Main National Investment Priorities and Gaps for a Just Transition in Colombia

The report identifies a significant financing gap for Colombia's climate goals and argues that a just transition (JT) requires dedicated investment in socio-economic mitigation, such as re-skilling and regional diversification. While 67% of climate finance currently comes from public sources, the report notes that the 2023 national budget is not yet aligned with JT priorities. It suggests leveraging private green portfolios, international aid, sovereign green bonds, and carbon tax revenues to bridge this gap, while recommending the creation of a social taxonomy to ensure investments are socially responsible.

• Colombia faces a substantial financing gap for its climate objectives; prior to considering just transition costs, the country had a gap of nearly 80% to meet the mitigation and adaptation goals of its updated NDC.
• Between 2016 and 2021, public resources provided 67% of Colombia's climate finance, followed by international sources at 25% and the private sector at 8%. Public funding is volatile, having decreased by 37% between 2019 and 2021.
• The 2023 national budget of USD 84.2 billion lacks alignment with just transition planning, with key sectors like agriculture, planning, and environment receiving less than 1% of the budget.
• Private sector green portfolios are growing, with Colombian banks' green products reaching US $2.9 billion in 2020, a 20% increase over 2019. To ensure these are socially responsible, the Financial Superintendence of Colombia is considering a social taxonomy to complement the existing Green Taxonomy published in April 2022.
• International climate finance for Colombia totaled USD $953 million between 2016 and 2021, with the Global Environmental Facility (GEF), Norway, Germany, and the UK as the primary donors.
• Innovative financing tools such as special purpose bonds and carbon taxes can provide stable funding. Colombia's carbon tax collected US $433.2 million between 2017 and 2021, contributing to a reduction of over 104 million tonnes of CO2.
• A just transition requires specific investments across several dimensions, including re-skilling programs and education reform for the labor market, unemployment insurance and early retirement for social protection, and economic diversification for regional development.

APA

García, H. (2023). Main National Investment Priorities and Gaps for a Just Transition in Colombia. Climate Strategies. https://climatestrategies.org/wp-content/uploads/2023/06/The-Main-National-Investment-Priorities-and-Gaps-for-a-Just-Transition-in-Colombia.pdf

Chicago

García, Helena. Main National Investment Priorities and Gaps for a Just Transition in Colombia. Climate Strategies, 2023. https://climatestrategies.org/wp-content/uploads/2023/06/The-Main-National-Investment-Priorities-and-Gaps-for-a-Just-Transition-in-Colombia.pdf.

Wikipedia

{{cite report |last1=García |first1=Helena |title=Main National Investment Priorities and Gaps for a Just Transition in Colombia |publisher=Climate Strategies |date=2023 |url=https://climatestrategies.org/wp-content/uploads/2023/06/The-Main-National-Investment-Priorities-and-Gaps-for-a-Just-Transition-in-Colombia.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{garca2023main, author = {García, Helena}, title = {{Main National Investment Priorities and Gaps for a Just Transition in Colombia}}, institution = {Climate Strategies}, year = {2023}, url = {https://climatestrategies.org/wp-content/uploads/2023/06/The-Main-National-Investment-Priorities-and-Gaps-for-a-Just-Transition-in-Colombia.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }