Colombia’s GDP has grown at an annual average rate of 3.6% over the past two decades, with a corresponding increase in greenhouse gas (GHG) emissions. Although the overall energy intensity of Colombia’s economy has decreased, certain sectors are still inefficient users of energy. The transport sector accounts for 39% of Colombia’s total energy demand, compared to a world average of 31%.
Clean Transport, Energy Efficiency Offer Untapped, Transformative Potential
A boom in private motorized transport and decline in public transport ridership are increasing energy use and GHG emissions, which are both expected to increase by 80% by 2030, the fastest growth of any sector in Colombia. The number of motor vehicles in Colombia tripled between 1994 and 2009, making the transport sector the fastest growing source of energy consumption in the country. The energy efficiency sector also plays a crucial role in Colombia’s energy mix due to its substantial yet untapped potential to generate energy and cost savings.
tons of CO2 emissions equivalent per year expected to be avoided in Colombia due to proposed CTF investments in low-carbon transportation
To capture the potential for accelerating economic development while reducing GHG emissions in line with its national development strategies, Colombia developed an investment plan, which was endorsed in March 2010 and revised in May 2013, that will tap US$ 150 million in financing from the CIF's Clean Technology Fund (CTF) for a range of urban transport and energy efficiency projects, as well as renewable energy. Specifically, Colombia will use CTF financing to improve and expand public transport infrastructure and service in Bogotá and seven other Colombian metropolitan areas, as well as accelerate public and private sector engagement in the energy efficiency sector. The transport sector offers the highest mitigation potential at the lowest costs with high replicability, and has a successful track record in the country. CTF funding will enable and accelerate the 'greening' of urban transport.
Meanwhile, the energy efficiency sector is the most cost-effective way to meet growing electricity demand through a clean electricity matrix and help address a high carbon growth path associated with climate change and recurring droughts in the country's municipalities and rising sea levels and flooding in its coastal areas. This has also put agricultural lands at risk to desertification and higher sea levels in various regions. The investment plan was designed in coordination with the Inter-American Development Bank (IDB), members of the World Bank Group (IBRD, IFC), and key Colombian stakeholders. Together, CTF financed projects are expected to mobilize an additional US$ 1.103 billion in additional public and private co-financing.