Washington, D.C., December 20, 2022 – The World Bank Board of Directors approved a US$1 billion loan yesterday to accelerate Colombia’s climate action by advancing the low-carbon energy transition, promoting sustainable land use, and strengthening climate resilience and adaptation.
The loan will finance a reform program to foster Colombia's low-carbon development by accelerating the low-carbon transformation of the energy and transportation sectors. The program includes increasing non-conventional renewable energy production capacity and developing a green hydrogen industry.
"Today we achieved a major milestone in Colombia's relationship with multilateral banks with the approval of the largest budget support operation in the country's history. This US$ 1 billion loan from the World Bank is a clear sign of confidence in Colombian institutions and a recognition of the nation's efforts to integrate the climate change agenda with an ambitious social and economic agenda,” said Colombia’s Finance and Public Credit Minister José Antonio Ocampo. "It supports the commitment to energy transition, improved land use, and protection of our natural heritage."
Additionally, to increase climate change resilience, the program will help build capacity to manage disaster risks, and will expand agricultural insurance to mitigate the impact of weather shocks in rural areas.
"This is an extremely important operation for Colombia as it will enable the national government to secure resources to achieve all the changes we are developing during this administration," said Jorge Iván González, National Planning Department director. "It is an acknowledgement of our aims in protecting biodiversity, the strategies we propose for climate change resilience and for our major commitments to achieve a sustainable energy transition, which will make this country a global power of life.”
The program will also promote sustainable land use, especially in Colombia’s high-altitude moorlands (páramos), increase the adoption of sustainable livestock systems, and accelerate the implementation of the multipurpose cadaster, a crucial measure for containing deforestation.
“This operation supports Colombia's strong commitment to addressing climate change through policy reforms aimed at sustainable, resilient, and low-carbon development,” said Mark Thomas, World Bank director for Colombia, Mexico and Venezuela. “This includes promoting and strengthening capacities in the energy, transport and land sectors, as well as disaster risk management and climate adaptation, which will mainly benefit the most vulnerable communities.”
The Ministry of Finance and Public Credit and the National Planning Department will be responsible for the technical coordination and implementation of this loan.
Learn more about the work of the World Bank in Latin America and the Caribbean.
