Aligning Colombia's Financial System with Sustainable Development: Current Practice and Future Potential to Mobilize Investment for the Green Economy

Authors :
Juan Manuel Ramírez, Gabriel Andrade Bravo, Juan Luis Botero, Carlos Flórez, Camilo Botero
Organisation:
Inquiry into the Design of a Sustainable Financial System (UN Environment Inquiry), International Finance Corporation (IFC)

This document has been commissioned by the IFC and the UNEP Inquiry to explore the state of green finance in Colombia within the wider economic and financial sector context, and at the same time, to identify challenges and potential solutions that would enhance the application of environmental, social, and governance (ESG) criteria in the financial sector decision-making process and mobilize more investments for the transition toward a green economy.

The project involved two major steps:

1- it first undertook a holistic mapping of the Colombia green finance landscape with regard to the relevant stakeholders and the relevant types and volumes of finance, as well as current and planned financial policies, regulations, and standards;

2- it then identified the challenges that prevent increased green capital flow, and discussed how these might be overcome.

The consulting team conducted more than 32 interviews with the heads of relevant institutions in the financial sector - specifically, private pension funds, private equity funds, insurance companies, commercial banks, development banks, asset managers, financial associations, government and regulatory agencies, and private standard setters, underpinned by desktop research based on public information sources.

Countries :