Colombia has established a green taxonomy to mobilise public and private sources of funding, the first in the Americas to develop such a tool.

A green taxonomy is a classification tool to allow investors to understand how economic activities contribute to environmental targets.

"Colombia is proud that, here in New York, this Green Taxonomy of Colombia is being launched, which is going to become a reference model for other emerging markets, hand in hand with the private sector, in Latin America,” President Ivan Duque said at the New York Stock Exchange, where he launched the taxonomy.

The objectives of the taxonomy are to mitigate climate change, adapt to climate change, conserve ecosystems and biodiversity, and focus on water management, soil management, the circular economy, and pollution prevention and control.

The goals will be narrowed on the sectors of energy, construction, waste management, emissions capture, water supply and treatment, transport, information and communication technologies, and manufacturing.

Colombia’s green taxonomy differentiates from other taxonomies around the world, as it also has a section on land use. Forestry, agriculture and livestock make up 59% of the country’s greenhouse gas emissions.

“This is the first time that an emerging market has embraced the green taxonomy, and it is the first time that we include things like biodiversity and livestock, water and land protection, as well as how we are increasing our energy matrix in a cleaner way,” Duque said.

Diego Mesa, Colombia’s minister of mines and energy, said on LinkedIn the green taxonomy will keep investors from greenwashing, since they can know their economic commitments will actually contribute to environmental targets.

He also said the president’s team met with representatives from Goldman Sachs and other banks to discuss infrastructure and renewable energy opportunities, especially green hydrogen.

Are you missing out on ACCELERATE?
Gain valuable insight into the global oil and gas industry's energy transition from ACCELERATE, the free weekly newsletter from Upstream and Recharge.