Green Bond Market in Colombia ROAD MAP

The 'Green Bond Market in Colombia ROAD MAP' is a report designed to assist the Colombian Government and the Finance Management Committee of SISCLIMA in developing a successful green bond market. It identifies the potential for green growth funding, analyzes existing barriers in both the green and ordinary bond markets, and proposes a two-phase action plan to establish foundations and expand the market.

• Colombia's bond market is underdeveloped compared to other Latin American economies, representing only 6% of GDP, with the National Government acting as the dominant issuer, accounting for 82.9% of the debt market.
• Significant investment is required for climate mitigation by 2030, estimated at approximately 57.8 billion pesos, which averages to nearly 3.18 billion pesos per year.
• A critical barrier to market expansion is the concentrated demand for high-credit-rated securities, specifically those rated AA+ or higher, which limits funding access for companies with lower ratings and reduces market liquidity.
• The report identifies substantial potential for green portfolios across various entities: reviewed cities and provinces hold a portfolio of $24,716 million USD, 31 companies hold $19,080 million USD, and FINDETER's reviewed portfolio is $1,399 million USD.
• Phase I of the Road Map focuses on laying foundations through capacity-building, defining green investments for Colombia, identifying green portfolios, and establishing a governance mechanism via a Green Bonds Subcommittee of SISCLIMA.
• Phase II aims for market expansion by creating diverse examples of issuers (including development banks and cities), reducing issuance costs, diversifying demand for securities rated below AA+, and mitigating currency risks for foreign investors.
• Domestic verifier organizations in Colombia generally lack the specific knowledge required to label bonds as green, which currently increases transaction costs by necessitating international services.
• The report notes that green bonds are primarily used for refinancing existing assets rather than funding new projects, necessitating complementary financial tools to support initial green investments.
• Tax incentives for environmental investments and non-conventional renewable energies exist in Colombia, but their application is hindered by cumbersome procedures and a lack of clear definitions regarding eligible typologies.

APA

Climate and Development Knowledge Network (n.d.). Green Bond Market in Colombia ROAD MAP. https://cdkn.org/sites/default/files/files/Roadmap-actions-for-setting-a-green-bond-market-in-Colombia.pdf

Chicago

Climate and Development Knowledge Network. Green Bond Market in Colombia ROAD MAP. n.d. https://cdkn.org/sites/default/files/files/Roadmap-actions-for-setting-a-green-bond-market-in-Colombia.pdf.

Wikipedia

{{cite report |author=Climate and Development Knowledge Network |title=Green Bond Market in Colombia ROAD MAP |url=https://cdkn.org/sites/default/files/files/Roadmap-actions-for-setting-a-green-bond-market-in-Colombia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climateanddevelopmentknowledgenetworkndgreen, author = {{Climate and Development Knowledge Network}}, title = {{Green Bond Market in Colombia ROAD MAP}}, institution = {Climate and Development Knowledge Network}, url = {https://cdkn.org/sites/default/files/files/Roadmap-actions-for-setting-a-green-bond-market-in-Colombia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }