commission for Latin America and the Caribbean (ECLAC – United Nations, CEPAL in Spanish) in […]

News • June 7, 2019

Global Green Growth Institute Now Solidified in Colombian Law

On May 24, President Duque signed off Law 1954, through which the Congress of Colombia approved the “Establishment Agreement of the Global Green Growth Institute in Colombia,” signed in Rio de Janeiro the 20th of June, 2012. With this step forward, the Republic of Colombia is one step closer to achieving GGGI’s membership status and […]

News • March 6, 2019

GGGI partnering with TFA2020 to promote a dialogue on sustainable and deforestation-free private-investment

Villavicencio, March 6 – More than 200 attendants, including government officials, producers, buyers, investors and other key stakeholders gathered in Villavicencio (Meta) to take part in the “Dialogue on sustainable productive economic development without deforestation in the Orinoquia and Caqueta regions.” This event was co-organized by GGGI and the Tropical Forest Alliance (TFA2020), with the […]

News • July 19, 2019

Consultative Workshop for the new “Green Growth Potential Assessment” in Meta

July 10, Villavicencio, Colombia – GGGI brought together over 120 attendees hailing from the Meta Government, the public sector, and the private sector, for a consultative workshop around GGGI’s flagship “Green Growth Potential Assessment” (GGPA) Evaluation tool. This is a tool used to evaluate regional performance in terms of resource-use efficiency, natural capital preservation, resilience to […]