This Country Progress Report presents a systematic view of progress on sustainable finance in Colombia. It notes that the country has demonstrated good practices related to the Green Finance Flows Pillar, including the successful issuance of green bonds by three local financial institutions. The government has also released a roadmap for the development of green financial products, and annual reporting of green finance flows is recommended and backed up with a user-friendly tool. Further development could include an official definition for green projects, green financial products and services, and the enhancement of reporting methods for green finance flows such as broadening and systematizing current reporting processes.
These efforts build on Colombia’s environmental and social (E&S) regulations, which were developed in the early 1990s. In addition, Asobancaria, the Colombian Banking Association, launched an E&S framework for the financial sector—the Green Protocol—in 2012 and released General Guidelines for the Implementation of E&S Risk Analysis in 2016. Monitoring and transparent reporting on the management of E&S risks has also been promoted by initiatives such as Sustainable Colombia in 2015, in collaboration with the InterAmerican Development Bank.