IDB and IDB Invest study highlights opportunities for the circular economy in Colombia

IDB Invest and IDB in collaboration with Bancolombia, Banco de Bogotá and Bancoldex carried out the study Financing the Circular Economy: Experience in Colombia, in coordination with the Swiss Foundation BASE.

The study analyzes, from the Colombian reality, the relevant role of the financial system in the process of transition to circularity. The document explains the recommended criteria for analyzing and categorizing circular economy projects, and proposes a methodology that allows for the identification of financing opportunities that meet the circular transition objectives, and at the same time contribute to achieving the Sustainable Development Goals (SDG), emission reduction goals and just transition, or an inclusive economy for all.

In addition, the study proposes a practical tool, a categorization system, to identify and classify circular projects, report circular financing in a transparent and homogeneous way, and measure positive impacts at the environmental and social level. The study includes the development of three pilot projects with the objective of methodologically testing the categorization system for circular projects in collaboration with the three participating Colombian banks.