Equitable and Green Path Development Policy Financing

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The development objective of the Equitable and Green Path Development Policy Financing for Colombia is to support measures that promote: (i) more equitable and green fiscal policies, (ii) productive and social inclusion for vulnerable groups, and (iii) inclusive and green private sector development. The first pillar focuses on fiscal policy measures that, in the program’s first phase, increase revenue and, at the same time, increase the progressivity of income taxation and expand and introduce taxes that promote decarbonization and healthier lifestyles without compromising the efficiency of the tax system. The second pillar promotes productive and social inclusion of vulnerable groups to reduce gaps in access to opportunities by promoting their access to assets (for example, education and land) and services (care services, services for women victims of gender-based violence). Finally, the third pillar promotes inclusive and green private sector development by opening opportunities for financial access to women, lower-income households, and currently excluded and underserved groups and by better aligning the private sector’s incentives to climate objectives, as emphasized in the national development plan (NDP) 2022-2026.