“In the context of the upcoming COP16, we hope that our strategy can highlight the importance and
success of partnerships in Colombia to improve conservation and provide socio-economic viable solutions.”
“Now begins the journey to the COP16” said Susana Muhammad, Colombian Minister of Environment and Sustainable Development, announcing that the annual summit would be taking place this October in Cali, Colombia.
The global summit, Biodiversity Conference of Parties (COP16), takes place every two years to talk about biodiversity, such as addressing the causes of biodiversity loss and safeguarding ecosystems.
This year’s COP16 will focus on implementing a new 10-year Global Biodiversity Framework gearing humanity towards a “nature positive future.” The Framework, which was adopted during COP15 in 2022, sets a clear roadmap to halt and reverse biodiversity decline by 2030. A key highlight is its commitment to protect 30% of the planet’s land and marine areas by 2030 through 23 action- oriented global targets to address the drivers of biodiversity loss.
This new framework offers an opportunity for dialogue and negotiation, particularly for Colombia and Latin America to position themselves as leaders in providing alternative and environmentally viable
solutions. A lot has changed since the Paris Agreement, and hosting COP16 will not only be symbolic but strategic for Colombia.
While Colombia is one of the most biodiverse countries in the world, little is publicly known about the country’s current initiatives and future projects that are paving the way towards a more sustainable country, and future.
LOOKINGAHEADINCOLOMBIA
In recent years, the government and its partners in both the public and private sectors are harnessing Colombia’s potential to build a bioeconomy, or activities based on the sustainable use of biological resources, that alleviates poverty while preserving nature and supporting inclusive growth.
However, this will be difficult to achieve without strong public-private partnerships.
“The private sector is key in mobilising expertise, investment, and finance, while the public sector pushes for climate adaptation and mitigation policies, as well as creates an environment that fosters investment and innovation in the
infrastructure, agriculture, and technology sectors,” explains Palladium’s Luis Rios. The reality is that across Colombia, partnerships and multistakeholder cooperation are already implementing nature-based solutions to address complex sustainability issues. So far, many of these have proven to be widely successful.
“Palladium’s teams are no stranger to these types of partnerships,” says
Rios. “In fact, since 2018, we’ve worked alongside partners in Colombia across the sustainability space on projects that have not only increased public-private partnerships but have focused on inclusive growth for green value chains.”
HABITATBANKS
Through Partnerships for Forests, Palladium supported the growth of habitat banks and biodiversity credits through Terrasos in Colombia.
As a novel mechanism of environmental compensation, habitat banks are areas of land managed to restore or conserve biodiversity and therefore deliver a cost-
effective alternative for private conservation and restoration sites. Each hectare generates one biodiversity credit that
can be sold to project developers in the infrastructure, mining, oil, and gas projects – with required investments in conservation.
Since piloting the first habitat bank, Terrasos has sold more than £1 million worth of biodiversity credits. Using support from Partnerships for Forests, the company aims to scale the model to leverage an additional £8.5 million to protect 5000 hectares of endangered ecosystems.
Beyond habitat banks and across its six years of implementation, Partnerships for Forests’ work in Colombia mobilised over
£8.7 million and brought 98k hectares of forest under improved management, from the Pacific Rainforest to the Amazon and Andean ecosystems.
INCLUSIVEFINANCE
Bamboo Capital Partners, the asset management arm of Palladium’s impact investing work, is actively supporting around 24,000 small-scale farmers through financial intermediaries across multiple areas in Colombia such as Valle del Cauca, Cauca, Nariño, Huila, and Antioquia.
Bamboo’s mission is to create lasting social impact through sustainable investments.
“It’s clear that a market systems approach works to deliver growth to the bioeconomy sector
in countries that have tropical forests.”
By investing in microfinance institutions, Bamboo is driving financial inclusion for these farmers, helping them expand their businesses and sustain their livelihoods. These investments extend beyond financial services; they also provide technical assistance focused on teaching sustainable agricultural practices that help preserve the land and environment.
Additionally, some farmers benefit from parametric insurance, designed to help small-scale farmers navigate the risks posed by climate change.
SUSTAINABLEAGRICULTURE
In 2023, Palladium teams began work implementing USAID’s Colombia Sustainable Agriculture Activity. Since launching, the team has established 11 alliances in the cocoa, coffee, red onion, dairy, açai and rubber value chains. These alliances represent a total of 3,851 producers, 8,951 hectares, US$11.8 million in investment, and
$10.2 million in incremental sales projected over a course of four years.
Under this activity, Palladium works in regions prioritised by the Government of Colombia within the framework of the 2016 Peace Agreement,” explains Rios.
“These regions are considered biodiversity hotspots but have high instances of armed conflict and illegal crops.”
The team’s innovative approach in the Colombian agricultural space focuses on a market systems development that is inclusive, growth inducing, and environmentally conscious.
Part of the market systems strategy is integrating Climate Smart Agriculture practices in rural Colombia, while working closely with rural youth, women and vulnerable populations to ensure sustainability in the long run for the Colombian campesinado.
REDUCINGEMISSIONS
Through UK PACT, funded by the UK government, Palladium is supporting the sustainable use of biodiversity while accelerating emissions reductions and green growth across Colombia. UK
PACT has significantly contributed to the development of the bioeconomy sector and the strengthening of zero-deforestation and non-timber forest products value chains
by advancing agroecology, climate-smart agriculture, traceability capacity, market access, and product competitiveness.
This includes the funding and launch of MAPBIO, a bioeconomy business
accelerator mechanism developed by the Global Green Growth Institute, and fully endorsed by the Ministry of Science.
Through three rounds of calls for proposals, 13 bio-businesses that support the conservation of key ecosystems,
such as the Amazon and the Pacific, have received tailored assistance to advance their ventures to a commercial stage.
Additionally, six technical capacity-building programs have been developed, equipping young Colombians with essential skills
in energy efficiency, bioeconomy, and reforestation.