IDFC and CAF launch the NUCA Program in Colombia: the country's conditions are favorable to support the development of low-carbon and climate-resilient urban infrastructure

The main objective of the program, funded by the International Climate Initiative (IKI), is to support the National Development Banks of Brazil, Colombia, Indonesia, Mozambique and South Africa in strengthening their institutional capacity for urban climate finance and advice, as well as for mobilizing new resources from local and international private and public sources. 

Following the launch of the program in South Africa, Colombia is the second country to give the green light to the National Urban Climate Action Program for National Development Banks (NUCA). The launch event took place during the morning of Thursday, May 16, 2024, at the Radisson Metrotel Hotel in Bogota, bringing together key players from the public, private, financial and climate sectors in Colombia.

The event was attended by more than fifty representatives of the national government, national and international financial institutions and departmental and municipal governments of Colombia. During the event, the objectives of the program were addressed, and the challenges and opportunities of urban climate finance in the country were discussed, among others.

Javier Diaz Fajardo, President of Bancóldex and co-chair of the IDFC, opened the event by pointing out the need to mobilize greater resources and new approaches to close the climate finance gap in Colombia. In this regard, he highlighted the relevance of the NUCA Program within the framework of the IDFC, which, through international financing, promotes coordinated action among regulators, financiers and implementers to contribute, through urban climate finance, to the fight against climate change in Colombia.

This was followed by a panel on the challenges and opportunities of urban climate finance in Colombia, which highlighted the need to explore new sources of revenue and new financing schemes to enhance the climate ambitions of local governments in Colombia. The panelists also highlighted the importance of strengthening the structuring phase of this type of projects and creating a culture of structuring in the country, involving for example the beneficiary communities and technical and financial entities from the early stages of preparation of urban infrastructure projects.

The meeting was also an opportunity to present the objectives, timeline and initial guidelines for the implementation of the NUCA program, as well as to preliminarily identify the key actors and synergies necessary for its successful implementation. The valuable exchanges gathered will be inputs for the development of the Program's implementation plan in Colombia, which is scheduled to start in early 2025.

In this context, the event marks a significant step towards the consolidation of efforts and resources to address urban climate challenges in Colombia, promoting sustainable and resilient development in the country's cities.