In a groundbreaking move towards sustainability, Colombia is poised to announce a $40 billion investment plan aimed at replacing revenues lost from declining fossil-fuel exports. This initiative comes in light of the country’s decision to halt new oil and gas exploration two years ago. Susana Muhamad, Colombia’s environment minister, shared insights during an interview at New York Climate Week, stating that the formal unveiling of this plan will take place at an economic fair on October 2.
The investment strategy is part of a broader economic transformation, with Muhamad emphasizing that up to $10 billion is expected to come from international financial institutions and developed nations. The funds will be directed toward developing sectors focused on nature-based climate solutions, clean energy initiatives, electrification of transportation, and sustainable agricultural practices. “This portfolio is about developing sectors that could start replacing oil revenues,” Muhamad explained.
As Colombia gears up for the annual biodiversity summit, COP16, on October 21, Muhamad is set to engage with officials to negotiate potential deals similar to the Just Energy Transition Partnerships (JETPs) established between wealthier and developing nations. These partnerships aim to accelerate the transition away from fossil fuels, a goal that has seen varying levels of success in countries like South Africa and Indonesia.
However, past JETP agreements have faced challenges, primarily due to political divisions and bureaucratic hurdles within recipient countries. To enhance the chances of success, Muhamad indicated that this new approach would involve greater participation from multilateral development banks in financing and providing technical expertise. The Inter-American Development Bank will lead the initiative, with the U.S. informally coordinating efforts.
As Colombia navigates its ambitious climate agenda, it remains committed to phasing out new oil and gas exploration licenses, despite economic pressures, including recent wildfires and energy shortages. The stakes are high, with oil and coal constituting nearly half of the nation’s exports. “That’s a huge task for our country,” Muhamad stated, highlighting the need for international support to realize this transformative vision.
