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Enabling Conditions for Bioenergy Finance and Investment in Colombia

image of Enabling Conditions for Bioenergy Finance and Investment in Colombia

To realise Colombia’s clean energy ambitions and enable the necessary mobilisation of finance and investment, the government has set forth a number of important policy strategies, including the 2018 Green Growth Policy, the 2019 National Circular Economy Strategy and the forthcoming 2022 Energy Transition Policy. These high-level policies all note the role clean energy solutions like sustainable bioenergy and waste-to-energy can play in supporting decarbonisation objectives. These solutions can also achieve a number of other socioeconomic ambitions, including improved reliability of energy supply, improved access to affordable and reliable energy in areas that are not connected to the national electricity grid, and reduced amounts of waste going to capacity-limited landfills. This report aims to support Colombia’s renewable energy ambitions, focusing on current clean energy trends, opportunities for bioenergy and measures that can increase finance and investment in those solutions. Through five case studies from Brazil, Chile, Colombia, India and Turkey, the report also considers the enabling environment and lessons learnt from bioenergy developments in different countries.

English Also available in: Spanish

Improved competition, innovation and finance for bioenergy development

Colombia has implemented a number of measures to increase the attractiveness of the country’s investment environment, which has enabled increasing levels of private capital to be mobilised for renewable energy developments in recent years. Yet, investment in bioenergy projects, which struggle to compete with fossil fuels and the diminishing costs of solar and wind, remains limited. This is compounded by limited local technical expertise to implement projects and perceptions of risks by financial actors regarding bioenergy technologies and the stability of revenue streams from these additions. Addressing these issues requires efforts to increase awareness and familiarity with bioenergy solutions whilst improving overall access to finance, for instance by extending public support and development funds to de-risking tools for bioenergy projects. Use of capital market instruments like green bond issuance can also help to unlock affordable finance for bioenergy projects and to increase the investor base for clean energy solutions in Colombia.

English Also available in: Spanish

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