Colombia REDD+ Finance and Markets Assessment
This report assesses and provides advice on Colombia’s preparedness for attracting private finance and participation in REDD+.
It states that the Colombian government has a relatively high capacity for REDD+. However, the government lacks a clear and streamlined authority for decision making, which will make it difficult for the country to make key decisions related to designing and regulating its REDD+ program. Likewise, there is no comprehensive budget for finalizing the build-out and administration of this program. It has been mainly donor funded to date.
Colombia, nonetheless, has a very high potential for financing REDD+ and promoting markets and payment-for-performance. Its environmental taxes and fees can leveraged for attracting investment in REDD+ activities and it has relatively advanced financial regulations and market systems to support carbon trading both on a listed and over-the-counter basis.
The report notes that international markets that accept forest carbon credits have been slow to evolve. It says this is positive in that it gives Colombia time to develop measurement and monitoring activities and national versus regional carbon accounting systems. But it is less than optimal for the local communities that need support now in the face of deforestation and degradation.