Developing the regulation of climate policy instruments in Colombia

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Project country: Colombia

Sector: Low-carbon policy
Expert Partners: The Carbon Trust

This skill-share supported Colombia’s Ministry of Environment and Sustainable Development (MADS) to develop the basis of the regulation of two key climate policy instruments: the Green House Gas Emissions Mandatory Reporting Programme (ROE) and the Emissions Trading System (PNCTE).

Drafting regulations for this type of programme was a first for Colombia, therefore support was needed to transform the results of previous technical studies into a clear and effective structure and regulatory texts, taking into account relevant international experience applicable to the country.

The Carbon Trust team worked in close collaboration with Minambiente to develop the draft regulations, delivering weekly sets of regulatory articles for the technical elements of the programmes. After submitting the draft regulations, experts responded to technical questions that were raised and integrated feedback provided by Minambiente into the policy instruments.

The skill-share ended with a meeting with the Directorate of Climate Change Policies from the Ministry of Environment in Mexico (SEMARNAT) who are in charge of the pilot emissions trading programme in the country. The session provided a space to share lessons learned from starting the implementation of the ETS in Mexico, and recommendations for going from theory to practice. The session also facilitated the creation of a network between both Ministries.

Key Actions:

  • The Carbon Trust team focused on understanding the existing analyses and reports from previous consultancies that had delivered recommendations for the technical design of both policies.
  • Further support was requested by Minambiente to complete two additional outputs: two Technical Support Memoires to justify the decisions included in the regulation of the Colombian ETS and the Mandatory Reporting Programme.
  • The work undertaken to complete these documents included reviewing the processes and elements considered in the design of the Mandatory Reporting Programme (RENE) and ETS pilot programme in Mexico.

 





 

 
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     Key facts

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  • The regulation includes the interaction with the carbon tax and the carbon neutrality mechanism, the scope, the cap, offsets, temporal flexibility, price stability, allowance allocation, use of revenues, Monitoring, Reporting and Verification (MRV), institutional architecture, and sanctions regime.
  • The Technical Support Memoires, usually prepared when drafting regulations in Colombia, explain the rationale behind the policy decisions and design and will help readers from other ministries and other private parties under the law to understand the proposed rule in detail.
  • Meetings with the Ministry of Environment were gender balanced. Although there was no specific GESI indicator planned, the skill-share sought to understand potential negative impacts for vulnerable groups derived from the implementation of the Mandatory GHG Emissions reporting programme and the Emissions trading system.

Key achievements

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  • The skill-share enabled the alignment of the general regulation text with Colombia’s national legal framework.
  • This text will allow the government to start the process of generating and approving legal documents associated with the general regulation.
  • The elaboration of this text will also allow Colombia to have total clarity about the starting point of all aspects associated with the specific regulations of the programmes, which will give the country a strong basis to continue developing the roadmap of the national emissions trading system, including communication and stakeholder engagement processes.
  • The roadmap development will contribute to start-up the national emissions trading system and will therefore help to achieve Colombia´s NDC.