COLOMBIA SUSTAINABLE FINANCE STATE OF THE MARKET 2022

As of the end of 2022, Colombia's GSS+ debt market totaled USD 2.4 billion, with green bonds being the most prominent segment at USD 1.3 billion. The market is characterized by a strong sovereign presence and a growing regulatory framework, including the pioneering Colombian Green Taxonomy. While the market is primarily domestic, there is significant potential for growth in hard-to-abate sectors through sustainability-linked bonds and in nature-based solutions for climate adaptation. The report recommends scaling sovereign issuance, establishing green securitization facilities, and expanding the taxonomy to include biodiversity and circular economy objectives.

• By the end of 2022, Colombia's GSS+ debt market reached a cumulative total of USD 2.4 billion, ranking it as the seventh largest sustainable debt market in Latin America and the Caribbean.
• Green bonds are the dominant instrument in the Colombian market, accounting for 53.7% of the GSS+ volume with USD 1.3 billion issued across 16 deals from nine issuers.
• The Colombian Government is the primary issuer of green bonds, representing 43% of the market, followed by financial corporates at 35.2% and non-financial corporates at 12.9%.
• In September 2021, Colombia became the first country in the LAC region to issue sovereign green bonds denominated in its own currency (COP), using a twin bond structure to measure the 'greenium'.
• Colombia launched the first official green taxonomy in Latin America in April 2022, designed to prevent greenwashing by providing science-based guidelines for green economic activities across priority sectors such as energy, transport, and buildings.
• The social bond market in Colombia reached a cumulative issuance of USD 620.4 million, with 73% of the amount issued maturing within five years.
• Bancolombia issued the first sustainability-linked bond (SLB) by a bank in the LAC region in October 2022, totaling COP 640 billion (USD 129.4 million), with targets linked to financial inclusion and financed emissions intensity.
• There is a significant funding gap for climate adaptation and resilience (A&R), with 30 targets estimated to cost between USD 1.6 billion and USD 2.9 billion, currently relying primarily on insufficient public investments.
• The report identifies a high potential for Nature-based Solutions (NbS) in Colombia, citing the Green Corridor in Medellín, which reduced temperatures by more than 2°C in specific blocks.
• To scale the market, the report recommends establishing green securitization/aggregation facilities to enable private investment in smaller green projects, particularly for SMEs.

APA

Sánchez, A. F., Peláez, A., Lerner, A., Isaza, D., Vásquez, I., Ambrossano, J., Fadul, Y., & Echeverry, S. (2023). COLOMBIA SUSTAINABLE FINANCE STATE OF THE MARKET 2022. Climate Bonds Initiative. https://www.climatebonds.net/files/documents/publications/colombia_sustainable_state_of_the_market_2022_english.pdf

Chicago

Sánchez, Andrés Felipe, Adelaida Peláez, Alicia Lerner, Diana Isaza, Iraís Vásquez, Julia Ambrossano, Yolanda Fadul, and Sebastián Echeverry. COLOMBIA SUSTAINABLE FINANCE STATE OF THE MARKET 2022. Climate Bonds Initiative, 2023. https://www.climatebonds.net/files/documents/publications/colombia_sustainable_state_of_the_market_2022_english.pdf.

Wikipedia

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BibTeX

@techreport{snchez2023colombia, author = {Sánchez, Andrés Felipe and Peláez, Adelaida and Lerner, Alicia and Isaza, Diana and Vásquez, Iraís and Ambrossano, Julia and Fadul, Yolanda and Echeverry, Sebastián}, title = {{COLOMBIA SUSTAINABLE FINANCE STATE OF THE MARKET 2022}}, institution = {Climate Bonds Initiative}, year = {2023}, month = may, url = {https://www.climatebonds.net/files/documents/publications/colombia_sustainable_state_of_the_market_2022_english.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }