Colombia

Colombia is the most biodiverse country per square kilometer in the world. Biodiversity management affects the social and economic development of a substantial part of the population. Biodiversity is an issue of interest for national economic policy due to its impact and proof of this is the host country for the COP 16 of the Convention on Biological Diversity to be held in October and November 2024, in the city of Cali.

BIOFIN started activities in Colombia in March 2015, joining a group of forty-two beneficiary countries of this initiative. Since then, BIOFIN has been generating strategic alliances with public and private entities to promote financial mechanisms that contribute to closing the biodiversity finance gap in Colombia.  This effort is based on two main strategies: firstly, the strengthening of national and local planning processes for biodiversity management and, secondly, the formulation and implementation of financial solutions to increase or redirect investments towards positive biodiversity management. Through such strategic partnerships, UNDP Colombia BIOFIN has supported the mobilization and catalyzation of US$14.2 million that will directly address the biodiversity financing gap through six financial solutions and two components, which support the improvement of an enabling environment for biodiversity financing.

Colombia was one of the first countries to assess the impact of agricultural sector incentives on biodiversity, and the assessment was completed and includes a series of recommendations for reforming harmful subsidies. This assessment summarizes the results of the analyses carried out by BIOFIN Colombia over the last three years, at the national level and in particular in the "La Mojana" region.

The analysis of incentives led to a strong collaboration with FINAGRO, one of Colombia's largest development banks supporting the agricultural system, which will allow for testing reform options for prioritized incentives. Based on this work, FINAGRO will now implement a biodiversity safeguard system for all its financial instruments. BIOFIN will continue to support FINAGRO in the design, integration and implementation of environmental safeguards for sustainable agricultural credit allocations. The work represents a major step towards GBF Target 18 in Colombia.  The experience of this effort contributed to the generation of a Guide to redirect subsidies harmful to biodiversity and improve their impacts on people and nature.

Since 2021, UNDP BIOFIN Colombia has been supporting the implementation of the District Programme of Payments for Environmental Services, in partnership with the Secretariat of Environment of Bogotá. The total value of the cooperation agreement was US$1,500,000, in which UNDP through BIOFIN financed US$500,000, the rest of the resources coming from 1% of current revenues that should be directed to the protection and conservation of strategic ecosystems that provide water resources to Bogotá DC. As a result of this work, the need has been identified to continue engaging communities located in strategic ecosystems that provide water resources to the city of Bogotá, through medium-term conservation agreements that allow the protection, conservation, and restoration of ecosystem services, while guaranteeing seed capital to generate sustainable livelihoods for the communities. The need has also been identified to finance programmes of this type through a combination of various sources of funding, both public and private, that allow for a greater margin of action and environmental impact on the intervened ecosystems and the population that inhabits them.

Read about other results in:

Second Innovation Challenge in Colombia: Biodiversity and Insurance | BIOFIN

Habitat Banking in Colombia: Preserving Biodiversity and Creating Economic Opportunities | BIOFIN