This brief looks at options for funding to advance a just transition in Colombia.
A just transition is key to ensuring that Colombia’s shift to a low-carbon and resilient society maximises the benefits of climate action while minimising the negative impacts. To implement a just transition, Colombia will need invest in identifying the impacts of climate policies, co-designing strategies to ease these impacts, implementing these structural changes and evaluating their success. These actions are costly, as they involve both broad transitions (e.g., to clean energy and away from fossil fuels) and investment in public participation to enhance equitability.
- Identify and quantify the possible socioeconomic impacts of climate actions included in the country’s NDCs (Nationally Determined Contributions).
- Align development agendas with the country’s climate and equity goals to maximise investment synergies. Achieving coordination requires establishing a high-level working group to direct and leverage existing sources of financing.
- Engage new sources of funding, such as sovereign green bonds or the revenue from the country’s carbon tax, to help finance the just transition and provide stability to investments, since they can be earmarked for specific purposes.
- Provide clear policy signals, as well as transparent metrics on social, environmental, and economic returns from different just transition initiatives to secure funding from international sources.
The research is part of the South to South Just Transitions initiative.