Promoting sustainable economic and urban development: KfW supports private sector in Colombia
Press Release from 2019-12-20 / Group, Sustainability, KfW Development Bank
- Promotional loan of USD 100 million for Colombian development bank Bancoldex
- Increased energy efficiency and expansion of renewable energy sources to generate 1.5 gigawatts
- Funding for sustainable transport systems
- Uncoupling economic growth from rising CO2 emissions
On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), today KfW signed a financing agreement for a promotional loan amounting to USD 100 million with the Colombian development bank Banco de Comercio Exterior de Colombia S.A. (Bancoldex). In turn, Bancoldex will use the credit line to issue loans to companies from the private sector in Colombia which – by investing in energy efficiency and sustainable transport measures like replacing air conditioning units or replacing a bus company’s fleet, etc. – will facilitate sustainable power supply through the use of renewables (such as wind and solar power and geothermal energy). The line of credit will support Colombia in its plans to expand energy generation capacity from renewable energy sources to 1.5 gigawatts.
“An increased level of energy efficiency in the Colombian private sector is a decisive factor when it comes to decreasing power consumption and enabling sustainable economic growth. At the same time, it allows economic growth to be uncoupled from rising CO2 emissions,” explains Prof. Dr Joachim Nagel, Member of the Executive Board at KfW Group.
The credit line plays a major role in Colombia's ability to meet its commitment to reduce the country’s greenhouse gas emissions by 20 per cent by the year 2030 as part of the Paris Climate Agreement.