Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
COLOMBIA
Climate Action and Energy Transition
Figure 9: Colombia ND-GAIN Index
The OPEC Fund is co-financing the Support to Climate Action and Energy Transition Program in Colombia with a policy-based loan of US$150 million. The main objective of the loan is to contribute to sustainable, resilient growth with the aim of supporting Colombia’s economic growth. The spe- cific objectives are to: (i) strengthen the Colombian govern- ment’s capacity to plan, manage and finance climate action; (ii) foster economic opportunities based on the sustainable use of natural resources and the development of circular economy models; and (iii) promote the energy transition.
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Source: https://gain.nd.edu/our-work/country-index
Situation Analysis of Climate Impacts
Colombia ranks among the most unequal countries glob- ally, with low social mobility and significant spatial dispar- ities. 35 Although the poverty rate, which spiked in 2020 due to the COVID-19 pandemic, has decreased since 2020, 39 percent of the population – more than in 2019 – remain poor, with poverty increasing in rural areas. High poverty and inequality hinder the full utilization of the population’s human potential, limiting economic expansion. 36 At the same time, Colombia is grappling with significant climate challenges. The country is highly exposed to natu- ral hazards. Due to a combination of political, geographic and social factors, Colombia is recognized as highly vul- nerable to climate change impacts, ranking 48th out of 181 countries on the 2023 ND-GAIN Index. 37 Figure 9 pre- sents a time-series plot of the ND-GAIN Index, illustrating Colombia’s progress over time.
FUNDING DETAILS:
• Total program cost: US$1.4 billion • Type of financial instrument: policy-based loan • OPEC Fund contribution: US$150 million • Co-financiers: laDB (US$300 million), CAF (US$300 million), KfW (200 million), AFD (¤200 million), CABEI (US$250 million) • OPEC Fund climate finance as percentage: 73 percent, of which 29 percent adaptation finance and 44 percent mitigation finance. • In August 2022, the government officially requested the OPEC Fund to join the Climate Action Policy and Energy Transition Program through the approval of a policy-based loan of US$150 million.
35 World Bank, 2024: URL:https://www.worldbank.org/en/country/colombia/overview#2 36 World Bank Poverty & Equity Brief: URL: https://databankfiles.worldbank. org/public/ddpext_download/poverty/987B9C90-CB9F-4D93-AE8C- 750588BF00QA/current/Global_POVEQ_COL.pdf 37 University of Notre Dame (2024). Notre Dame Global Adaptation Initiative. URL: https://gain.nd.edu/our-work/country-index
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