Colombia's national carbon tax applies to the carbon dioxide equivalent content of fossil fuels burned for combustion. For 2026, the rate is 29,070.49 Colombian pesos per tonne of CO2 equivalent, set by DIAN Resolution 000003 of 2026 and in force since 1 February 2026. The carbon neutrality non-accrual mechanism lets a taxpayer avoid up to 50% of the tax accrued, never more, by cancelling verified carbon credits.
What it taxes and who pays
The tax was created by articles 221 to 223 of Law 1819 of 2016 and reformed by articles 47 to 49 of Law 2277 of 2022. The taxable event is the sale within Colombian territory, the withdrawal for own consumption, or the import for own consumption or for sale, of fossil fuels: petroleum products, natural gas and solid fuels such as coal. The tax accrues at a single stage, on whichever of those events happens first.
- Gas and petroleum products: the taxpayer is whoever buys the fuel from the producer or importer, or the producer or importer itself when withdrawing for its own use. Producers and importers are responsible for assessing it; it accrues on the invoice date or the customs clearance date, depending on the case.
- Coal: taxpayers and responsible parties are those who acquire or use it for their own consumption inside the country, and it accrues on the sale to the final consumer, on the invoice date.
Not every fuel pays the same way. Liquefied petroleum gas only triggers the tax on sales to industrial users; natural gas only triggers it on sales to the hydrocarbon refining and petrochemical industry; coking coal doesn't trigger it; fuel the producer exports, and coal the exporter exports, don't either; and fuel ethanol blended into gasoline and domestically produced biofuel blended into diesel (ACPM) fall outside the tax.
The rate: base, indexation and the 2026 value
Law 2277 of 2022 set the base rate at 20,500 pesos per tonne of CO2 equivalent, adjusted every 1 February by the prior year's consumer price index (CPI) variation, published by DANE, plus one percentage point, until it reaches a cap of three tax value units (UVT) per tonne. Per-unit fuel rates rise at the same pace.
For 2026, DIAN set the rate at 29,070.49 pesos per tonne of CO2 equivalent through Resolution 000003 of 2026, a 6.10% increase (2025 inflation of 5.10% plus the one-point add-on), effective from 1 February 2026.
Coal's phase-in
Coal entered the tax gradually. Paragraph 6 of article 222 of Law 1819 of 2016, amended by article 48 of Law 2277 of 2022, sets this schedule against the full rate:
| Year | Share of the full rate |
|---|---|
| 2023 and 2024 | 0% |
| 2025 | 25% |
| 2026 | 50% |
| 2027 | 75% |
| From 2028 | 100% |
In 2026, whoever pays the carbon tax on coal pays it on half the rate a fuel already at full rate would carry.
The carbon neutrality non-accrual mechanism
This is what matters most to a company that consumes fossil fuels. Paragraph 1 of article 221 states that the tax does not accrue for taxpayers that certify carbon neutrality, whether the certification is obtained by the taxpayer itself or through the final consumer, under rules issued by the Ministry of Environment and Sustainable Development.
Three rules bound the mechanism:
- A 50% cap. Non-accrual can never exceed fifty per cent of the tax accrued. Law 2277 of 2022 introduced this limit; there was no explicit statutory cap before.
- Single use of the certificate. A carbon neutrality certificate used for this benefit can't be reused for the same benefit or for any other tax treatment. This is the rule that prevents double counting.
- A defined procedure. The procedure is set out in articles 1.5.5.1 to 1.5.5.5 of Decree 1625 of 2016, the single regulatory decree for tax matters, where what Decree 926 of 2017 originally regulated was compiled. It requires, among other things, filing the request with the producer or importer before the tax accrues, evidence of the voluntary cancellation of the emission reductions or removals, and a verification statement quantifying in tonnes of CO2 equivalent the fuel that has been neutralised.
The Ministry of Environment can also regulate control mechanisms and set technical criteria for the mitigation outcomes used to access the mechanism. Accreditation of independent verifiers follows the ISO 14065 standard, through Colombia's National Accreditation Body (ONAC) or through International Accreditation Forum (IAF) member bodies, following the change introduced by Decree 446 of 2020.
The documentation chain: from the invoice to RENARE
Non-accrual claims don't usually fail for lack of available carbon credits; they fail on traceability. Holding one up under review means being able to show, linked together:
- The volume of fuel bought or consumed in the period, converted to tonnes of CO2 equivalent with the corresponding emission factor, using the same calculation logic as calculating a scope 1 carbon footprint.
- The equivalence with the reductions or removals cancelled: the amount of fuel the non-accrual is applied to can't exceed the amount tied to the taxable event.
- The record of cancellation of those reductions or removals in RENARE, the National Registry of GHG Emission Reductions that Colombia's Ministry of Environment and Sustainable Development runs for the country's mitigation initiatives.
- The verification statement from the accredited body, quantifying the fuel neutralised in tonnes of CO2 equivalent.
If fuel consumption lives in spreadsheets by site while invoices sit in a different system, reconciling that chain at period close is what takes the most time.
How it fits with the rest of the sustainability agenda
The carbon tax doesn't sit apart from the other obligations and reports a Colombian company already manages. Colombian environmental and sustainability regulation includes other instruments worth keeping consistent with these figures, and if your entity already prepares a sustainability report, the same fuel inventory that supports the non-accrual claim is a direct input for that report. On the credits side, it's worth not confusing the market behind non-accrual with the voluntary carbon credit market in general: not just any credit qualifies for the tax benefit, only reductions and removals cancelled under the Decree 1625 of 2016 procedure. For anyone comparing this tax with other environmental taxes in the region, our note on carbon emissions taxes gives the wider picture.
Where the revenue goes
Article 223 earmarks 80% of the revenue, through the Ministry of Environment and Sustainable Development, for purposes such as coastal erosion management, reducing and monitoring deforestation, protecting water sources, restoring strategic ecosystems and financing the country's national climate action targets.
Common mistakes
- Buying carbon credits that don't qualify for non-accrual. Only reductions or removals cancelled under the Decree 1625 of 2016 procedure and recorded in RENARE count; a generic voluntary-market credit without that process doesn't unlock the benefit.
- Assuming non-accrual exempts 100% of the tax. The statutory cap is 50%, with no exception.
- Reusing the same carbon neutrality certificate for another tax benefit. The rule expressly forbids it.
- Applying last year's rate. The rate changes every 1 February; using the 2025 rate on a 2026 transaction understates the tax.
- Forgetting coal's phase-in. Applying the full rate to 2026 coal consumption overstates the tax: only 50% applies.
Frequently asked questions
What is Colombia's 2026 carbon tax rate?
29,070.49 pesos per tonne of CO2 equivalent, set by DIAN Resolution 000003 of 2026, in force since 1 February 2026.
How is the rate updated each year?
Every 1 February, by the prior year's DANE consumer price index variation plus one percentage point, until it reaches a cap of three UVT per tonne of CO2 equivalent.
Can carbon credits eliminate the tax entirely?
No, only partly. The carbon neutrality non-accrual mechanism can never exceed 50% of the tax accrued, and the certificate used can't be reused for any other tax benefit.
Does coal pay the full tax?
Not in 2026. It phases in: 0% in 2023 and 2024, 25% in 2025, 50% in 2026, 75% in 2027, and the full rate from 2028. Coking coal is excluded.
Which decree regulates the non-accrual procedure today?
Articles 1.5.5.1 to 1.5.5.5 of Decree 1625 of 2016, where what Decree 926 of 2017 originally set out was compiled.
Where is the cancellation of credits used for non-accrual recorded?
In RENARE, the National Registry of GHG Emission Reductions run by the Ministry of Environment and Sustainable Development.
Supporting a non-accrual claim takes measured fuel consumption, converted into tonnes of CO2 equivalent and traceable back to the invoice. That's exactly what our carbon footprint solution organises.
