On April 23, 2024, Colombia and the United Kingdom signed a strategic agreement known as the Energy Transition Action Plan (ETAP). This pact aims to promote the development of renewable energy sources and facilitate a sustainable energy transition in Colombia. The collaboration brings together a diversity of low-carbon technologies and projects aimed at reducing dependence on fossil fuels while providing support for a just transition for affected workers.

Key Aspects of the ETAP Plan:

1. Diversification of Clean Energies: The agreement focuses on promoting renewable sources such as wind, solar, run-of-the-river hydroelectric, biomass, geothermal, wave, and hydrogen and its derivatives. One of the key objectives is to add 2,000 MW of commercial operational capacity of unconventional renewable energies and install an additional 4,000 MW.
2. Gradual Elimination of Coal: As part of the plan, Colombia and the United Kingdom have joined the “Powering Past Coal Alliance” (PPCA), committing to establish a date for the progressive elimination of coal and the closure of coal-fired power plants in both countries.
3. Investment and Technological Cooperation: The agreement includes a significant investment, with Colombia seeking to attract up to $10 billion in foreign investment for infrastructure, green hydrogen, and other related projects. Additionally, a portfolio of large-scale renewable energy projects will be developed.
4. Training and Knowledge Transfer: Experts from the United Kingdom will collaborate in training and transferring knowledge and technologies to Colombia in areas such as offshore wind energy, hydrogen, financing for coal elimination, renewable project structuring, smart grids, energy communities, and just transition.
5. Energy Efficiency: Improving energy efficiency in buildings, transportation, and industry in Colombia will be promoted, adopting energy-efficient and low-carbon standards and norms.
6. Green Financing: Exploration will be done on how to maximize Colombia’s access to green capital funds available in London while supporting the development of local capital markets to finance climate action.
7. Business Participation: Facilitation of British companies’ participation in energy-related events in Colombia will be done, and events such as Colombia’s Investment Roadshow in London and ExpoTEJ in Bogotá will be leveraged to showcase green investment opportunities and sustainable projects.

Impact and Opportunities:

The ETAP not only highlights the urgency of transitioning to cleaner energy but also demonstrates how international cooperation is necessary to drive innovation and economic development. Companies in renewable energy, technology, infrastructure construction, and related industries will find a conducive environment for investment and project development. The implementation of the ETAP will be crucial for Colombia to achieve its sustainability and clean energy goals in the coming decades, promoting a fair and equitable energy transition, and the United Kingdom’s participation serves as a signal for other wealthy countries, responsible for most carbon emissions, to replicate similar initiatives with other countries in the global south.