Inter-American Development Bank (IDB) Approved an $800 million loan to support policy reforms aimed at promoting “sustainable and resilient growth in Colombia”. Of the total amount, $100 million comes from the Korea Infrastructure Fund (KIF) and another $100 million is part of the risk transfer mechanism agreed between the Islamic Development Bank and the Government of Sweden through the Agency for International Development (CIDA).
(Colombia will sign a loan to combat climate change.)
In addition, this loan has received parallel financing from the French Development Agency in the amount of 228 million dollars (200 million euros) and the German Development Bank (KfW) for 170 million dollars (150 million euros). The UK Government, through its UK-SIP programme, funds technical cooperation resources for the development of public policies for the programme..
The program will support various recovery activities in the context of the health emergency due to COVID-19, including strengthening the capacity of the Government of Colombia to plan, manage and finance climate action. Among other measures, the program will facilitate the publication of the country’s Nationally Determined Contributions (CND) update, publication for public consultation on the 2050 Long-Term Decarbonization Strategy and publication of the Green Bond Reference Framework. kings.
(Ingreso Solidario has been classified as a “positive” program by the Islamic Development Bank.)
It will also promote economic opportunities based on the sustainable use of natural capital and the development of circular economy models, with a focus on sustainable forest management and use, climate-smart agriculture and green business.
In addition, the program plans to enhance the country’s energy transition by promoting energy alternatives in transportation with the approval of energy conversion law, Publication of a draft resolution for public consultation on low- and zero-emission vehicle technologies, as well as the issuance and publication of a resolution to encourage the establishment and use of mixed stations with recharging points, and the decree on preferential parking for electric vehicles.
The country’s population in general will benefit from the programme, by reducing net greenhouse gas (GHG) emissions, reducing air pollution from internal combustion vehicles and developing a diversified, cleaner and more resilient energy matrix. Nearly two million agricultural producers (about 30% of women), will also benefit from knowledge transfer to improve productivity while integrating climate-smart agriculture standards and good practices for resilience to climate change.
Esta operación se encuentra alineada con la Visión 2025 – Reinvertir en las Américas: Una Década de Oportunidades, créada por el BID para lograr la recuperación y el crecimiento inclusivo de América Latina y el Caribes, digital en de las nomírea Climate change.
The IDB loan of USD 700 million has a repayment period of 20 years, while the IDB loan of USD 100 million has a repayment period of 25 years. Both with a seven-year grace period.
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