OECD Environmental Performance Reviews: Colombia 2026

Executive summary

Colombia has strengthened its capacity to monitor and respond to climate impacts

Colombia has set long-term targets to enhance resilience and developed a comprehensive suite of quantitative and qualitative indicators to monitor progress. Strong emphasis on nature-based solutions is helping to create synergies with biodiversity conservation and combat desertification. Nevertheless, significant scope remains to better target adaptation finance and overcome resource constraints at local level to scale up implementation.

Ambitious climate targets require steep emissions reductions

Colombia aims to cut net greenhouse gas emissions by 51% by 2030 compared to business-as-usual and has a legally binding net-zero target for 2050. The government has progressively strengthened the policy and institutional framework to address climate change over the past decade. Achieving mitigation targets will require deep reductions in emissions, in particular from deforestation and agriculture, as well as curbing fast rising transport emissions.

Air pollution remains a major public health and economic burden

While emissions of fine particulate matter declined, overall air pollutant emissions increased between 2015 and 2021. Indoor air pollution is a significant concern in rural areas, where access to clean cooking technologies is limited. Colombia has made important strides to address air pollutants from fixed sources and tighten vehicle and fuel standards. To fulfil its pledge to halve air pollution-related health impacts by 2040, Colombia must continue strengthening its institutional, regulatory and financial frameworks for effective air quality management.

Progress on access to drinking water and sanitation has been slow

Access to safely managed drinking water and sanitation has shown little improvement over the past decade and Colombia continues to lag behind regional peers. The share of wastewater treated is relatively low and losses to public water supply are significant. Investment in water supply and sanitation infrastructure has declined since 2012. The efficiency of public investment; co‑ordination across institutions; cost recovery for service delivery and diversification of commercial sources of finance need to be improved.

Rising waste generation and uneven collection coverage challenge circular economy ambitions

With nearly half of solid waste still going to landfills, Colombia’s rising waste generation is straining already limited disposal capacity. The recycling rate has increased, but waste collection and separation remain key challenges. The country has strengthened waste information systems, advanced extended producer responsibility programmes and adopted taxes on single-use plastic. Informal waste pickers have gained recognition, but need stronger support. Improved cost recovery for sanitation services and scaling up economic instruments would provide better incentives for sustainable waste management and encourage investment in recovery infrastructure.

A comprehensive tax and subsidy reform is needed to align price signals with environmental goals

Colombia has taken steps to green its tax system, but further reforms are needed. Environment-related taxes fall short of their potential, while abundant green tax incentives are often inefficient, inequitable and fiscally costly. Colombia is one of the few Latin American countries to implement a carbon tax; however low rates, exemptions and fossil fuel subsidies lead to negative effective carbon rates. Strengthening carbon pricing and continuing to phase out fossil fuel subsidies are key to achieving climate targets in a cost-effective manner.

Colombia has taken steps to align finance with climate goals, but further efforts are needed

The country is a regional frontrunner in integrating climate considerations into financial sector policies, but the overall impact of its policies is unclear. It was the first country in the region to issue a green taxonomy and to conduct a climate stress test for its financial sector. However, fossil fuel investments still outpace clean energy, running counter to global trends. Strengthening mandatory disclosure and improving monitoring, reporting and verification systems would enhance transparency and better guide investments. Scaling up climate-aligned investments and mobilising private and international capital are also critical.

A megadiverse country facing mounting pressures on its biodiversity

The country hosts 10% of global biodiversity, yet over two-thirds of ecosystems are threatened. Land-use conflicts, agricultural and urban expansion, extractive industries, infrastructure development and invasive species, continue to drive biodiversity loss. The country has made marked progress in curbing deforestation over the past decade; but risks of rebound remain high, calling for reinforced efforts and continued vigilance. The country should invest in regular biodiversity assessments, strengthen regional data capacity and ensure sustained funding.

The policy framework for biodiversity has advanced significantly…

Colombia’s national Biodiversity Action Plan, updated in 2024, is comprehensive with clear targets, lines of action and indicators to monitor progress. National strategies and policies increasingly recognise that biodiversity underpins many other environmental, social and economic objectives. Colombia has already reached its United Nations Convention on Biological Diversity 30x30 target for marine conservation and is broadly on track to meet the terrestrial target. The country has a diverse and innovative policy mix, including payments for ecosystem services (PES) and biodiversity offsets. PES helped to expand the area under sustainable use, mobilise significant levels of funding and support local livelihoods. Their effectiveness, monitoring and long-term stability could still be improved. The government has taken decisive action to strengthen enforcement against illegal activities which are among the root causes of biodiversity loss. However, some regions continue to face insufficient technical capacity, lack of co‑ordinated land-use planning and limited state control.

…but further efforts are needed to mainstream biodiversity across key sectors

Agriculture drives for around 75% of deforestation and habitat loss. Efforts to integrate biodiversity considerations in the sector are under way, but more action is needed, particularly to phase out harmful incentives. The first national study of harmful incentives identified public expenditure and financial incentives that contribute to biodiversity loss, ecosystem degradation and unsustainable land use. The resulting roadmap to “green” agricultural finance is promising. The Comprehensive Rural Reform, a key priority of the 2016 Peace Agreement, aims to address some of the core challenges related to land tenure insecurity. Implementation of the reform and further progress on the multi-purpose cadastre should be accelerated.