Switching from coal dependency to opportunity in Colombia’s Cesar and La Guajira regions

18 September 2025


In northern Colombia, the departments of Cesar and La Guajira have long been defined by coal. For decades, mining shaped their economies, their landscapes, and the lives of thousands of families. But as Colombia moves toward its climate goals, these regions face a difficult question: What’s next for these communities as coal winds down?

 

That was the starting point for a UK PACT-funded project led by the Regional Centre for Sustainable Finance at Universidad de los Andes. The initiative didn’t just aim to build technical capacity—it set out to help Colombia navigate the complex terrain of a just transition, where climate action goes hand-in-hand with economic inclusion.

The journey began in the financial sector. Banks, pension funds, and insurance companies were trained to understand the risks of climate change. Through hands-on workshops and strategic sessions, over 340 professionals learned how to assess these risks and design responses. They created new governance strategies, adjusted investment portfolios, and formulated projects that aligned with a low-carbon future.

But the data told a more complex reality. As institutions assessed their exposure to transition risks, one region stood out: Cesar. Its longstanding dependence on coal made it especially vulnerable—not only in economic terms, but socially as well. The financial risks identified through these assessments helped to prioritise Cesar as a region requiring immediate, coordinated intervention.

And so, the project expanded its focus. In Cesar, it brought together public institutions, civil society, academia, and the private sector to form the Just Energy Transition Network. Together, the network developed a roadmap for economic diversification and designed business strategies for new value chains.

At the heart of this transformation were the producers. In the mining district Corredor de la Vida (Corridor of Life), the project worked with coffee, cocoa, and cashew farmers to strengthen and start building a new economy for the region—one rooted in sustainability, traceability, and market access. What began with 35 pilot farms trained is now expected to scale to reach 3,500 families across 12 municipalities. These producers are adapting and leading the way to a new livelihood for their community that is not coal dependent. As one producer puts it: We’re not waiting for the future to arrive. We’re building it ourselves.”

This project connects green finance with rural development to ensure a just energy transition—it helped communities move from diagnosis to action. It showed that a just transition isn’t just about closing mines to reduce emissions. It’s about opening possibilities. And in Cesar, those possibilities are already taking shape.

This is one of the ways how UK PACT fosters the exchange of knowledge and experiences to identify solutions and pathways for a just, inclusive, and people-centred transition that also supports environmental sustainability.