November 2008

Country Profile Colombia

Colombia shares a border with Panama and thus links Central and South America. Its equatorial location, terrain (above 5,000m altitude) and maritime regions (around 3,000 km of coast) provide for extreme rainfall, making conditions perfect for the evolution of a biodiversity hotspot. The tropical rainforests, floodplains and peat forests covering approximately half of the country serve as a huge yet vulnerable carbon store and sink. Illegal felling and the conversion of forest into cropland and coca plantations destroy around 100,000 ha of forest each year. Almost half of Colombia’s territory is affected by erosion and the use of agrochemicals causes serious water pollution.
Along with these problems come the climate-related risks of rising sea levels, greater climate variability, increasing desertification, changes at Andean altitudes (loss of glaciers and damage to the Paramo plateau hydrological regime) and the spread of tropical disease like malaria and dengue fever.
Colombia’s economic success (8.2 percent growth in 2007) can be attributed to its vast natural resources (oil, coal, nickel, emeralds and agricultural products), advanced industrialisation and human capital. This success is, however, dampened by less favourable conditions concerning human rights, democracy, political stability and environmental and social sustainability. Promised reforms often fall foul of the drugs mafia and guerrilla forces dominating the country’s crisis areas.
The country has a relatively low emission factor and low electricity prices. Together with its comparatively strong economical development these aspects make it difficult for project developers to identify attractive CDM activities in Colombia.     

Nevertheless, the institutional environment has been created, the number of domestic CDM players keeps on rising steadily and a dynamic market has ensued.
Colombia is a member of the Andean Community (Comunidad Andina de Naciones, or CAN), with which the EU would like to sign an association agreement. Related German activities involving GTZ, CIM, InWent and KfW concentrate on supporting local peace initiatives in an effort to promote peace and prevent conflict. GTZ also works closely with the Colombian Academy for Physics and Natural Sciences (ACCEFYN). This has given rise, for example, to a GHG inventory and a study on emissions reduction potential which shows that afforestation activities will achieve the biggest reductions by 2010. Around 24 of 36 million t CO2/year will be saved through the use of carbon sinks; this is not part of the CDM. Colombia has signed memoranda of understanding (MoUs) with Canada, the Netherlands and France.

The Guajira Area has strong winds with average wind speeds between 5 and 11 metres per second throughout the year and therefore large potential for wind projects.

The Andes offer ideal conditions for hydro power. Estimations of potential for large hydro stations range around 93 GW and for small installations around 25 GW installed capacity.

Besides renewable energy from hydro and wind, Colombia has abundant potential for biomass and geothermal energy projects. According to recent research, agricultural waste and biomass crops could potentially provide over 16,000 MWh of energy. Regarding solar energy, Colombia’s average solar radiation is 4.5 kWh/m2 per day.

There are currently 44 projects in the pipeline, of which 17 are already registered. These projects will generate 6,756 kCERS by 2012. Switzerland is involved in five projects, making it the most active investor country. Although there is only one project with German involvement, the associated N20 avoidance activities have achieved the greatest reductions, with 339,688 CO2-equivalent/year. The project is located at two fertiliser factories in the harbour town of Cartagena. Four hydropower, three biomass, one wind power, one oil-to-gas fuel switch and a public transport project (TransMilenio) in the Colombian capital of Bogotá reflect a highly diverse CDM sector. A pilot project for sectoral CDM in the palm oil industry has also been submitted for registration. In addition, some 32 power plants (approx. 80 percent of national production) stand to generate an annual 757,067 CERs by reducing their emissions and switching to renewable energy.

The Office for the Mitigation of Climate Change (OCMCC) serves as the DNA. It is set up under the Ministry for the Environment, Housing and Spatial Planning (MAVDT) but remains a temporary arrangement for the time being. This results in not a very strong DNA which in addition is understaffed. The OCMCC is currently being restructured, however.
Almost unique among developing countries, Colombia has a DOE, the Colombian Institute for Technical Standards and Certification (ICONTEC).

Host country approval

Under the host country approval procedure, applications are considered by science, planning and climate change committees. Although by law host country approval should only take 45 days to obtain, initial experience shows that it can take up to 7 months for approval to be issued.

Further selected information:

Colombian DNA website
Executive Summary of Colombia's National Communication on Climate Change to the UNFCCC (PDF)
ACCEFYN and GTZ Internet portal: Gases de efecto invernadero
Greenhouse-Gas Emissions in Colombia 1998 – 2010 (PDF)
Study: Opciones para la reducción de Gases de efecto invernadero en Colombia
Acción Social (EZ) website
German Foreign Office: Information on Colombia
Bertelsmann Colombia Country Report
CIA World Fact Book Colombia
German-Colombian Chamber of Industry and Commerce
GTZ in Colombia
World Bank Information on Colombia
European Commission: The EU’s Relations with Colombia
EU Council Conclusions on Colombia (PDF)
European Commission: Colombia Country Strategy Paper 2007 – 2013 (PDF)