Colombia faces the challenge of reducing its greenhouse gas (GHG) emissions in the agriculture, forestry, and other land use (AFOLU) sector, which accounted for about 58% of the country’s total GHG emissions in 2020.4 To meet its updated Nationally Determined Contribution (NDC) target of a 51% reduction of 2020 emissions by 2030, Colombia needs a compounded annual reduction rate of 2.22%.5 Achieving these ambitious NDC targets requires a substantial increase in annual investments, ranging from 0.7-1.2% of the Gross Domestic Product (GDP), significantly higher than the current average of 0.16%.

This Readiness grant proposal aims to support Colombia achieving its ambitious emissions reduction targets by promoting climate action in the sector that accounts for over half of the country’s GHG emissions; and working with the country’s most important funding body of the AFOLU sector, Finagro, and its financial intermediaries in meeting the GCF accreditation standards. To do so, the project will work with key stakeholders, including Finagro, Bancamia –a primary financial intermediary–, and the Financial Superintendence of Colombia (SFC). The primary objectives include operationalizing Finagro’s ESMS, ESS and Gender Policies in support of Finagro’s GCF accreditation, strengthening the capacity of financial intermediaries to implement GCF-funded projects, and assisting the SFC in implementing the country’s green taxonomy in the agriculture and forestry sectors.