Green Bond Market in Colombia ROAD MAP

The report identifies the current state of Colombia's bond market, which is underdeveloped and dominated by the National Government. It outlines a two-phase road map: Phase I focuses on laying foundations through capacity building, defining green investments, and establishing governance; Phase II focuses on market expansion by diversifying issuers, reducing costs, and mitigating currency risks. The document highlights significant potential in green portfolios across the real sector, cities, and development banks, while noting barriers such as a lack of domestic verifier expertise and a concentrated demand for high-credit-rated securities.

• Colombia's bond market is underdeveloped compared to other Latin American economies, with the National Government acting as the primary issuer, accounting for 82.9% of the country's debt market.
• There is a significant funding gap for climate mitigation; National Determined Contributions (NDCs) are estimated to require approximately 57.8 billion pesos by 2030, averaging 3.18 billion pesos annually.
• The Colombian market suffers from a concentrated demand for high-credit-rated securities, specifically those rated AA+ or above, which restricts access to capital for lower-rated companies and limits market liquidity.
• Substantial potential for green bond issuance exists in Colombia, with identified portfolios in selected cities and provinces totaling $24,716 million USD, and portfolios in 31 real-sector companies totaling $19,080 million USD.
• A critical barrier to market growth is the lack of domestic expertise in green bond standards; most local verifier organizations are not acquainted with the methodologies required to label bonds as green, which increases transaction costs.
• The road map proposes a two-phase implementation strategy: Phase I focuses on setting foundations (capacity building, defining green investments, and governance), and Phase II focuses on sustained expansion (diversifying issuers and reducing issuance costs).
• To attract foreign investors, the report recommends mitigating currency-related risks through the development of a long-term currency swap market and promoting existing tax incentives, such as the reduction of source withholding from 33% to 15% for investments lasting over one year.
• The report emphasizes the need for a common national definition of 'green investment' that harmonizes domestic priorities (NDCs and green growth policies) with international standards like the Climate Bonds Standard (CBS).

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} }