coal-transition-colombia-sei2025-7663876eaa3bcc97.pdf

This policy brief by the Stockholm Environment Institute and the Natural Resource Governance Institute examines the economic, institutional, environmental, and sociocultural barriers to a just energy transition from thermal coal in Colombia, specifically focusing on the Cesar and La Guajira departments.

• Coal is a critical source of national and regional revenue in Colombia, creating significant resistance to transition. Nationally, coal exports contribute 2.4% of total fiscal revenues, and coal royalties account for over 80% of all mining sector royalties. Regionally, coal represented nearly 43% of departmental income in Cesar and 61% in La Guajira for the 2019-2020 period. Some municipalities, such as Becerril, derived up to 79% of their 2021 budgets from these royalties.
• The coal sector is a vital employer in specific municipalities, offering higher wages and benefits than other local sectors. In 2020, three mining companies in Cesar and La Guajira directly employed 13,559 people, which was approximately 38% of all coal mining employment in Colombia.
• Local and regional governments face severe institutional and financial limitations that hinder a just transition. These include insufficient capacities for revenue collection, budget administration, and the implementation of productive projects. Furthermore, Colombia is the only country among the three studied (alongside Indonesia and South Africa) that lacks a Just Energy Transition Partnership (JETP) for bilateral cooperation.
• Environmental regulations for mine closures are insufficient, often only covering three-year periods, which leaves long-term environmental responsibilities unaddressed. While a law was approved by the Colombian Congress in 2023 to define environmental responsibilities and management mechanisms, its practical effectiveness in ensuring accountability for past and present degradation remains to be seen.
• Sociocultural barriers, including high levels of violence, human rights violations, and a fragile civic space, complicate transition efforts. The suspension of Prodeco operations in Cesar led to increased conflicts and security issues, particularly for social leaders and union workers. Additionally, marginalized groups, including Indigenous and Afro-descendant communities, are frequently excluded from post-coal planning despite their right to prior consultation under ILO Convention 169.
• While Cesar and La Guajira have high potential for wind and solar energy and tourism, these sectors are unlikely to fully offset the economic losses from the decline of the coal industry. The document recommends establishing a permanent subregional fund for productive and labor reconversion, strengthening local authority competencies, and adopting a regional planning approach through entities like Administrative and Planning Regions (RAP).

APA

Stockholm Environment Institute (n.d.). coal-transition-colombia-sei2025-7663876eaa3bcc97.pdf. https://www.sei.org/wp-content/uploads/2025/04/coal-transition-colombia-sei2025.pdf

Chicago

Stockholm Environment Institute. coal-transition-colombia-sei2025-7663876eaa3bcc97.pdf. n.d. https://www.sei.org/wp-content/uploads/2025/04/coal-transition-colombia-sei2025.pdf.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=coal-transition-colombia-sei2025-7663876eaa3bcc97.pdf |url=https://www.sei.org/wp-content/uploads/2025/04/coal-transition-colombia-sei2025.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitutendcoaltransitioncolombiasei20257663876eaa3bcc97pdf, author = {{Stockholm Environment Institute}}, title = {{coal-transition-colombia-sei2025-7663876eaa3bcc97.pdf}}, institution = {Stockholm Environment Institute}, url = {https://www.sei.org/wp-content/uploads/2025/04/coal-transition-colombia-sei2025.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }