Globally, green bonds have positioned themselves as an effective mechanism to finance climate projects. Green bond issuances reached $171 billion globally in 2018 and are expected to reach close to $250 million in 2019 (CBI, n.d.). Green bonds were identified in the Colombian Climate Finance Strategy as one of the financial instruments that can leverage public and private investments, necessary to boost the mitigation and adaptation commitments that the country has acquired. As of 2018, five green bond issuances have been made in the country for a total value of $459 million dollars (CBI, 2019). To boost the development of this financial market, in collaboration with CDKN, the financial potential of the market was analyzed and a roadmap was developed (link).

As a continuation of these efforts to promote the green bond market in the country, the project “Promoting green finance and establishing pillars for scalable, low-carbon investment in Colombia” seeks to advance the recommendations set out in the Roadmap for the green bond market in the country. This project is being led by Climate Bonds Initiative (CBI), Metrix Finance and E3-Ecology, Economics and Ethics, within the framework of the UK Pact Program funded by the UK Department for Business, Energy and Industrial Strategy (BEIS). The aim of the project is to improve the knowledge base of green bonds among strategic market players, align the local market with international standards and best practices in climate finance instruments, promote the expansion of the portfolio of green assets and projects in key sectors, and exchange experiences with international experts.

Climate Bonds Initiative (2019). Latin America and the Caribbean: State of the green finance market 2019. Available at https://www.climatebonds.net/resources/reports/latin-america-caribbean-green-finance-state-market-2019