The objective of the Biodiversity bonus is to mobilize resources towards projects that generate a positive impact on nature
News Cop16.
A biodiversity bonus is the announcement this Monday, October 28, from the blue zone of COP16. On the Financing and Implementation Mechanisms Day, the National Government, together with the private sector, has launched this bond for a total of 50 million dollars, which is equivalent to about 215,000 million pesos.
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The Minister of Environment and Sustainable Development, Susana Muhamad, highlighted the importance of this bond, describing it as a milestone in financing for the recovery of the nature.
The cost of this bond is 50 million dollars, which is equivalent to about 215,000 million pesos. This initiative was formalized through the signing of an agreement between Banco Davivienda and the International Financial Corporation (IFC), positioning Colombia as a pioneer in this area worldwide.
“This bond has three key characteristics: first, it finances strategic sectors identified by the Government; second, it shows that nature recovery can be profitable; and third, it aligns with Colombia’s Climate and Socioecological Transition Portfolio,” explained Muhamad.
In line with the green taxonomy, the Minister of Finance, Ricardo Bonilla, stressed that this bond is essential to establish a clear framework on what “green” really means in the financial context. “Developing this type of bonds will allow us to obtain more favorable financial conditions for specific projects,” he stated.
An Instrument for Conservation
The objective of the bond is to mobilize resources towards projects that generate a positive impact on nature, aligning with Colombia’s Biodiversity Action Plan for 2030.
Approved by the Financial Superintendency of Colombia, this financial instrument seeks to address the growing loss of biodiversity in the country and strengthen the capital market in this area.
Javier Suárez Esparragoza, president of Davivienda, mentioned that the bond will allow financing projects that promote reforestation and the protection of native species, in addition to seeking that at least 10% of the resources be allocated to the restoration of mangroves in the Pacific. “Our commitment is to contribute to the well-being of local communities and the conservation of sensitive ecosystems,” he said.
Sustainable projects for the future
The bond, with a term of four years, will focus on the conservation and sustainable management of forests, restoration of degraded soils, wastewater treatment and wetland conservation.
Alfonso García Mora, vice president of IFC, highlighted the collaboration between IFC and Davivienda, stating that this bond will facilitate access to financing for crucial initiatives for the conservation and restoration of biodiversity in Colombia.
Finally, Minister Muhamad reiterated the need for public-private work models that promote a transformation towards sustainability in a context of environmental emergency. “With this bonus, we begin to give meaning to Colombia’s biodiversity, fundamental for the well-being of our population,” he concluded.
With this innovative initiative, Colombia not only seeks to protect its biodiversity, but also to establish a global precedent in the use of financial mechanisms for environmental sustainability.
