Advance the mobilization of climate finance in Colombia’s AFOLU sector through Direct Access Entity support and implementation of the country’s green taxonomy for the agriculture and forestry sectors

The document outlines a readiness project to bridge the financial gap in Colombia's AFOLU sector, which accounted for 58% of national GHG emissions in 2020. The project focuses on three main barriers: Finagro's limited capacity to operationalize its Environmental and Social Management System (ESMS) and Gender policies, the lack of capacity among first-tier financial intermediaries to implement GCF investments, and the low adoption of the national green taxonomy. Key activities include developing operation manuals for Finagro, training Bancamia staff on risk analysis and green investment, and designing two new financial products aligned with the green taxonomy. The project is implemented by the Global Green Growth Institute (GGGI) over an 18-month period.

• The AFOLU sector is the primary source of greenhouse gas emissions in Colombia, representing approximately 58% of total national emissions in 2020.
• Colombia's updated Nationally Determined Contribution (NDC) targets a 51% reduction of 2020 emissions by 2030, requiring annual investments between 0.7% and 1.2% of GDP, which is significantly higher than the current average of 0.16%.
• Finagro, the largest provider of finance to the AFOLU sector, faces three critical barriers to GCF accreditation: limited capacity to operationalize its ESMS and Gender policies, limited capacity of its financial intermediaries to implement climate investments, and a lack of credit instruments aligned with green investment criteria.
• There is a significant gap in environmental and social risk management among financial intermediaries; of the 55 intermediaries working with Finagro, only 10 have a functioning ESMS or are developing one.
• The Colombian green taxonomy, launched in April 2022 to identify investments with environmental objectives, has seen low adoption and implementation rates within the financial sector.
• Rural women in Colombia face systemic financial inequalities, with only 19.1% of women-owned farms possessing agricultural machinery compared to 31.4% of men-owned farms.
• The project will specifically support Bancamia, a leading microfinance institution, to align its ESMS and Gender policy development plan with GCF requirements so it can act as an executing entity.
• The proposed intervention includes the design of two new financial products for Finagro that specifically meet the criteria of the national green taxonomy.

APA

Green Climate Fund (2024). Advance the mobilization of climate finance in Colombia’s AFOLU sector through Direct Access Entity support and implementation of the country’s green taxonomy for the agriculture and forestry sectors. https://www.greenclimate.fund/sites/default/files/document/20240111-col012-approved-readnss-grnt.pdf

Chicago

Green Climate Fund. Advance the mobilization of climate finance in Colombia’s AFOLU sector through Direct Access Entity support and implementation of the country’s green taxonomy for the agriculture and forestry sectors. 2024. https://www.greenclimate.fund/sites/default/files/document/20240111-col012-approved-readnss-grnt.pdf.

Wikipedia

{{cite report |author=Green Climate Fund |title=Advance the mobilization of climate finance in Colombia’s AFOLU sector through Direct Access Entity support and implementation of the country’s green taxonomy for the agriculture and forestry sectors |date=11 January 2024 |url=https://www.greenclimate.fund/sites/default/files/document/20240111-col012-approved-readnss-grnt.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greenclimatefund2024advance, author = {{Green Climate Fund}}, title = {{Advance the mobilization of climate finance in Colombia’s AFOLU sector through Direct Access Entity support and implementation of the country’s green taxonomy for the agriculture and forestry sectors}}, institution = {Green Climate Fund}, year = {2024}, month = jan, url = {https://www.greenclimate.fund/sites/default/files/document/20240111-col012-approved-readnss-grnt.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }