Colombian Green Taxonomy

The Colombian Green Taxonomy is a classification system for economic activities and assets that make a substantial contribution to the country's environmental objectives. It was published on 11 April 2022 and led by the Ministry of Finance and Public Credit and the Financial Superintendence of Colombia, with the Ministry of Environment and Sustainable Development, the National Planning Department and the national statistics office DANE. Colombia was the first country in the Americas to publish a green taxonomy.

What a green taxonomy is for

A taxonomy does not require anyone to cut emissions. What it does is settle, in writing and with technical criteria, what counts as green and what does not. That shared language delivers four things:

• A verifiable basis for labelling green bonds, green loans and other financial instruments.
• Lower greenwashing risk in the capital market.
• A single reference for issuers, banks and investors instead of a different definition per institution.
• A way for the country to track how much financing actually reaches sustainable activities.

The Financial Superintendence issued instructions on its adoption through External Circular 005 of 2022.

The seven environmental objectives

An activity qualifies when it contributes substantially to one of these:

1. Climate change mitigation.
2. Climate change adaptation.
3. Conservation of ecosystems and biodiversity.
4. Water management.
5. Soil management.
6. Circular economy.
7. Pollution prevention and control.

How it is structured

The document has three components: a general framework setting out the conceptual design, the climate change mitigation objectives, and the land-use sector objectives.

Seven mitigation sectors

• Energy
• Construction
• Transport
• Waste management
• Water
• Information and communication technologies
• Manufacturing

Three land-use sectors

• Livestock
• Agriculture
• Forestry

Giving livestock, agriculture and forestry their own block is not a technicality. It reflects that in Colombia a large share of both emissions and mitigation potential sits in land use, not only in industry.

What it means for your company

If you are not a financial institution, the taxonomy does not impose a new report on you. It shows up the moment you seek financing labelled green or sustainable, or when a client or a fund asks you to fit your activity into a recognised category.

At that point the bank or the arranger will ask you to prove the activity or asset meets the technical criteria, and proof means measured, traceable data rather than statements of intent. The missing pieces are always the same: energy intensity per unit produced, process emissions, water use and discharge, and the audit trail from each figure back to the invoice or source record. Having your emissions inventory in order before that conversation saves weeks.

How it differs from the EU taxonomy

The EU taxonomy is a regulation with substantial contribution criteria, a do no significant harm test and minimum safeguards, tied to disclosure obligations for certain companies and financial institutions. The Colombian one shares the logic of technical screening criteria but was created as a common market reference, connected to the financial system through the Financial Superintendence's instructions rather than through a general reporting duty for non-financial companies.

Frequently asked questions

Who issues the Colombian Green Taxonomy?

It was led by the Ministry of Finance and Public Credit and the Financial Superintendence of Colombia, with the Ministry of Environment and Sustainable Development, the National Planning Department and DANE.

Is it mandatory for companies?

It does not by itself impose a reporting obligation on non-financial companies. Its practical effect comes through the financial system: it is the criterion used to classify and label green bonds and loans.

Which sectors does it cover?

Seven mitigation sectors (energy, construction, transport, waste management, water, information and communication technologies and manufacturing) and three land-use sectors (livestock, agriculture and forestry).

How long has it existed?

Since 11 April 2022, when Colombia became the first country in the Americas to publish a green taxonomy.

Manglai helps Colombian companies measure and trace the environmental data that taxonomy criteria and green lenders ask for. Start with our carbon footprint solution.