EQUITABLE AND GREEN RECOVERY DEVELOPMENT POLICY FINANCING

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The development objectives of the Equitable and Green Recovery Development Policy Financing in Colombia support measures that: (i) reduce income inequalities (including gender-related) and build resilience; (ii) promote economy-wide decarbonization and climate adaptation; and (iii) mitigate climate change by protecting biodiversity and reducing deforestation. The following pillars are included. Pillar 1, reducing Income Inequalities (including gender-related) and building resilience, promotes equity by tackling inequalities and building households’ resilience. It supports measures that improve the coverage and targeting of social transfers. It also supports reforms to parental leave, which will reduce the barriers to economic opportunities faced by women. Pillar II, promoting economy-wide decarbonization and climate adaptation, advances and upgrades longstanding, cross-government climate mitigation and adaptation efforts to reduce Colombia’s greenhouse gas emissions and adapt to climate change, including reducing the unequal distributional effects of climate change. It does this by: (i) codifying in law Colombia’s National Determined Contribution (NDC) commitments, including setting minimum emission reductions targets and adaptation actions and expanding carbon pricing; (ii) advancing critical reforms in support of Colombia’s “Energy Transition Law,” including policy and institutional reforms that consolidate large-scale adoption of non-conventional renewable energy; and (iii) mitigating investment risks through transparent, standardized disclosure of climate risks for investment operations. Pillar III, mitigating climate change by protecting biodiversity and reducing deforestation, advances Colombia’s biodiversity conservation agenda, which is a key building block of the country’s climate mitigation and adaptation strategy as expressed in the NDC; the United Nations Framework Convention on Climate Change recognizes the inseparability of biodiversity and carbon sequestration and climate adaptation. It does so by adopting a long-term policy to strengthen the country’s protected areas system as the primary sanctuary of critical ecosystems and increasing the incentives for forest conservation by formalizing the production of non-timber forest products.