Financing the future
The Climate Finance Broker Facility links well-structured projects with public and private funding — accelerating NDC implementation and building a resilient, low-carbon future.
With the highest recurrence of extreme weather events in South America, Colombia has made climate action a priority, emerging as a regional leader with a strong institutional framework for resilient, low-carbon development.
In its updated 2020 Nationally Determined Contribution (NDC), the national government established a target to reduce greenhouse gas (GHG) emissions by 51% by 2030 compared to a business-as-usual scenario and cut black carbon emissions by 40% from 2014 levels. Colombia’s Long-Term Strategy E2050 outlines the country’s climate plans for achieving carbon neutrality by 2050.
Mobilising finance is critical to achieving these ambitions. With NDC Partnership support, the Ministry of Environment and Sustainable Development (MESD) and National Planning Department (DNP) have led efforts to mobilise resources that will fast-track implementation of priority NDC actions.
After submitting its enhanced NDC in 2020, the DNP launched the “Climate Finance Broker Facility” to connect climate projects with public and private funding and accelerate NDC implementation. By prioritising agriculture, renewable energy and sustainable urban development, the Broker Facility channels financing toward NDC-aligned projects.
Three pillars for targeted financing
The Broker Facility operates under three key pillars:
- Demand: identifying and developing technically and financially viable project portfolios from ministries, territorial entities and businesses
- Offer: identifying and engaging funding sources — including international cooperation, public funds, private investments and philanthropy — while cataloguing green financial products
- Ecosystem support: strengthening project developers’ capacities through incubators, accelerators and innovation centres to enhance project readiness and align proposals with investment standards
"The Climate Finance Broker Facility is one of our most powerful tools for closing the climate finance gap," says Carolina Díaz Giraldo, DNP Director of Environment and Sustainable Development. "By connecting well-structured projects with the right stakeholders, we’re unlocking opportunities that would otherwise remain inaccessible."
DNP established the Climate Finance Broker Facility with support from the NDC Partnership and multiple partners, including Germany. The cooperation with Germany, which supports software development through the PRONDC programme and, through the IKI Interfaz programme, is working with Chambers of Commerce to strengthen capacities in climate change, biodiversity and gender. This goal is to boost business engagement with the Climate Finance Broker Facility by identifying private-sector-led climate projects and expanding the facility’s reach across Colombia. Chambers of Commerce, leveraging strong local networks, are key to advancing Colombia’s climate goals and building a competitive, climate-resilient economy.
Structured processes pave the way
In August 2024, the DNP introduced the NDC Partnership’s “Project Status Checklist” to the Broker Facility to streamline the matchmaking processes between project developers and investors, aiming to build a pipeline of projects for further development support.
The Project Checklist is a pilot programme to help governments and project developers organise project information and align projects with investor requirements. Piloted in six countries, the Project Checklist guides users through project information requirements to improve project quality, strengthen institutional processes and build national capacity to advance investment-ready, NDC-aligned projects. As one of the first countries to pilot the Checklist, Colombia is demonstrating how structured financial tools can accelerate project funding.
Scaling up impact through collaboration
A second round of private sector and regional promotion is scheduled for August 2025 at the DNP Climate Finance Event, providing a platform to showcase new climate finance opportunities, connect developers with investors and advance Colombia’s climate finance strategy.
“The work we’re doing today is laying the foundation for a sustainable future,” said Luis Alejandro Noguera Robayo, the Climate Finance Broker Facility Manager at DNP. "Through partnerships and innovation, we are bridging the climate finance gap and building capacity among project developers, highlighting the importance of collaboration in achieving Colombia’s NDC targets."
Colombia’s experience highlights the critical role of structured processes, multi-stakeholder engagement and financial tools in mobilising climate resources. As global demand for climate finance grows, initiatives like the Climate Finance Broker Facility ensure projects secure the funding needed to drive real change.
Learn more and read the full immersive story in the NDC Partnership’s “Partnership in Action” report.
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Contact
IKI Office
Zukunft – Umwelt – Gesellschaft (ZUG) gGmbH
Stresemannstraße 69-71
10963 Berlin
Funding priority
The IKI strategy
The IKI aims to achieve maximum impact for the protection of the climate and biodiversity. To this end, it concentrates its funding activities on prioritised fields of action within the four funding areas. Another key element is close cooperation with selected partner countries, in particular with the IKI's priority countries.
NDC Partnership
The German Government has provided financial and political support to the NDC Partnership since its formation. Specifically, this has involved
- direct financing of the NDC Partnership Support Unit;
- indirect financing via ongoing projects;
- work as a member of the Steering Committee.
The EUR 700 million provided by the German Government to date makes it the NDC Partnerships largest sponsor. Around EUR 550 million of this total sum was provided via the IKI.