Regulation & Policy Nov 2, 2021 5:16 PM
The government is moving forward in creating a framework for financing sustainable growth in the future: the green taxonomy.
A report in Portafolio said that the taxonomy is a classification system that seeks to identify which economic activities and investments have substantial contributions to the achievement of environmental goals.
“The green taxonomy seeks to collect activities that meet criteria aimed at achieving environmental goals for the country,” Jesús Antonio Bejarano, Technical Vice Minister of Finance, said.
Bejarano said that the green taxonomy will allow identifying what activities the government does that meet those environmental goals, and from there classify them.
“This allows us to tell investors who are going to finance certain projects which ones are green and guarantee that those investments will really go to finance projects that comply with environmental commitments,” Bejarano said.
The taxonomy considers the country’s environmental commitments and policies in four major goals: environmental, biodiversity, water resource management and risk management.
“Making a taxonomy is an ambitious process, but the main bet for now is on climate change,” the Vice Minister said.
The taxonomy becomes an element of the roadmap for green investments, within the Paris Agreement.
“Our commitment as a government is to use those investments in green activities, and that is determined precisely with the taxonomy,” Bejarano said.
This mechanism goes beyond attracting investments, as it allows the government to go to multilateral banks and obtain financing for specific green projects.
Bottom-Line: It is important to advance in these new mechanisms that will drive the country’s energy transformation with green investments.