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 • January 24, 2018
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 […]
News • October 30, 2018
Medellín, October 30 – The Subnational Program of the GGGI Colombia team, with the support of the Norwegian Embassy and the Government of Antioquia, carried out the second of four capacity building workshops in green growth for public and private stakeholders in this department. This second meeting focused on sharing the national and regional successful cases, […]
News • February 21, 2018
Bogotá – February 21, 2018 – In partnership with the Norwegian Embassy in Colombia, the Ministry of Environment and Sustainable Development (MADS) of Colombia and the Tropical Forest Alliance 2020 (TFA2020), GGGI co-hosted the first plenary meeting of the TFA2020 Alliance’s Colombian chapter with over 30 stakeholder institutions from the public and private sectors. This […]
News • June 28, 2018
Oslo, Norway, June 28 – GGGI took part in the Oslo Tropical Forest Forum (OTTF) 2018 hosted by the Norwegian Agency for Development Cooperation (NORAD) to present the importance of jurisdictional platforms to scale up REDD+ across peatland landscapes and discuss ways to foster protection of tropical forests. The GGGI Indonesia team co-organized a public event […]