CABEI approves US$250 million to Colombia to promote green growth and contribute to carbon neutrality
This operation will improve environmental sustainability, climate resilience and access to clean energy for the benefit of productive sectors and thousands of households nationwide.
Bogota, June 07, 2022.- To support its extra-regional member country Colombia in its efforts to promote low-emission development, the Central American Bank for Economic Integration (CABEI) approved US$250 million in financing to implement a "Development Policy Operation in Support of Climate Action and Energy Transition."
These fast-disbursing resources, from CABEI's Development Policy Operations Program, will support the planning, management, monitoring and financing of climate action in Colombia through the development of fundamental policies that will enable the country to achieve carbon neutrality by 2050.
"This approval is expected to achieve long-term results, such as the supply of electricity to Colombian households from mostly sustainable sources, through a transition to a matrix that is powered by renewable and clean sources, as well as the promotion of electromobility in the country," said CABEI's Executive President, Dr. Dante Mossi.
The resulting effects of this operation will support the improvement of environmental sustainability in areas of high importance for biodiversity, by creating the regulation of the national goals committed by Colombia in the framework of the Paris Agreement. It will also promote innovative economic instruments to cover climate finance gaps.
This Development Policy Operation is linked to the Central American region within Pillar A in the strengthening of integrated and regional management of biodiversity and its ecosystem services, which are part of the Eastern Tropical Pacific Marine Corridor initiative, which promotes the protection of biodiversity and marine-coastal resources.
In turn, within Pillar B, the strengthening of the resilience of the electricity system by promoting initiatives that allow a diversification of its energy matrix through the reliability of the National Interconnected System in emergency situations and the regulatory harmonization agreements prior to the execution of the Colombia-Panama electricity interconnection.
This initiative is aligned with the CABEI 2020-2024 Institutional Strategy: CABEI, Pillar of Sustainable Development in the Region, which seeks to promote balanced economic growth, poverty reduction, sustainable development and the fight against climate change through policy actions that strengthen the maintenance of macroeconomic stability in its member countries.