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COLOMBIA:

Programmatic Forest Country Note

Deep Dive into Forest & Landscape-Smart

Investments November 6, 2017

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COLOMBIA: Programmatic Forest Country Note

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© 2018 The World Bank 1818 H Street NW, Washington DC 20433

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Country Note. Deep Dive into Forest & Landscape-Smart Investments. © World

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Photography: Cesar Oleksy on Pexels (Cover); Pxhere (2); Lia & Jeremy on Practical Wanderlust (3); Diego Guzman

on Unsplash (7); Daniel Camilo Preciado on UnMinutoRadio (9, Top); Juan Carlos Sierra on Revista

Semana (9, Bottom); Bosques de Paz (10); Robinson Henao on EAFIT (13, Top); Office of the

Colombian Presidency on Semana (13, Middle); RCN Radio Colombia (13, Bottom); Edward Parker on

WWF (14); Archivo Patrimonio Nacional (16); Ruben Gil on ElCampesino.com (17); Marisol

Lopez/Sinchi (20, Top); Forest Stewardship Council (20, Bottom); Y.J. Rey-Millet on WWF (22);

ElTiempo.com (24, Top); EFE on ZonaCero (24, Middle); Herminso Ruiz on ElEspectador.com (24,

Bottom); Guillermo Tapia on Getty Images (26); Neil Palmer/CIAT on WRI (29, Top); Jordan

Hardin/American Specialty Tea Alliance (29, Bottom); Ministry of Environment and Sustainable

Development (30, Left); ExtraNoticias.com (30, Right); Ministry of Agriculture and Rural Development

(31); Office of the Colombian Presidency Archives (33, Left); World Bank Archives (33, Right); Franka

Braun (34); Savia Botanica (35); Alexander Rieser (37, Top); Alfredo Fernandez (37, Middle);

Earth.com (37, Bottom); World Bank Archives (38, Top); World Bank Archives (38, Bottom); Savia

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Left); World Bank Archives (41, Top Right); World Bank Archives (41, Bottom Right); Jose Antonio

Arana/CIAT (42, Top); Ministry of Environment and Sustainable Development (42, Bottom); Stock

Photo (43); The Tenure Facility/PCN (44); 123RF (45, Top); Daniel Noll & Audrey Scott (45, Bottom);

Yungueña on Wikimedia (Back Cover).

http://www.worldbank.org/

mailto:[email protected]


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Acknowledgements

This note was prepared by Franka Braun,

Augusto Castro, and Rodrigo Martinez. The

team interviewed various representatives

of the Government of Colombia, GGGI, and

the Government of Norway: Carlos Alvarez

Descampe, Diana Vargas, Katherine

Ovalle, Martin Perez and David Urrego

(MADS); Marlene Velasquez and Nelson

Lozano (MADR); Javier Rojas (DNP); Luz

Marina Arevalo (UPRA); Luis Carlos Morales

(FINAGRO); Carolina Jaramillo, Camilo

Ortega (Global Green Growth Institute),

Elise Christensen (Embassy of the

Government of Norway); Erwin De Nys,

Ivonne Moreno, Luz Berania Diaz, Miguel

Pinedo, Marcelo Acerbi, Ellysar Baroudy,

Werner Kornexl, Paola Agostini, Gerhard

Dieterle and Juan Florez from (IFC) from the

World Bank Group provided valuable

comments and inputs.


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Key Facts

•Restore 1 M ha of degraded landwithin the 20 x 20 land restorationinitiative

•Reduce cattle pasture to 28 M ha by2019

•Increase agricultural crop plantationsto 1.7 M ha by 2018 (ColombiaSiembra)

•Reduce annual deforestation to90,000 Ha or less by 2018

•Achieve zero net deforestation in theColombian Amazon by 2020

•210,000 new Ha under restoration by2018 and 700.000 more by 2020

•End loss of natural forest by 2030

•NDC: 20% - 30% GHG emissionsreduction with respect to Business-as-Usual by 2030. AFOLU included.

Climate

•0.6% of Colombia’s GDP

•In 2014, 740 companies in the woodindustry generating 45,000 jobs

•5,300 micro-enterprises in the sectorgenerating 20,000 jobs

•In 2011, US$ 676 M (1.2 % of totalmerchandise exports) were: wood,pulp, paper & furniture

•Industry demands of 5,5 million m3 ofprimary processed wood products,30% was imported

•Environmental degradation inColombia (including deforestation andforest degradation) costs 3.7% of theGDP

•25.7% of Colombian population (morethan 11 M people) inhabit forests

Forest Economy

•53.64% of country mainland area are forests

•457,6000 Ha of commercial forest plantations with 30,000 owners

•Between 1990--2010, 6.2 M Ha were lost at a rate of 310,349/year

•124,000 Ha of forests were lost in 2015, a 12% reduction in the deforestation rate with respect to the year 2014

•18 M Ha reforestation potential (IGAC)

•25% of extracted timber between 2010 and 2012 obtained from protected areas

•10% of planet’s biodiversity resides in Colombia

•2nd country with greatest biodiversity

•1% of parcels cover 53.8% of available land; 90% of parcels share 25% of land

•Protected areas cover 15% of total natural forests (9,4 M Ha)

Forests and Landscapes


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Table of Contents

Acknowledgements ................................................................................................................... 2

Key Facts ................................................................................................................................... 3

Acronyms & Abbreviations ........................................................................................................ 5

Executive Summary: Colombia Deep Dive ................................................................................ 7

1. Key Success Indicators for Forest Landscapes in Colombia ............................................ 8

1.1. WBG Responses and Possible GNU Support .............................................................. 11

2. Main Policy and Engagement Issues .............................................................................. 13

2.1. WBG Responses to Policy/Engagement & Possible GNU Support ............................ 15

Starting Point: Promoting Land-Use and Forest-Smart Investments in Colombia .................. 16

1. Forests’ Contribution to Sustainable Development in the Republic of Colombia .......... 17

1.1. Overview of Colombian Forests .................................................................................... 17

1.2. Livelihoods and Pathways Out of Poverty.................................................................... 19

1.3. Economy: Jobs and Wealth Creation ........................................................................... 20

1.4. Contribution to Other Economic Sectors ..................................................................... 22

2. Current Challenges and Opportunities for Forests in Colombia ..................................... 23

2.1. Contributions of the Agriculture, Forestry, and Land-Use Sector (AFOLU) to National

GHG Emissions ..................................................................................................................... 23

2.2 Causes of Forest-Cover Change in Colombia ............................................................... 24

2.3. Opportunities for Reducing Pressure in Post-Conflict Areas of Colombian Forests . 27

2.4. Opportunities for Promoting Sustainable Forestry and Forest Smart Investments . 29

2.5. Private Sector Engagement .......................................................................................... 30

3. National Policies & Plans Related to Forests ................................................................. 31

3.1. Country-Driven Plans & Strategies related to Forests ................................................ 31

3.2. Ongoing Efforts in the AFOLU Sector: Implementation of National Plans ................. 33

4. The World Bank’s Engagement: Promoting a Forest- and Land-Use Smart Development

Approach ............................................................................................................................. 35

4.1 Sustainable Forestry and Land-Use Smart Interventions ........................................... 37

4.2. Policy Support and Analytical Work ............................................................................. 40

5. Government Coordination Mechanism ........................................................................... 42

6. Conclusions ..................................................................................................................... 44


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Acronyms & Abbreviations AFD French Agency for Cooperation

AFOLU Agriculture, Forestry, and Land-use

APC Agency for International Cooperation

ASA Analytic and Sector Work

ASP Amazon Signature Program

BAU Business-as-Usual

BE Bank Executed

BioCF ISFL Bio-Carbon Fund Initiative for Sustainable Forest Landscapes

BMU German Federal Environment Ministry

CAR Regional Environmental Corporations

CC Climate Change

CCNAP Climate Change National Adaptation Plan

CERAC Conflict Analysis Resource Center

CIAT Centro Internacional de Agricultura Tropical

CIPAV Centro para la Investigación en Sistemas Sostenibles de Producción Agropecuaria

CONPES Consejo Nacional de Política Económica y Social

CPF Country Partnership Framework

CSA Climate Smart Agriculture

DANE Departamento Administrativo Nacional de Estadística

DNP Department of National Planning

DPL Development Policy Loans

ENAREDD+ National Strategy for Reduction of Emissions from Deforestation & Forest Degradation

ENR Environment and Natural Resources

ER Emission Reductions

FARC-EP Revolutionary Armed Forces of Colombia- People’s Army

FCPF Forest Carbon Partnership Facility

FEDEGAN Federación Nacional de Ganaderos de Colombia

FINAGRO Fondo para el Financiamiento del Sector Agropecuario

FIP Forest Investment Program

FLEGT Forest Law Enforcement, Governance and Trade initiative

GCF Green Climate Fund

GDP Gross Domestic Product

GEF Global Environment Facility

GG Green Growth

GGGI Global Green Growth Institute

GGP Governance Global Practice

GHG Green House Gases

GIZ German Cooperation Agency

GNU Germany, Norway, U.K.

GoC Government of Colombia

GP Global Practice

HACCP Hazard Analysis and Critical Control Points


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HCVA High Conservation Value Areas

IBRD International Bank for Reconstruction and Development

ICR Incentivo a la Capitalización Rural

IDB Inter-American Development Bank

IDEAM Instituto de Estudios Ambientales y Meteorológicos

IFC International Finance Corporation

IFI International Financial Institution

IGAC Instituto Geográfico Agustín Codazzi

INDC Intended National Determined Contribution

KfW German Development Bank

LAC Latin America and the Caribbean

LCDS Low Carbon Development Strategy

MADR Ministerio de Agricultura y Desarrollo Rural

MADS Ministerio de Ambiente y Desarrollo Sostenible

MDTF Multi-Donor Trust Fund

MRV Measuring, Reporting, and Verification

NAMA Nationally Appropriate Mitigation Actions

NDC National Determined Contribution

NDP National Development Plan

NTFP Non-Timber Forest Products

OECD Organization for Economic Co-operation and Development

OSILP Orinoquia Sustainable Integrated Landscape Program

PINES Investment Projects of National and Strategic Interest

POT Plan de Ordenamiento Territorial

PPP Public-Private Partnerships

PROFOR Program on Forests

PTSP Plan Todos Somos PAZcífico

RE Recipient Executed

REDD+ Reducing Emissions from Deforestation and Forest Degradation

REM REDD+ Early Movers

SCD Systematic Country Diagnostic

SURR Social, Urban, Rural and Resilience

TA Technical Assistance

TNC The Nature Conservancy

TP Timber Products

UAF Unidad de Agricultura Familiar

UNFCCC United Nations Framework Convention on Climate Change

UN-REDD United Nations Reducing Emission from Deforestation and Forest Degradation

USAID United States Aid for International Development

WAVES Wealth Accounting and Valuation of Ecosystem Services

ZIDRES Zonas de Interés para el Desarrollo Rural Económico y Social

ZRC Zonas de Reserva Campesina - Farmers Reserves

ZRF Zonas de Reserva Forestal - Forest Reserves


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Executive Summary: Colombia Deep Dive

The following note was prepared to guide dialogue between the World Bank and the main

forest donors, Germany, Norway and the UK (GNU). The note aims at presenting how the World

Bank's Forest and Landscape Action Plan goals contribute to the Colombia’s National

Development Plan (NDP) policy objectives, building the foundations to achieve economic

development with low deforestation and sustainable peace. This Country Note, moreover,

describes the status of the forest sector in Colombia, highlighting its contributions to the

economy and rural communities and the challenges and opportunities facing the sector. In

addition, the note outlines the efforts made by the Government of Colombia, so far, to organize

the plethora of funding sources focused on rural development and climate change, whose

potential can be enhanced through the positive outcomes of the peace process taking place

with armed rebel groups. Last, the note also describes the key success factors for climate

resilient forest landscapes in Colombia and the programmatic approach of the World Bank

group to address those factors. Specifically, it identifies key success factors for forest- and

landscape-smart investments in Colombia and key asks for the GNU.

The main policy objective of the Colombian National Development Plan 2014–2018 (NDP) is

to build the foundations for improved, more equal, and sustainable territorial development


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and peace. The NDP integrates national processes and proposes transformational changes

to achieve the equitable development of rural Colombia while also prioritizing peacebuilding

in the areas most affected by the conflict.1 The NDP, moreover, sets goals for reducing

deforestation to 90,000 ha/year by 2018 and to zero by 2030.

The NDP set ambitious environmental goals that contribute toward both national development

priorities and climate change mitigation. Such objectives include: [i] reducing annual

deforestation in Colombia to 90.000 hectares or less by 2018; [ii] achieving zero net

deforestation in the Colombian Amazon by 2020; [iii] bringing 210.000 new hectares under

restoration by 2018 and 700.000 more by 2020; and [iv] ending the loss of natural forest by

2030. Additionally, the strategic plan for Colombian Livestock proposes actions to significantly

reduce the number of hectares used for cattle grazing (from 39 million ha to 28 million ha).

The World Bank Group’s Colombia Country Partnership Framework (CPF) FY 2016–2021

supports the Government’s medium-term agenda towards a more integrated territorial

development, one of the fundamental pillars of the Government’s peacebuilding agenda. In

particular, the CPF aims at balanced territorial development and the need for enhanced

capacity for natural resource management in target regions. By piloting important forest and

land-use programs in the Amazon and Orinoquia regions, and by supporting the Government’s

Plan “Todos Somos PAZcífico” (in the Pacific Region), the World Bank contributes to a more

balanced territorial development in three regions that still lack development opportunities.

The World Bank’s land-use program in Colombia promotes the adoption of the programmatic

approach to forests and land-use, as outlined in the World Bank Forest Action Plan 2016. As

such, the ongoing cross-sectoral land-use program in Colombia includes a large portfolio of

operations using various World Bank instruments (see Chapter 4). A number of these

operations—such as the Heart of the Amazon Project, the Sustainable Cattle Ranching

Operation, the Magdalena Bajo Seco Reforestation Project—have piloted important private-

public partnerships for sustainable land-use change, as well as conservation and climate-

smart agriculture approaches. They serve as best practices for reducing deforestation and

land degradation, for promoting economic development in rural Colombia, and have

enormous scaling-up potential.

The peacebuilding agenda prioritizes integrated rural and agricultural development (Chapter

1 of the five negotiation chapters). Given that 58% of the municipalities where deforestation

is highest are also affected by the internal armed conflict, the activities promoted under this

chapter are fully aligned with activities promoting forest and land-use smart investments. This

provides an opportunity for integrating available funds assigned to social and peacebuilding

programs with REDD+ results-based financing. It is also important to highlight, however, that

developments previously hampered by the conflict might cause an increase in deforestation

once the peace agreement is concluded. Therefore, sound land-use plans and strategies will

be key to meeting Colombia’s zero-deforestation goal.

1. Key Success Indicators for Forest Landscapes in Colombia There are a few key factors that will have significant impacts on mitigating the climate change

impact of Colombia’s land-use sector, the largest contributor to Colombia’s GHG emissions. A

1 https://colaboracion.dnp.gov.co/cdt/prensa/bases%20plan%20nacional%20de%20desarrollo%202014-2018.pdf

https://colaboracion.dnp.gov.co/cdt/prensa/bases%20plan%20nacional%20de%20desarrollo%202014-2018.pdf


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successful forest and landscape program in Colombia would build on ongoing efforts and

integrate sustainable production systems with forest conservation/landscape restoration. We

identified six key factors for the land sector and note that these efforts require additional

financial support to increase their short/medium term positive impacts on climate change

mitigation and peacebuilding:

Programs for reducing deforestation are being

implemented in the Orinoco and Amazon

regions and should also target the Pacific

region. Colombia is planning to implement

programs for reducing deforestation tailored to

the specific contexts and considering regional

differences regarding the causes of forest-cover

change. The three regions mentioned above

together comprise 81% of forest-cover, and 70%

of CO2 emissions from the AFOLU sector. 2 To

date, financial resources have been pledged to

support the design and implementation of such

programs in the Amazon and Orinoco regions

(even if departments with high deforestation

rates, such as Putumayo and Guainía, have not

yet been fully included in either program).

However, additional investments would be

required to implement a third zero-deforestation

program in the Pacific region. This would

contribute to consolidate zero-deforestation

programs across the country and reduce the

risk of deforestation leakages. As such,

Investment finance needs to be identified.

Climate-smart technological packages for the agricultural sector are being designed and

widely adopted. The Ministry of Agriculture and Rural Development (MADR) is preparing

climate-smart packages. So far, CSA practices have a low adoption rate and are often

implemented at not-significant scales. 3 There is a need for properly designed incentive

packages (including technological packages, technical assistance, and financial incentives,

among others) to foster wide adoption.

Bottlenecks for implementing large-scale forest plantations and sustainable forest

management are being identified and overcome. Despite Colombia having made efforts to

promote the forestry sector, the area of commercial plantations has not grown as expected

(about 400,000 ha). Investments to overcome identified barriers would be related to [i] the

improvement of the land tenure system, [ii] the enhancement of the institutions providing

services to the sector (particularly to institutions in charge of providing allowances, sanitary

authorizations and technical assistance), and [iii] the consolidation of sustainable value

2 FAO 2015; IDEAM 2016: National and departmental GHG Inventory of Colombia, 3rd National Communication 3 World Bank et al., 2015


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0

chains. In addition, investments are needed to organize communities to manage forests and

overcome barriers to landscape restoration.

Reducing the areas assigned to cattle ranching from the current 39 million hectares to 28

million hectares, transforming the remaining areas to sustainable and productive livestock,

and releasing areas for conservation and other uses are all important objectives for the rural

development of Colombia. Enteric fermentation represents the 18.48% of the greenhouse gas

emissions generated in the country (48.51% from the agricultural and livestock sector) and is

also a major factor in the emissions of land-use, change in land-use, and forestry categories.

The Government plans to reduce the area currently dedicated to cattle ranching and to

promote sustainable, climate-smart cattle ranching systems in the remaining area.

To attract much-needed investments for the climate-smart transformation of rural

landscapes, Colombia needs to attract private sector capital and needs to develop incentive

mechanisms, as well as public-private partnerships that enable the leveraging of private

sector capital toward climate-smart investments. Efforts in this direction are being channeled

through the LAC Tropical Forest Alliance 2020, of which Colombia and Brazil are the pioneer

countries. The Colombia chapter, however, needs to be up and running for increased visibility

and global pressure on multi-national companies sourcing in Colombia.

Under the Joint Declaration, Colombia has a commitment to establishing a National Financial

Instrument that can receive and channel contributions for land-use smart policies, on-the-

ground investments, and verified emission reductions. In its governance structure, this

instrument is to include a coordination committee that has balanced representation from the

central government, regional governments, civil society (including the private sector), and

indigenous peoples. Such a mechanism is urgently needed and must be anchored in a

national institution with a clear mandate and capacity to coordinate multiple sectors.


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1

1.1. WBG Responses and Possible GNU Support

Success Factor WBG Response Ask for GNU Support

Programs for reducing

deforestation and land-

use based emissions

are implemented in at

least the Pacific,

Orinoco, and Amazon

regions. More

investment sources

identified.

1. Piloting Heart of Amazon

project as part of Amazon Vision,

which leads conservation

agreements with farmers (GEF).

2. Developing Orinoquia

Sustainable Landscape program

(BioCF).

3. Supporting consultation

processes in the Pacific region

(FCPF readiness).

4. Approached by Ministry of

Environment (MADS) to help

develop Vision Pacifico.

5. Supporting the Plan Todos

Somos PAZcífico (“We Are All

PEACEific”) through two

investment operations, a Water

Supply and Basin Sanitation

Infrastructure Development

Project and the Acuapista project,

which seeks to improve fluvial

transport in the Pacific Region.

1. Provide additional resources to

support Vision Pacifico, i.e.

include the program in the BioCF

ISFL or FCPF pipelines. Additional

FCPF preparation funds will only

be available by June 2017.

Explore other options to rapidly

deploy initial grants.

• Initial phase: Support a team

to structure the Vision and

Investment Portfolio (ex. Plan

Maestro Orinoquia): US$1.5

million.

• Enabling Environment:

Develop regional Climate

Change Plans; strengthening

of CARs, territorial entities and

communities to implement

green supply chains; and

environmental territorial

planning: US$25 million.

• Investment phase:

Strengthening forest

governance, land restoration,

coastal erosion control,

implement green supply

chains: US$225 million.

2. Prioritize Colombia for

investment funding that allows

filling critical gaps to achieve ERs.

For example, Colombia should be

reconsidered under the Forest

Investment Program (FIP).

Climate-smart

technological packages

for the agricultural

sector are designed and

widely adopted.

1. Support the identification and

implementation of CSA

technologies and packages for the

Orinoquia region through BioCF

Plus, building on MADR/CIAT

agreement under INDC.

1. More flexibility to use BioCF

Funding for seed investments to

pilot CSA packages.


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2

Reduce the area

assigned to cattle

ranching from the

current 39 million ha to

28 million ha and

transform the remaining

area to sustainable and

productive livestock.

Construct public-private

partnerships (PPP), such

as the one promoted by

Ministry of Commerce,

that include 14 major

bovine meat producer

companies.

1. Through the Mainstreaming

Cattle Ranching Project, building

capacity to scale up investments

in sustainable livestock systems

(silvopastoral systems, SPS);

developing technological

packages appropriate to five

different geographical regions.

2. Finance the preparation of the

Cattle Ranching NAMA (registered

with UNFCCC).

3. Through IFC Advisory and

Investment Services, explore the

opportunity to support a “game

changer” PPP for bovine meat

exports.

1. Estimated investment needs for

NAMA implementation are

US$900 million (one of four

NAMAs under Colombia’s AFOLU

INDC targets).

2. Consider TA funds (through

IFC Advisory) for four companies

working on:

• Productivity increases at the

farm level (from small cattle

rancher to better pasture

management, silvopastoral).

• A pilot project to establish an

exporting route.

• Hazard Analysis and Critical

Control Points (HACCP) and

Climate Smart Supply Chain

approaches implemented in

the 4 companies and plants.

Attract private sector

capital for much-needed

investments for the

climate-smart

transformation of rural

landscapes.

1. Support, through the BioCF

ISFL and Mainstreaming Cattle

Ranching project, the

development of incentive

mechanisms, public-private

partnerships, and private sector

commodity chain dialogues that

allow for the leveraging of private

sector capital for climate-smart

investments.

2. Support TFA2020’s Colombia

Chapter (hired coordinator

through BioCF ISFL).

1. Establish relationships with UK,

Norway and German-based

agribusiness or forestry

companies with interest and/or

investments in Colombia.


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3

2. Main Policy and Engagement Issues To create an enabling environment for successful, climate-smart land-use and forestry

interventions, the policy areas that need work are:

Coordination: Donor coordination is emerging in

Colombia. There are increased efforts by the

Ministry of Environment (MADS) to articulate the

UN-REDD+, GIZ, and FCPF Readiness work. This

being said, Colombia is simultaneously

developing three large-scale Emission Reduction

initiatives (i.e., the REDD-Early Movers’ program,

the BioCF Orinoquia Sustainable Landscape

Program, and the Joint Declaration National-Level

Initiative) and plans to develop a fourth one for the

Pacific. Under each of these large-scale programs,

however, the institutional arrangement is

different, as are the implementation agencies,

procedures, and requirements. The result of these

multiple approaches is a fragmentation of

resources that has led to duplications in analytical

efforts, approaches to deforestation-free supply

chains, reviews of financial incentives, etc. The

newly created fund Colombia Sostenible, which

will be administered by the IDB, is supposed to

establish a platform for coordination. However, its

approval and operationalization have been

lagging. Therefore, there is still a vacuum in terms

of overall coordination. In addition, a national

financial mechanism with the capacity to channel

technical assistance, investments, and results-

based finance has yet to be defined, as well as a

national institution that administers such fund

and takes on sector coordination for large scale

land-use programs. The National Planning

Department could take on such role, but, so far,

the agenda is divided between the Ministries of

Agriculture and Environment, and neither has the

capacity or the mandate to coordinate a larger,

multi-sectoral effort with an overarching goal of

low-carbon development.

Land Policy: Developing a comprehensive land administration policy that includes [i] a clear

institutional framework for land administration (currently, responsibilities are spread over

eight different agencies); [ii] building an integrated land administration system where multi-

purpose cadaster and registry data are consistent, up to date, and include a complete record

of the territory; [iii] formalization of property rights; and [iv] improving territorial planning to

include updated territorial land-use plans (89% are currently outdated in the Orinoquia region,


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4

for example). Concerning the implementation of the multi-purpose cadaster, there is an

important opportunity to include specific environmental requirements that describe rural

properties with regards to exact geographical coordinates, the location of remaining native

vegetation, permanent preservation areas, areas of restricted use, legal reserves, etc. The

environmental information contained in the cadaster can eventually be part of a database for

control, monitoring, environmental and economic planning, and combating deforestation

Green Growth Policy: In 2012, Colombia adhered to the OECD’s Green Growth Declaration as

a step in its process of accession to that organization. The Declaration urges countries to

encourage green investment and the sustainable management of natural resources through

various policy instruments aimed at creating a low-carbon economy. The National

Development Plan (NDP) 2014-2018 established Green Growth (GG) as a crosscutting and

“all-encompassing” strategy to achieve both peace and sustainable development. The Law

that enacted the NDP (1753 of 2015) mandated that the National Government formulate a

Long-Term Green Growth Policy through the National Planning Department (DNP) and in

coordination with the Ministry of Environment (MADS) and other ministries. This policy should

define the objectives and avenues for sustainable economic growth.

Forestry Policy: Colombia is lacking a national forestry policy as well as a forestry law that

encompasses both natural and secondary forests. Similarly, as with land administration,

responsibilities are spread over various ministries and agencies, including MADS (which

oversees Natural Forests, ENAREDD+ development), MADR (focused on commercial forest

plantations and promotion of the sector), Regional Environmental Corporations (CARs, which

issue environmental licenses for establishing and harvesting in commercial plantations), and

FINAGRO (in charge of administering the forest incentive, CIF). Therefore, the sector lacks

clear targets, clear regulations, and a holistic promotion strategy.


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5

2.1. WBG Responses to Policy/Engagement & Possible GNU Support

Success Factor WBG Response Ask for GNU support

Coordination:

Promote the creation

of a national financial

mechanism and a

government

coordination

mechanism.

1. The WB could provide technical

assistance to help structure a

national REDD+ fund and an

effective government coordination

mechanism.

1. Ask GoC for a clear plan to

develop a financial mechanism

that involves a technical review of

possibilities, best options, and

technical assistance.

2. Improve overall donor

coordination to avoid resource

fragmentation.

Land Policy: Develop

a comprehensive

land administration

policy that includes

cadaster, land

registry, and land

formalization.

1. Programmatic Territorial

Development Policy Loan to support

the GoC in advancing towards

integrated territorial development

and planning through strengthened

land management systems and

institutions.

2. Investment Loan for institutional

subnational strengthening and

piloting in 11 municipalities of the

new Multi-Purpose Cadaster.

3. Investment Loan for the expansion

phase of the Multi-Purpose Cadaster.

4. TA, through the BioCF, to

mainstream environmental variables

into Territorial Land-Use Plans and

the Environmental Cadaster.

1. The effort to implement this

land policy on a nation-wide scale

is estimated to cost US$1 billion,

of which Colombia has secured

US$250 million through WB and

IDB support. More resources will

be needed and could be targeted

at the prioritization of areas with

high deforestation and land-use

change pressures.

Green Growth

1. At the national level, a

programmatic Policy Loan series

(first phase approved in November

2015 and the second phase under

preparation) is promoting policy and

institutional actions to support

various dimensions of green growth.

1. Coordinate and keep the flow of

information between IFIs related

to complementary DPL programs.

Forestry Policy

▪ 1. In-depth review and

recommendations for Colombia’s

commercial forestry sector. Make

specific policy recommendations on

institutional and regulatory reforms

needed for this sector to become

competitive and a source of

economic development, especially in

rural areas, through PROFOR study.

▪

▪ 1. Promote Colombia’s

reforestation potential and

objectives through jurisdictional

programs in Amazon, Orinoquia,

and Pacific regions, a measure

with important economic and

climate mitigation potential.


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Starting Point: Promoting Land-Use and Forest-Smart

Investments in Colombia

There are increasing global aspirations of achieving land-based greenhouse gas emissions

reductions (Paris Agreement), landscape restoration (The Bonn Challenge), and biodiversity

conservation (Aichi Targets). To contribute toward the achievement of these global

environmental priorities, the Colombian government [i] is formulating a National REDD+

Strategy (ENREDD) as well as other actions in the land sector that contribute to low-carbon

development; [ii] has signed a Joint Declaration of Intent with the Governments of Germany,

Norway, and the United Kingdom (UK) for cooperation on REDD+ and promoting sustainable

development; [iii] has expressed its commitment to achieving goals within the 20x20 Land

Restoration Initiative; and [iv] has presented a NDC which highlights the mitigation potential

of the Colombian LULUCF sector.

Efforts to promote sustainable forestry and forest-smart investments in Colombia should

consider the state of the current peace process and be aligned with peacebuilding priorities.

It is anticipated that the strategies leading to the achievement of the environmental and

sustainable development goals will be implemented along with agreements achieved between

the Government of Colombia and the Revolutionary Forces of Colombia-People’s Army (FARC-


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EP). Thus, innovative approaches will be required to achieve forest-based climate change

mitigation and simultaneously address emerging challenges related to the accomplishment

of the agreements—particularly from those related to the “sustainable development of rural

Colombia.” Such approaches would be of interest to the countries who held a mediation role

in the peace negotiation process, for example, as well as those interested in incentivizing the

reduction of forest-based GHG emissions, as is the case of Norway.4

1. Forests’ Contribution to Sustainable Development in the Republic

of Colombia

1.1. Overview of Colombian Forests

Protection of Colombia’s biodiversity is a global conservation priority. Colombia hosts close to

the 10% of the planet’s biodiversity and ranks second among the twelve countries containing

the greatest biodiversity in the world.5 In addition, the country ranks seventh in the world in

terms of area covered by tropical forests, with 6.42% of the total supply for tropical South

America and 1.5% of all forests on the planet.6 Moreover, Colombia ranks first in bird and

orchid species diversity; second in plants, butterflies, freshwater fish, and amphibians; and

seventh in terms of the amount of "frontier forests."

4 Castro-Nunez, A., Mertz, O., Sosa, C.C. (In review), Spatial associations between carbon in woody biomass and conflict-

related variables indicate potential synergies between forest-carbon storage and peacebuilding policies. 5 https://www.cbd.int/countries/profile/default.shtml?country=co 6 Available at http://www.fao.org/3/a-i4808e.pdf

https://www.cbd.int/countries/profile/default.shtml?country=co

http://www.fao.org/3/a-i4808e.pdf


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Although the total area of natural forest has been decreasing over time, it still covers 52.2%

of the country's mainland area. Colombia has a total mainland area of 114,174,800 hectares

(ha) of which 59,558,064 ha are covered by natural forests (Figure 1). Additionally, about

457,575 ha are covered by planted forests. Departments located in the Southeast

(Amazonas, Caquetá, Guainía, Guaviare, and Vaupés) are those with the largest area of

natural forests in the country, with more than 35 million ha (or approximately 50% of total

natural forests).

Figure 1. Forest-cover area in Colombia between 1990 and 2015.

Source: Authors based on FAO’s Global Forest Resource Assessment 20157

National protected areas cover 15% of total natural forests (9,338,137.50 ha), while

indigenous reserves represent 43% of the nation's natural forests (26,485,028 ha).

Additionally, about 4.5 and 1.1 million ha belong, respectively, to Afro-Colombian communities

and farmers’ reserves (ZRC, Zonas de Reserva Campesina). Other conservation categories

include regional protected areas (covering 3.2% of the total forest area), local protected areas

(0.4%), and Forest Reserves (ZRF, Zonas de Reserva Forestal). The ZRFs cover the greatest

part of the country's forest ecosystems (65,280,321 ha) and were declared in 1959 (by Act

2ª) to promote the development of the forestry sector and to protect soils and wildlife. To date,

6 million ha of ZRFs have been degraded or have changed their cover to other uses. This

indicates that despite efforts, Colombia has experienced intense forest-cover changes, mostly

caused by agricultural activities and livestock grazing in forest frontiers and municipalities

affected by armed conflicts. In territories affected by armed conflict, deforestation is generally

caused by illegal crops production, an activity commonly followed by livestock grazing and

causing significant wealth losses. Indeed, it is estimated that environmental degradation in

Colombia (including deforestation and forest degradation) represents losses equivalent to

3.7% of the Gross Domestic Product (GDP).8

7 Ibid. 3 8 World Bank (2016), WAVES Colombia Country Report.

50.0

51.0

52.0

53.0

54.0

55.0

56.0

57.0

58.0

59.0

60.0

61.0

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63.0

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66

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1.2. Livelihoods and Pathways Out of Poverty

Poverty affects 28.5 % of the total Colombian population, 63.4 % of which inhabit rural areas.

As shown in Figure 2, municipalities with higher values in the unsatisfied basic needs index

are mostly located in forest frontiers and colonization fronts. Furthermore, combinations of

factors such as poverty, unequal land distribution, violence, and illegal occupations have

forced people out of their lands. Indeed, the World Bank’s Systematic Country Diagnostic

(SCD) for Colombia (2015) reports that over the last few decades over 5.5 million people have

been displaced from rural areas.

Figure 2. Forest Carbon (as a proxy of forest-cover) and Unsatisfied Basic Needs in Colombia

Source: AGB maps developed by the Colombian Institute of Hydrology, Meteorology and Environmental Studies (IDEAM)

using Landsat satellite images and unsatisfied basic needs dataset elaborated by DANE.

Colombian forests are inhabited by about 25.7% of the Colombian population or more than

11 million people. This population is formed mostly by indigenous, Afro-Colombian, and

mestizo farmers. It is recognized that forest ecosystems provide goods and services that

contribute to rural inhabitants to varying degrees. Despite this, poverty in Colombia is

concentrated in rural areas.

Small-scale timber logging (TP) and non-timber forest products (NTFP) are critical for the

livelihood of forests inhabitants. However, lack of updated local-level datasets for Colombia

makes it difficult to describe trends in demand and consumption patterns, as well as their

contribution to rural households’ livelihoods (e.g. income or employment). Furthermore, it

makes it difficult to [i] characterize the importance of Colombian TP and NTFP in local, national

and international markets; [ii] understand constraints for effective and sustainable

harvesting; and [iii] identify opportunities that might arise for developing promissory products

and link them with sustainable value chains.


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1.3. Economy: Jobs and Wealth Creation

In Colombia, the forestry sector (including

commercial plantations) is not yet fully

developed. As such, about 25% of timber

extracted between 2010--2012 was obtained

from Natural Parks or protected areas (Figure

3). Meanwhile, shrubland contributed to the

greatest proportion of extracted timber and

plantations, with only 5%. From an ecosystem

services perspective, non-sustainable timber

extraction might imply a reduction in the

services (including carbon storage) provided

by both available9 and not available10 natural

forests. Beyond commercial plantations,

however, community forest management can

also have a role in stabilizing the forest-cover

and assuring a sustainable supply of Timber

Products (TP) and Non-Timber Forest

Products (NTFP). Moreover, organizing

communities to manage forests and paying

them for conservation services offers a great

opportunity for building peace. The land

tenure system has been identified as one of

the bottlenecks for both implementing

commercial forest plantations and creating a

stable structure of natural forest holdings in

Colombia. 11 Indeed, the World Bank’s

Program on Forests (PROFOR), estimates,

based on available data for the sector, that

the 457,575 ha of commercial forests plantations in Colombia belong to about 30,000

owners, of which over 70% have areas of no more than 25 hectares.12 This structure hinders

management, marketing, and technological innovation in the sector. However, ratification of

the ZIDRES Law (Areas of Interest for Rural, Economic and Social Development) and land

formalization might facilitate large-scale agricultural investments (including commercial forest

plantations). Communication routes, reduced availability of technical assistance, and lack of

medium and long-term planning tools have been mentioned by an official in the sector

(interviewed in the context of the present note) as bottlenecks for further promoting forest

plantations.

9 Forests not included in conservation schemes 10 Forests included in conservation schemes 11 Specifically, restrictions in the size of the land allowed to family units for agricultural production (UAF, from the Spanish

Unidad Agricola Familiar) 12 World Bank (2016), Informe Final para el programa “Colombia: Reforestación comercial potencial. PROFOR


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Figure 3. Timber extractions in Colombia by type of forest.

Source: PROFOR (2016)13

The forestry sector contributes about 0.6% of Colombia’s Gross Domestic Product (GDP) and

generates 0.2 % of the total labor force in Colombia. By the year 2011, the export value of

products (including wood, pulp, paper, and wooden furniture) was equivalent to

US$676,000,000 (1.2% of Colombia’s total merchandise exports), while imports were

equivalent to US$1,125 000000.14

About 740 companies operate in the wood industry, employing around 45,000 people. The

number of companies in the forestry sector has remained stable since 2005.15 Meanwhile,

the number of (permanent and temporary) employees has increased from 35,000 in 2005 to

45.000 in 2014. The paper and furniture manufacturing sectors generate most of the jobs in

the wood industry, employing 19,500 and 17,500 people respectively.16 This data, however,

only reflects companies employing at least 10 people (small, medium, and large companies).

However, a recent study estimates the existence of 5,300 micro-enterprises in the sector that

would generate about 20,000 additional jobs. It is worth noting, though, that data for both

forests plantations and the wood industry is incomplete and out of date. This makes it difficult

to design strategies that boost the development of the sector and related sub-sectors. As

such, improved tools for long-term planning in rural Colombia would favor the development of

the forestry sector.

An improved land tenure system would contribute toward sustainable rural development with

low deforestation and peace. Land distribution in Colombia remains highly unequal. Empirical

studies of Colombia's rural sector show that about 1% of the parcels cover more than half

13 Ibid. 13 14 http://www.fao.org/3/a-i4248e.pdf 15 Ibid. 13 16 Ibid. 13, 15.

5%

17%

25%53%

Timber extraction by procedence (2010 -2012)

Plantations

Available naturalforests

Not availablenatural forests

Shrub land

http://www.fao.org/3/a-i4248e.pdf


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(53.8%) of the available land, while about 90% of the parcels share approximately one-fourth

of the land.17 A further difficulty is the lack of complete land records since, currently, only 320

municipalities out of 1,102 municipalities have an updated cadastral database, a situation

that produces a high level of legal uncertainty over land ownership—in other words, close to

59% rural farms do not have a formal tenure.18 Today there is no cadastral record for 26% of

the rural land of the country. Furthermore, 66.5% of the plots for which cadastral information

exists have information that is out of date. Moreover, since cadastral data has traditionally

been used solely for tax collection purposes, important information for planning and

prioritization of investments (such as land-use, accessible infrastructure, and ownership) is

currently missing. Inequitable distribution of access to land resources causes significant costs

for society through poverty, conflict, and displacements. Meanwhile, unclear property rights

lead to unrealized agricultural growth potential and environmental degradation (e.g.

deforestation). Thus, improved sustainable territorial development requires, as a first step,

building an integrated land administration system where cadaster and registry data are

consistent, up to date, and include a complete record of the territory. The Government of

Colombia has defined a comprehensive land administration policy that includes a

multipurpose cadaster as an enabling instrument for the formalization of land tenure rights.

It is expected that this would reduce conflict over the access and use of land, as well as conflict

over land-use management.

1.4. Contribution to Other Economic Sectors Colombia's natural capital represents a significant proportion of overall per capita wealth.

Furthermore, Colombian forests provide several ecosystem services such as the regulation of

water flows, which improve water supply in the cities and help hydroelectric generation,

particularly in mountainous areas such as the Andean region. In addition, Colombian forests

provide habitats for an exceptionally large number of endemic bird species, carbon storage,

and numerous other ecosystem services.

17 Instituto Geográfico Agustín Codazi – IGAC. Estudio de los conflictos de uso del territorio colombiano, Escala 1:100.000,

Bogotá, Colombia/2012. 18 DNP (2016) Policy document for the adoption and implementation of a rural-urban multipurpose cadastre. CONPES 3859.

Bogotá, Colombia.


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2. Current Challenges and Opportunities for Forests in Colombia

A post-conflict scenario would create opportunities (as well as challenges) to develop

approaches for co-delivering climate change mitigation, sustainable rural development, and

peacebuilding. Between the years 2000 and 2013, the Colombian economy grew at an

average rate of 4.3% per year, though, in 2015, it had a 3.1 % growth rate (DANE, 2016).

However, while economic gains have generated benefits, challenges have also arisen in terms

of ecosystem conservation and a more sustainable management of the country’s natural

capital.

2.1. Contributions of the Agriculture, Forestry, and Land-Use Sector (AFOLU) to

National GHG Emissions

The AFOLU sector is the largest source of GHG emissions in Colombia. The areas used for

agricultural, forestry and livestock activities (AFOLU) represent 45% of the Colombian

mainland area. During 2010, the AFOLU sector contributed 58% of the country’s emissions

(130,341 Gg de CO2) and 43% (76,016 Gg de CO2) for 2012. 19 Among the AFOLU

components, conversion of forest lands to pastures and crops accounts for most emissions,

followed by enteric fermentation (Figure 4). These components, however, have great potential

for reducing emissions through measures already identified and prioritized in Colombia’s

National Development Plan. Not surprisingly, to succeed in the implementation of such

measures, it is necessary to enhance coordination among environmental and non-

environmental sectors, as well as removing barriers related to infrastructure, land rights, and

peacebuilding in rural areas.

Figure 4. Distribution of GHG emissions within the AFOLU in Colombia

Source: Authors based on IDEAM et al., 2015

19 IDEAM, PNUD, MADS, DNP, CANCILLERIA (2015), Primer Informe Bienal de Actualización de Colombia. Bogota D.C.,

Colombia. Available at http://unfccc.int/resource/docs/natc/colbur1.pdf

51%

14% 13%17%

36%

11%

20%

28%

Forest landconverted to

pastures

Forest landconverted to

crops land

Soil and manuremanagement

Livestock -enteric

fermentation

2010 2012

http://unfccc.int/resource/docs/natc/colbur1.pdf


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2.2 Causes of Forest-Cover Change in Colombia

Deforestation has been significantly

reduced since 2000, though the rate of

forest loss continues to be cause for

concern. Indeed, IDEAM just released the

results of the most recent study on forest-

cover change. The study estimates that

124,035 hectares of forests were

converted to other uses during 2015,

indicating a 12% reduction in the

deforestation rate with respect to 2014

(140,356 hectares).20 Meanwhile, between

1990 and 2010, about 6.2 million hectares

of forests were lost at a rate equivalent to

310,349 per year.

Colombia has been one of the few countries

that have voluntarily sent their forest

reference emission levels to the UNFCCC for

the period of 2000–2012. It was submitted

for the Amazon biome, which covers 40% of

the Colombian land surface and 67% of the

country’s total forest area. The forest

reference level was calculated as 82,883

hectares per year on average. An

adjustment was made for the 2013–2017

period of +10% over the value of the

average deforestation of 2000–2012. This

adjustment was justified according to the

expected post-conflict scenarios, which

suggests an increase in historical

deforestation trends. 21 Colombia aims at

presenting another national forest

reference level in 2018.

As Figure 5 shows, the highest deforestation rates are commonly found in the Amazon and

Andean regions. This is consistent with recent academic studies that highlight sub-national

(and even local) differences regarding the causes and rates of forest-cover change.22 For

example, despite high deforestation rates, studies indicate a recovery in Colombia’s forest-

cover trend between years 2000 and 2010 (a net gain in woody vegetation), mainly driven by

the implementation of economic and policy instruments for protecting forests and promoting

20 The most recent official data on deforestation is available here. 21 Ministry of Environment and Sustainable Development. Institute of Hydrology, Meteorology and Environmental Studies –

IDEAM. Proposed Forest Reference Emission Level for deforestation in the Colombian Amazon Biome for results–based

payments for REDD+ under the UNFCCC, Bogota, December 15-24, 2014. 22 See for example: Sánchez-Cuervo, A.M., Aide, T.M., Clark, M.L., Etter, A. (2012), Land Cover Change in Colombia: Surprising

Forest Recovery Trends between 2001 and 2010. PLoS ONE 7, e43943.

http://www.ideam.gov.co/web/sala-de-prensa/noticias/-/asset_publisher/96oXgZAhHrhJ/content/la-cifra-de-deforestacion-en-colombia-2015-reporta-124-035-hectareas-afectada?_101_INSTANCE_96oXgZAhHrhJ_redirect=http%3A%2F%2Fwww.ideam.gov.co%2Fweb%2Fsala-de-prensa%2Fnoticias%3Fp_p_id%3D101_INSTANCE_96oXgZAhHrhJ%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-1%26p_p_col_count%3D2&redirect=http%3A%2F%2Fwww.ideam.gov.co%2Fweb%2Fsala-de-prensa%2Fnoticias%3Fp_p_id%3D101_INSTANCE_96oXgZAhHrhJ%26p_p_lifecycle%3D0%26p_p_state%3Dnormal%26p_p_mode%3Dview%26p_p_col_id%3Dcolumn-1%26p_p_col_count%3D2


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forest plantations.23 Differences reflect diverse biophysical, socio-economic, demographic,

institutional, and political contexts.

Table 5. Changes in annual deforestation within Colombian regions

Source: Authors based on IDEAM et al., 2016

There is a geographical overlap between municipalities with high forest carbon content and

municipalities with high values of conflict indicators. According to the Colombian National

Planning Department (DNP), 58% of the deforestation in Colombia between 1990 and 2013

happened in municipalities experiencing armed-conflicts (Figure 4). 24 This highlights the

impact of the armed-conflict in forest-cover. However, while armed conflict has contributed to

forest loss, it has also contributed to forest conservation, in part because it has forced rural

farmers to abandon their lands and it has prevented the construction of large-scale

infrastructure projects in conflict areas.

Figure 4. Municipalities experiencing conflict and deforestation (1990-2013).

Source: DNP, 201620

23 Ibid. 24 24 https://colaboracion.dnp.gov.co/CDT/Prensa/Presentaciones/Dividendo%20Ambiental%20de%20la%20Paz%20FINAL%

202016-03-16.pdf

0

20000

40000

60000

80000

100000

120000

Def

ore

stat

ion

rat

e (h

a/ye

ar)

Period

Caribe

Andina

Amazonica

Orinoquia

Pacifico

DeforestationMunicipalities in conflict

https://colaboracion.dnp.gov.co/CDT/Prensa/Presentaciones/Dividendo%20Ambiental%20de%20la%20Paz%20FINAL%202016-03-16.pdf

https://colaboracion.dnp.gov.co/CDT/Prensa/Presentaciones/Dividendo%20Ambiental%20de%20la%20Paz%20FINAL%202016-03-16.pdf


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Agricultural activities (including illicit crop cultivation) and cattle pasture are the main causes

of deforestation in Colombia. These activities relate to land acquisition processes and are

influenced by the armed-conflict, resulting in land-use competition related to legal and illegal

uses. This situation is compounded in forest frontiers and remote municipalities characterized

by low institutional presence, lack of state control, and land tenure uncertainty.

The main causes of deforestation in Colombia (i.e. Illegal crops production and cattle pasture)

are linked to violence and land acquisition. Forest-cover loss attributed to illicit crops is

primarily related to the opening of a new colonization front, while deforestation caused by

cattle pastures is related to the expansion of the agricultural frontier and the consolidation of

urban areas. In addition to causing direct deforestation, illegal crops also have a catalytic role

in the colonization process. Furthermore, inefficient land-use and low soil productivity create

further pressure to continually clear more forests and expand the agricultural frontier.

Livestock production in Colombia is linked to low levels of productivity and marginal job

creation. Government data show that agriculture only generated 2.4 million jobs in 2011 and

livestock far less, with only 0.6 million. Based on information from the IGAC (Agustin Codazzi

Geographic Institute) activity livestock area occupies 35 million ha, of which only 15 million

are suitable for it.

In a post-conflict scenario, new (non-forest smart) investments on infrastructure, energy, and

mining could increase pressure on forests. Sectoral policies to promote economic

development and create conditions for sustainable peace could influence stakeholder’s


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decisions regarding land-use and land-cover change. The infrastructure, energy, and mining

sectors contribute greatly to the economy of Colombia (reflected in their contribution to GDP,

employment, and international trade balance). Despite this, the current impacts of these

sectors on forest-cover are relatively low when compared with the impacts of other economic

activities, such as agriculture. Particularly, if the peace agreement recently signed between

the Colombian government and the FARC-EP is ratified, additional pressures to forests would

arise from land restitution programs, as well as from programs for reallocating former

combatants.25

New (non-forest smart) large-scale agricultural investments would increase pressure on

forests. Industrial agriculture may increase in the future, particularly in the event of the

ratification of the peace agreement. This stability might attract investors and lead to increases

in agricultural activities, particularly in post-conflict areas in the Amazon, Pacific, and Orinoco

regions. Other scenarios that may alter land-use patterns relate to the Government of

Colombia’s plans of increasing biofuel production over 3 million hectares by 2020.

2.3. Opportunities for Reducing Pressure in Post-Conflict Areas of Colombian

Forests

Scaling current efforts to promote climate-smart agriculture and livestock will reduce pressure

on Colombian natural forests and mitigate climate change.26 The Ministry of Agriculture and

Rural Development (MADR) is working, in collaboration with various stakeholders (including

research centers and producers associations), on the development of climate-smart

packages.27 It is expected that the adoption of these practices and technologies will be scaled

using financial incentives currently operating in Colombia, such as the Incentive for Rural

Capitalization (ICR). MADR is initially prioritizing rice, bananas, sugar cane, coffee, and

livestock. Nonetheless, the Colombian NDCs indicate that 10 crops will have improved

capabilities to adapt to climate change, and, indeed, the primary focus for the Colombian

agricultural sector is adaptation. Yet, if the linkages between adaptation and mitigation

activities are enhanced, the sector could also contribute to climate change mitigation and,

thus, reduce pressure on forests. For instance, promoting the adoption of sustainable

management practices as an adaptation measure may lead to a reduction of GHG emissions

caused by forest-cover change, fertilizer application, or flood irrigation techniques. In the case

of rice, for example, exploring options for water management (through cycles of flood and no

flood), so that the field is not permanently flooded, would reduce methane emissions. Another

option is to replace the rice cultivation in areas where there is water stress (or water stress is

expected)—in this way, the measure would constitute an adaptation measure that contributes

to climate change mitigation. Meanwhile, improved cattle pastures and silvopastoral systems

could contribute toward climate change mitigation, while reducing pressure on forests and

improving livelihoods.

25 https://www.forestcarbonpartnership.org/colombia 26 https://cgspace.cgiar.org/rest/bitstreams/60123/retrieve 27 A variety of sustainable agricultural practices already promoted in Colombia could contribute toward climate change

mitigation, if taken to landscape scale. Climate smart agriculture (CSA) is already practiced in Colombia. However, these

practices have a low adoption rate and are often implemented at non-significant scales (World Bank et al., 2015). This is in

part, because the absence of properly designed incentive packages (including technological packages, technical assistance,

and financial incentives, among other) constrain their adoption.

https://www.forestcarbonpartnership.org/colombia

https://cgspace.cgiar.org/rest/bitstreams/60123/retrieve


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Scaling up ongoing efforts to accomplish national environmental goals provides opportunities

to promote sustainable forestry and forest-smart investment. Specific opportunities arise from

the integration (and subsequent scaling) of climate change mitigation efforts to accomplish

the following goals: [i] the restoration of 1 million ha of degraded land within the 20x20 land

restoration initiative; [ii] the reduction of the area assigned to cattle pasture to 28 million ha

by the year 2019; [iii] the increase of forest plantations to 1 million ha by the year 2018

established in the “Colombia Siembra" plan; and [iv] the increase of forests plantations to 1.5

million ha proposed in the forestry development plan. Details on ongoing actions implemented

to accomplish these and other environmental goals will be provided below.

There is an opportunity to develop approaches for the simultaneous targeting of forest-based

climate change mitigation and peacebuilding.28 According to the Conflict Analysis Resource

Center (CERAC), about 76% of Colombia’s forest-cover is in municipalities experiencing

“intense,” “low-intensity,” or “intermittent” fighting since 2004.29 Aware of this important

correlation, the Colombian government has identified synergies between policies for

peacebuilding and policies for forest-carbon storage. The funds “Sustainable Colombia” and

“Colombia in Peace” were designed and are being implemented to help the country move

towards an environmentally sustainable post-conflict stage. Thus, there is a great opportunity

to contribute toward rural, low-carbon development in Colombia through transformative

interventions in forest frontiers, colonization fronts, and degraded landscapes—particularly

when considering that forest-carbon rich areas have been commonly influenced by armed-

conflicts (Figure 5).

Figure 5. Above ground carbon and armed-actions between 1990 and 2010.

Source: AGB maps developed by the Colombian Institute of Hydrology, Meteorology and Environmental Studies (IDEAM)

using Landsat satellite images (Phillips et al. 2011) and armed-conflicts data compiled by the Observatory for Human

Rights and International Humanitarian Law of the Vice Presidency of Colombia.

28 Ibid. 5 29 http://www.cerac.org.co/es/recursos/datosconflictoscolombia/

http://www.cerac.org.co/es/recursos/datosconflictoscolombia/


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Opportunities also emerge from the

potential integration of national funds

assigned to social and peacebuilding

programs with REDD+ results-based

financing. The Colombian government

assigns a significant amount of its annual

public budget to designing and

implementing policies, programs, plans,

and projects to achieve poverty reduction,

social inclusion, reconciliation, recovery of

territories, attention to vulnerable groups

and disabled people, and the reintegration

and compensation to victims of violence,

among other themes. Although potential

synergies have not been fully explored, the

inclusion of environmental considerations

in some of these efforts (e.g. the Forest

Ranger Families program) has resulted in

positive outcomes for the goal of climate

change mitigation. 30 This indicates a

potential for integrating environmental

considerations within social programs and

for making social programs’ budgets and

REDD+ results-based payments mutually

supportive. For this to happen, however, it

is necessary that priority areas for social

and peacebuilding programs coincide in

the territory with priority areas for forest-

based mitigation.

2.4. Opportunities for Promoting Sustainable Forestry and Forest Smart

Investments

Unsatisfied demand for primary processed wood products provides a great opportunity for

developing a sustainable commercial forestry sector in Colombia. By 2013, Colombian

industries demanded 5,5 million cubic meters of primary processed wood products, but 30%

of this demand was imported, mostly as wood boards and wood pulp (MDP, MDF). Moreover,

a recent study estimated a 70% increase in the demand of first transformation wood products

by 2030 (PROFOR, 2016). As such, if new industries are not established in Colombia, most of

this demand would be met through imports. The study also highlights that future stocks of

roundwood from Colombian plantations would not be sufficient to supply the demand (around

7 million cubic meters by 2030). Fortunately, Colombia has a reforestation potential of 18

million hectares with significant comparative advantages in terms of rotation of several

species used for timber—this is even without considering the advantages of non-timber

30 UNODC (2012) Contribución de los Programas Familias Guardabosques y Proyectos Productivos a la Mitigación del Cambio

Climático, Bogota-Colombia, p. 62.


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products and the environmental services generated by forests. Additionally, forest-cover

would contribute to the regulation of flow volumes that in turn improve water supplies,

particularly in mountainous areas such as the Andean zone.

2.5. Private Sector Engagement In the last decade, Colombia has signed free-trade agreements with seven trade blocks and

six countries. During the same period, bold measures have been taken to enhance investor

protections and ease tax burdens. The country has been recognized for several years as one

of the most aggressive reformers of laws and regulations affecting the private sector. This has

meant vast opportunities for the private sector and an appropriate investment climate for

national and foreign companies to compete in and establish new operations across all sectors

of the economy. Nonetheless, this influx of capital has also created a development gap

between urban and rural areas, reflected in a marked increase of inequality as measured by

the Gini coefficient (0.539 in 2013), which places Colombia as one of the most unequal

countries in the world and second in the region.31

The peace agreement seeks to bridge the urban-rural gap by creating economic opportunities

for the rural poor and to provide education, health, and public services to regions that still

lack development opportunities (the Amazon, Orinoquia, and Pacific regions are priorities).

World Bank/IFC interventions for deforestation-free and sustainable supply chains will be

relevant in the form of loans, equity, venture capital, guarantees, trade and supply chain

finance, and advisory services among others.

For example, the Ministry of Commerce has identified the promotion of the Bovine Meat sector

as an export priority as one of the Projects of National Economic Interests (PINE, for its

acronym in Spanish) and has, therefore, developed a Public-Private Partnership (PPP) to

increase bovine meat exports from US$93 million in 2016 to US$444 million in 2018.

Fourteen companies and two geographical clusters (the Coast/Antioquia and Santander) have

been identified. The IFC is evaluating the possibility of providing advisory services on climate-

smart livestock systems for small-holders that are part of the companies’ supply chains.

31 The World Bank, Colombia Systematic Country Diagnostic June 22, 2015


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3. National Policies & Plans Related to Forests

3.1. Country-Driven Plans & Strategies related to Forests

Building the foundations to achieve economic development with low deforestation and

sustainable peace is the main policy objective of the Colombian National Development Plan

2014–2018 (NDP). The NDP integrates national processes and proposes transformational

changes to achieve the equitable development of rural Colombia, all while giving priority to

peacebuilding in the areas most affected by the conflict.32 Specifically, the NDP proposes to

channel efforts through three transversal policy objectives: Colombia in Peace, Colombia

Equitable and Without Poverty, and Colombia Educated. To achieve these objectives, the NDP

proposes five lines of strategic action: [i] infrastructure and strategic competitiveness; [ii]

social mobility; [iii] rural transformation; [iv] security, justice, and democracy for peacebuilding

and good governance; and [vi] green growth. In relation to reducing emissions from

deforestation, the NDP set a goal for reducing deforestation by 2018 and asked the Ministry

of Environment and Sustainable Development to lead the design and implementation of the

National Policy to Halt Deforestation. The NDP also integrates the ENREDD+, the Low

Emissions Development Strategy, and other policies that would ideally contribute toward

climate change mitigation. The “Master Plan for the Orinoco Region” is among these

strategies and aims at enhancing economic and social growth in this region. Table 1

synthesizes national-level policy instruments proposed in the NDP that would have a positive

impact on forest-based emissions.

32 https://colaboracion.dnp.gov.co/cdt/prensa/bases%20plan%20nacional%20de%20desarrollo%202014-2018.pdf

https://colaboracion.dnp.gov.co/cdt/prensa/bases%20plan%20nacional%20de%20desarrollo%202014-2018.pdf


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Table 1. Synthesis of national-level policy instruments proposed in the NDP contributing to

reducing emissions from the forestry sector.

Policy

Instruments Overview

Low Carbon

Development

Strategy (LCDS)

The LCDS to strengthen Colombia’s economic and social development while

meeting global requirements of efficiency, competitiveness, and environmental

performance. The sectors participating in the strategy are Industry, Energy,

Mining, Transport, Housing, Waste, and Agriculture.

Strategy for the

transformation

of the rural

sector

It proposes: (1) reducing uncertainty over land tenure by creating the National

Land Authority; (2) updating the land registry system; (3) empowering local

authorities to formalize rural land; and (4) completing collective lands titling. In

addition, it proposes the removal of areas suitable for agriculture from ZRC as an

option for land restitution programs.

Green Growth

strategy

Colombia has taken concrete steps to address green growth. A milestone was the

process of accession to OECD because, in 2012, Colombia adhered to the OECD’s

Green Growth Declaration. This Declaration urges countries to encourage green

investment and sustainable management of natural resources through various

policy instruments aimed at creating a low-carbon economy. It also seeks to

promote policy reforms that avoid or remove environmentally harmful policies

that might thwart green growth. In response to this commitment, the Colombia

National Development Plan 2014-2018 (NDP) establishes Green Growth (GG) as

an overarching strategy to reach both peace and sustainable development.

Colombia in

peace (fund)

Colombia has created a parent fund that will match Government contributions to

foreign contributions towards peacebuilding projects. Once operational, the

“Colombia in Peace” Fund will fall under the responsibility of the High

Commissioner for Post-Conflict and will be a government-matching fund for

several other funds with distinct purposes (substitution of illicit crops,

construction of tertiary roads, structuring of agricultural production projects).33

The NDP set ambitious environmental goals that contribute toward both national development

priorities and climate change mitigation, such objectives include: [i] reducing annual

deforestation in Colombia to 90,000 hectares or less by 2018; [ii] achieving zero net

deforestation in the Colombian Amazon by 2020; [iii] bringing 210,000 new hectares under

restoration by 2018 and 700.000 more by 2020; and [iv] ending loss of natural forest by

2030. Additionally, the strategic plan for Colombian Livestock proposes actions to significantly

reduce the number hectares used for cattle pasture.

The Republic of Colombia is committed to reducing its greenhouse gas emissions because it

contributes to achieving many NDP’s goals. Colombia considers that “to develop and ensure

its peace, equity, and education objectives, and to sustain them in the long term, it is essential

to identify and utilize opportunities to increase competitiveness, productivity, and efficiency

following a low-carbon pathway in the different sectors of the national economy.”34 This

33 https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/3850.pdf

https://colaboracion.dnp.gov.co/CDT/Conpes/Econ%C3%B3micos/3850.pdf


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constitutes an opportunity to catalyze national and sub-national efforts through the planning

of an innovative, competitive and low-carbon economy.

Colombia is planning the implementation of actions to accomplish goals established in its

intended Nationally Determined Contribution (NDCs), which include an economy-wide target

equivalent to the 20% reduction with respect to the projected Business-as-Usual Scenario

(BAU) by 2030. It also states that subject to the provision of international support, Colombia

would increase its ambition from 20% to 30%, with respect to BAU, by 2030. Colombia’s NDCs

include the AFOLU sector (agriculture, forestry, and other land-use) in the economy-wide

target, which reaffirms its commitment to reducing deforestation in the country and to

preserving carbon-rich ecosystems such as the paramos (high mountain Andean ecosystems).

Among prioritized actions, the NDC lists: [i] delimitation and protection of Colombia’s

“paramo” areas (approximately 3 million hectares); [ii] increase of more than 2.5 million

hectares in coverage of newly protected areas in the National System of Protected Areas; [iii]

integration of climate change considerations in investment projects of national and strategic

interest (PINES); [iv] improvement of capabilities to adapt to climate change and climate

variability for rice, coffee, livestock, and silvopastoral systems.

3.2. Ongoing Efforts in the AFOLU Sector: Implementation of National Plans

Colombia is already pursuing transformations in the AFOLU sector. This is consistent with its

commitment to increasing efforts to promote the sustainable use of forests and address

deforestation drivers by transforming its cattle ranching sector, strengthening its command

and control actions, and combating illegal mining, illegal logging, and illegal crops in forestry

areas. To this end, Colombia is:

• Advancing the implementation of REDD+ readiness including the strengthening of

forest and carbon monitoring system and the development of the National REDD+

Strategy (ENAREDD+);

• Implementing the program “Vision Amazonia” with financial support from the REDD+

Early Movers’ programs. This program will contribute to achieving zero net

deforestation in the Colombian Amazon by 2020;

• Designing a program for the Orinoco Region with the support of the BioCarbon Fund

Initiative for Sustainable Forest Landscapes (ISFL).


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o The Government of Colombia sees that the Orinoquia region can offer major

opportunities, both at the economic and social level, but wants to make sure

that the development path that will be taken for this “new region” also responds

to environmental sustainability.

o This approach has been described in the CONPES 3797 (dated January 12,

2014) on “Policies for an Integral Development of Orinoquia: Altillanura.”

Building on the CONPES, the National Planning Department (DNP) has

launched the Orinoquia Masterplan for the inclusive and sustainable

development of the Orinoquia region.

• Designing and implementing 4 NAMAS in the agricultural sector: [i] the Forestry NAMA,

which will cover activities on restoration and reforestation; [ii] the Productive and

Technological Reconversion of Colombia's Panela Sector; [iii] the Sustainable Bovine

Livestock; and [iv] the Sustainable Coffee Production.

• Fighting illegal logging through: [i] the implementation of the “Strategy for the

Prevention and Control of Illegal Wildlife Trafficking”; [ii] the implementation of an

agreement for the legality of the wood value chain, in which 71 institutions are

committed to supply and buy legally harvested wood; and [iii] actively participating in

The EU's Forest Law Enforcement, Governance, and Trade initiative (FLEGT). Among

achievements from efforts for fighting illegal logging, we highlight the 273,000 m3 of

wood confiscated between 2012 and 2014.35

• Restoring about 85.600 ha.

35 http://www.eltiempo.com/colombia/otras-ciudades/tala-de-arboles-ilegal-en-colombia/15589478

http://www.eltiempo.com/colombia/otras-ciudades/tala-de-arboles-ilegal-en-colombia/15589478


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4. The World Bank’s Engagement: Promoting a Forest- and Land-

Use Smart Development Approach

The WBG supports Colombia’s very ambitious climate change, forest protection, and

agricultural development goals through a growing portfolio of programs that complement and

reinforce each other. Therefore, the World Bank in Colombia develops and supports a

significant land and forest-related program, with interventions that promote climate resilience,

low-carbon, inclusive growth, and environmental sustainability.

The World Bank recognizes the importance of sustainable natural resource management for

Colombia’s economy and its ongoing efforts to consolidate peace. The 2015 Systematic

Country Diagnostic (SCD) highlighted the fact that costs of environmental degradation are

significant and that there is a need for critical investments in improved forest, land,

watershed, and natural resource management in post-conflict areas that are increasingly

opening up.36

The World Bank supports the 2014-2018 National Development Plan, which places a strong

emphasis on rural development and highlights the need for resolving land rights for IDPs,

indigenous and afro-descendent communities; promoting higher value-added agriculture,

livestock, and forestry production; improving the regulation of oil and mining sector

operations; and protecting globally important primary forests (for both biodiversity and carbon

sequestration purposes) with the financial assistance of the international community.

The land-use agenda in Colombia is also well aligned with the World Bank Group Colombia

Country Partnership Framework (CPF) FY2016-2021. The framework supports the

Government’s medium-term agenda towards a more integrated territorial development

approach. In particular, Pillar 1 of the CPF aims at balanced territorial development and the

need for enhanced capacity for natural resource management in target regions. By piloting

two large forest programs in two strategic regions (Amazon, Orinoquia) and by supporting the

36 The Colombia Systemic Country Diagnostics (2015) estimates that cost of environmental degradation was US$ 7 billion

in 2010, including the cost of air pollution, net forest depletion, GHG emissions from land use, GHG emissions from fossil

fuels and lack of improved water and sanitation. The SCD also note that a large negative component of Colombia’s Change

in total Wealth Per Capita (CWPC) is its depletion of natural capital.


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Government’s Plan “Todos Somos PAZcífico” (Pacific Region), the land-use program in

Colombia also supports the CPFs cross-cutting theme of constructing peace.

The World Bank’s land-use program in Colombia promotes the adoption of the programmatic

approach to forests, as outlined in the World Bank Forest Action Plan 2016. As such, the

ongoing cross-Global Practice land-use programs in Colombia use various World Bank

instruments, such as technical assistance, investment financing grants and loans,

development policy operations and analytic and sector work (ASA) to promote climate-smart

agriculture, critical land administration reform, policy advice, and governance support. Thus,

the World Bank’s land-use program in Colombia includes programs in two critical areas of

intervention: [i] Sustainable Forestry and Land-Use Smart Interventions, and [ii] Policy Support

and Analytical Work.

Table 2. World Bank land-use, land administration & forestry related programs in Colombia.

Type Operation Amount (US$) Source GP

ASA Potential for Commercial Plantations in

Colombia (BE) 0.4 million PROFOR ENR

TA Preparation of the OSIL Program (BE) 1.5 million BioCF ENR/AG/CC

TA Readiness to REDD+ (RE) 3.6 million FCPF ENR/CC

TA Post-Conflict TA (RE) 6.2 million MDTF SURR

TA Multi-Purpose Cadaster TA (BE) 0.3 million MDTF SURR

Investment

(UK) Sustainable Cattle Ranching Operation 20.7 million

UK-DECC/

GEF AG

Investment Heart of the Amazon Program 10.4 million GEF ENR

Investment The Amazon Signature Program (ASP) –

Regional: Colombia, Peru, Brazil 113 million GEF ENR

Investment Multi-purpose Cadaster Operation 100 million IBRD SURR

Investment Subnational Institutional Strengthening

Project (including cadaster pilots) 70 million IBRD GGP

Policy Territorial Development DPL 800 million IBRD GGP

Policy Green Growth DPL 800 million IBRD ENR

ASA

Wealth Accounting and Valuation of

Ecosystem Services Partnership

(WAVES)

1.6 million WAVES ENR

Emission

Reduction OSIL ER Program 50 million BioCF ENR/AG/CC


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4.1 Sustainable Forestry and Land-Use Smart Interventions

Sustainable Forest Management in the Amazon: The

GEF Heart of the Amazon program’s objective is the

improvement of forest governance and sustainable

land-use activities to reduce deforestation and

conserve biodiversity in close to nine million hectares

in the Caquetá and Guaviare departments of

Colombia’s Amazon region. The program supports

improved National Park System governance and

promotes sustainable land-use practices. For

example, it provides a framework for signing sectoral

agreements based on environmental conservation

standards, as well as improved management

practices in [i] oil and gas exploration and

exploitation, [ii] infrastructure improvements, and

[iii] agriculture and cattle ranching activities. It

contributes to Colombia’s Amazon Vision and its

zero-net deforestation goal for the Amazon by 2020.

Cross-boundary sustainable forest management in

the Amazon basin: The Amazon Signature Program

(ASP) will initially involve Brazil, Colombia, and Peru,

which together cover approximately 80% of the

surface area of the Amazon. The program will extend

GEF’s support to the sustainable management of the

Amazon basin through targeted interventions at the

national and regional level, securing its full potential

to generate global environmental benefits in the GEF

focal areas of biodiversity, climate change,

international waters, and chemicals. The Program

will implement sustainable development options,

including opportunities in the forest-sector, that can

help reduce poverty and stabilize the agricultural

frontier.

Promote Forest Smart and Climate Smart Agriculture in the Orinoquia region: Through

technical assistance and results-based payments, the BioCarbon Fund Orinoquia Sustainable

Integrated Landscape Program (OSILP) program will promote an economically-profitable,

socially-equitable, and environmentally-friendly development model in the Orinoquia region.

The program will develop an investment pipeline for scalable sustainable practices and

technologies in the Orinoquia region and incentivize those investments (for example, through

the participation of the IFC). This includes productive systems that, among others: [i] do not

depend on deforestation or displacement of high carbon or High Conservation Value Areas

(HCVA), [ii] increase HCVA within the production systems that are legally protected and under

conservation management, [iii] increase productivity and income at the local level, [iii] include

suitable productive species for the climate and soil conditions of the Orinoquia region, [iv]


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improve traceability and promote environmental goals along the supply chain.37 Some on the

ground activities to pilot sustainable production systems will be covered by the program

funding.

Sustainable Livestock Practices: The Mainstreaming Sustainable Cattle Ranching Project is

the country’s reference for sustainable practice in livestock production systems. The project’s

main contributions are aligned with building country capacities to scale-up investments in

sustainable livestock systems (silvopastoral systems, SPS) in Colombia via training of

technical staff in five geographical regions; strengthening service provision; and developing

technological packages appropriate to the different geographical regions. The project is also

contributing to expanding financial support to SPS, and to mainstreaming SPS systems into

Policy frameworks and policy prioritization, and it is currently supporting the implementation

of the Livestock NAMA. The project serves as a laboratory for innovation and knowledge

generation, with a strong research component to better understand the impacts of the

silvopastoral systems on biodiversity conservation, reduced deforestation, GHG emission

reduction, and livestock productivity gains. A total of 2,491 farms are participating in the

project covering 113,707 hectares. The project is implemented by a consortium led by

Fedegan (The National Livestock Federation) and integrated by the Nature Conservation

(TNC), CIPAV Foundation, and Fondo Acción.

Supporting land-use plans, land-cadaster,

registry, and land formalization pilots: The

Institutional Subnational Strengthening

Project and Technical Assistance Support to

Colombia for the Cadaster Reform support the

first phase for the implementation of

Colombia’s multipurpose cadaster, which

aims to pilot projects to test the proposed

methodologies, technical specifications, and

procedures as well as assess the costs of this

approach. The objective of the pilot phase is

to inform the detailed implementation

arrangements that will be rolled out

throughout the country between 2017 and

2025. The key aspects to be tested through

the pilots are: [i] surveying methodology and

standards, [ii] land formalization, [iii]

implementation mechanisms (with significant

private sector participation), [iv] available

information and variables (including

environmental and climate change variables)

to be included in order to define the exact information layers, and [v] costs and identification

of efficiency measures that could be adopted during the pilot scale-up phase. The project also

finances Territorial Land-Use Plans (POTs) in 61 municipalities.

37 High Conservation Value Area (HCVA) refers to natural areas with environmental, socioeconomic, biodiversity or landscape

value, as used within forestry management certification schemes, for example the Forest Stewardship Council (FSC), which

introduced the concept in 1999.


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Support to progressive scaling-up of Multi-Purpose Cadaster (2017-2023): After the Pilot

Phase, a plan for the progressive scaling-up of the Multi-Purpose Cadaster and formalization

of property rights will be drafted with the goal of covering the entire territory of Colombia by

2023. Once the pilots have been implemented in 2016 (Phase 1), the progressive scaling-up

of the project will commence (Phase 2). As part of this phase, a timeline for the progressive

scaling-up will be devised by region, with the first target being the completion of the multi-

purpose cadaster in 25% of Colombia’s territory by 2018. In the scaling-up phase, priority will

be given to rural municipalities that have been highly affected by conflict, and those that are

part of strategic plans of the national government. As part of progressive scaling-up, it is

expected that the entire territory will be covered between 2019 and 2023, including both

urban and rural areas. For this scaling up, the GOC has requested an IBRD investment project

in the order of US$100 million.

Support to more balanced territorial development in the Pacific Region: The GoC developed

and adopted the regional, US$1.2 billion development plan, Todos Somos PAZcífico (PTSP),

to operationalize the priorities of the NDP 2014-2018 for the Pacific Region. Components of

the plan include improving water and sanitation services, expanding access to electric energy,

and reducing travel and transport costs and time. The World Bank will support the

implementation of the plan with two projects which are currently under preparation. The Water

Supply and Basin Sanitation Infrastructure Development Project (US$ 133.5 million) will

improve coverage and service quality for over 140,000 beneficiaries in the Municipalities of

Guapi and Tumaco. The Acuapista project (US$ 41.3 million) will improve the waterway

connectivity along the Tumaco–Guapi corridor. The World Bank further supports the GoC in

exploring the possibility of an Emissions Reduction Program for REDD+ prioritizing the Pacific

Region.


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4.2. Policy Support and Analytical Work Foster Territorial Development through improved land administration systems and

institutions: The First Programmatic Territorial Development Policy Loan supports the

Government of Colombia’s (GoC) move towards integrated territorial development through: [i]

strengthened land management systems and institutions and improved territorial planning

(this includes inventories for cadastral information, administrative agreements to delegate

cadastral functions to local governments, formalization of property rights, territorial land-use

plans); and [ii] improved fiscal information, investment prioritization, and strengthened

financial management of subnational expenditures (this includes connection of municipalities

to the Integrated Transactional Financial Territorial Information System and the design of

standard investment projects).

In-depth review and policy recommendations for the commercial forestry sector: The

PROFOR analytical study is performing an in-depth review of Colombia’s commercial forestry

sector to make specific policy recommendations on institutional and regulatory reforms

needed for this sector to become competitive and a source of economic development,

especially in rural areas. The study formulates recommendations for developing the potential

of commercial forest plantations in three regions of the country.

Support to Colombia’s Green Growth Mission: The WBG provides supports to the GoC’s vision

for a Green Growth Policy for the next 15-20 years (Misión Crecimiento Verde). In 2012,

Colombia adhered to the OECD’s Green Growth Declaration. This Declaration urges countries

to encourage green investment and sustainable management of natural resources through


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various policy instruments aimed at a low-carbon economy. It also seeks to promote policy

reforms with the aim of avoiding or removing environmentally harmful policies that might

thwart green growth. Colombia is proactively prioritizing low-carbon growth resilience and

environmentally sustainable development principles in its planning and green growth strategy.

Thus, the mission will emphasize the sustainable management of its immensely rich natural

capital (mainly non-renewable oil and mining, but also land, water, biodiversity, and forests).

WBG support to GoC’s green growth strategy will be adjusted to the specifics of the different

regions and include a rich program of policy support, investment and knowledge activities. At

the national level, a programmatic DPF series (first phase approved in November 2015 and

second phase under preparation) is promoting policy and institutional actions to support

various dimensions of green growth, including renewable energy, sustainable transport,

environmental health, and disaster risk management, among others. On the analytical side,

the WBG has designed the Green Growth and Sustainable Development Programmatic

Approach, a series of analytical work covering inputs to the Green Growth Strategy, a

continuation of Wealth Accounting and Valuation of Ecosystem Services (WAVES), analytical

studies on low-carbon agricultural growth in the Orinoquia region, and scoping work for the

Pacific region.

Support the development of an MRV system and Colombia’s National REDD+ Strategy

(ENAREDD+): Through the FCPF Readiness Grant and the BioCF Plus Grant the WBG is

deploying technical assistance to strengthen the Measurement, Reporting, and Verification

(MRV) of emission reductions from REDD+ and sustainable agricultural practices. This

includes developing an AFOLU reference level, helping implement the national forest

inventory, and strengthening capacities to monitor forest-cover changes, forest degradation

and land-use changes, in addition to the forest to non-forest. It also supports the preparation

of a national strategy to reduce deforestation and forest degradation.


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5. Government Coordination Mechanism

Colombia has made important steps in the

coordination of national climate change

action. However, due to the proliferation of

climate change, environment, sustainability,

and peacebuilding related plans and

initiatives, effective coordination of land-use

related climate finance remains an

important challenge in Colombia.

Financial and technical support to the

climate and land-use agenda is significant in

Colombia. Some of the main sources include

the World Bank, the IDB through its support

to the initiative Colombia Sostenible, the

GEF, the Global Green Growth Institute

(GGGI), UN-REDD, and the European Union.

Bilateral support, moreover, is provided by

USAID, German International Cooperation,

GIZ; German Federal Environment Ministry,

BMU; German Development Bank: KfW); the

United Kingdom; Norway; the French Agency

for Cooperation (AFD); and USAID.

One of the existing coordination mechanisms is the Financial Management Committee under

the National Climate Change System, SISCLIMA, which brings together national stakeholders

working on climate change that have previously been spread widely and with few inter-

linkages.38 SISCLIMA, created by decree in April 2016, is to become the official national

institution to coordinate and propel climate change actions. Within these actions, SISCLIMA

will coordinate the implementation of the four climate change priority strategies, the Climate

Change National Adaptation Plan (CCNAP), the Colombian Low Carbon Development Strategy

(CLCDS), the National Strategy to Reduce Deforestation and Forest Degradation (ENAREDD+),

and the Intended Nationally Determined Contributions (NDC).

Another coordination mechanism is supposed to emerge under the IDB-administered initiative

Sustainable Colombia (Colombia Sostenible), with follows a systemic approach to addressing

rural development, climate change, environmental sustainability, and social inequality in

areas affected by armed conflict. The initiative will create a High-level Advisory Group (to be

defined), to provide strategic advice and recommendations regarding the mobilization of

international financing.

Currently neither mechanism has begun to ensure coordination and active collaboration with

all other REDD+ relevant initiatives, including the Forest Carbon Partnership Facility, the

38 High Conservation Value Area (HCVA) refers to natural areas with environmental, socioeconomic, biodiversity or landscape

value, as used within forestry management certification schemes, for example the Forest Stewardship Council (FSC), which

introduced the concept in 1999.


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United Nations collaborative initiative on Reducing Emissions from Deforestation and Forest

Degradation (REDD+) in developing countries (UN-REDD), the BioCarbon Fund, the REDD+

Early Movers initiative (REM), and other bilateral and multilateral REDD+ relevant initiatives

taking place in Colombia. Rather, coordination remains focused on each of the above-

mentioned initiatives, with each having different implementation and coordination

arrangements. This leads to the duplication of efforts, where problems and bottlenecks are

addressed in similar ways in each initiative alone, without taking advantage of existing

synergies among all of them (i.e. land-use planning, sustainable supply chain analyses,

identification of low-carbon agricultural practices, adjustment of financial incentives, etc.).

Colombia plans on establishing a National Financial Instrument that can receive and channel

contributions for land-use smart policies, on the ground investments, and verified emission

reductions, including a coordination committee with balanced representation from central

government, regional governments, civil society (including the private sector), and indigenous

peoples in the governance structure of the funding instrument. However, such a mechanism

needs more support to be promoted and further analysis in terms of effective design and

structure. GGGI and the World Bank could partner on this to support Colombia to structure

such mechanism, based on the Indonesia and Ethiopia experiences.


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6. Conclusions

It is the right time to promote sustainable land-use and forest management in Colombia, since

the country is at a turning point. In the post-conflict context, finance from countries is

important to support the Government in building a lasting and sustainable peace while also

providing economic opportunities in rural areas. It is important to ensure that these are

connected to environmental objectives, and not just designed for primarily economic reasons.

The World Bank Group has a large program in the land-use sector that combines on-the-

ground interventions for forest conservation with local social impact programs for

communities and land-users, as well as with policy support and advice. This program can be

scaled up to address additional areas for a successful forest and landscape climate-smart

program. Additional resources can be channeled through existing instruments that allow

channeling technical assistance, investment funding, and payments for results, such as the

BioCarbon Fund or the FCPF. The added value of the GNU-World Bank partnership will be to

join forces, take on specific asks in line with each partner’s comparative advantages, and

maintain a productive dialogue about the shared vision of supporting Colombia in meeting its

ambitious targets in the land-use and forestry sector.

Important opportunities and asks for donor support identified in this note include:

1. The multi-purpose cadaster is part upfront investments, as it will lead to the

formalization of land tenure. This is an operation that requires significant financing—

the effort to implement this nation-wide will cost around US$1 billion, of which

Colombia has secured US$250 million through WB and IDB support. More resources

will be needed, and there is a need to help the GoC include more environmental

objectives in the multi-purpose cadaster and to accelerate its implementation,

especially in areas with high deforestation and land-use pressure.

2. In addition to the Amazon and Orinoquia, the Pacific region is a priority region for the

Government of Colombia as well as for the World Bank’s CPF. There is a need for

additional resources to support Vision Pacifico, ideally through the inclusion of the

program into BioCF ISFL or FCPF pipelines, and to explore other options to rapidly

deploy initial grants to set up a team to structure the program.


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3. The support for the creation of a National Financial Mechanism to channel

contributions for land-use smart policies, on-the-ground investments, and verified

emission reductions, including a coordination committee with balanced representation

from the central government, regional governments, civil society (including the private

sector), and indigenous peoples. However, such a mechanism needs more support to

be promoted, and further analysis in terms of effective design and structure. It is

important that donors keep pushing for this. The World Bank can provide technical

support, based on the Indonesia and Ethiopia experiences.

4. Explore the scaling-up of sustainable livestock systems through additional funding

(GCF) that builds on the World Bank’s Sustainable Cattle Ranching project and by

promoting a large public-private partnership for bovine meat exports in partnership

with the IFC.

5. Prioritize Colombia for investment funding that allows filling critical gaps to achieve

ERs. For example, Colombia should be reconsidered under the Forest Investment

Program (FIP).


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