Results on Mechanism for Voluntary Mitigation of Greenhouse Gas Emissions in Colombia

The MVC Colombia initiative, a voluntary mechanism for reducing greenhouse gas (GHG) emissions in Colombia was a project, led by Fundación Natura and supported by the Global Environment Facility (GEF) through the Inter-American Development Bank (IDB). I was fortunate enough to lead the market efforts from the perspective of the Colombian Commodities Exchange.

1. Overview of MVC Colombia

MVC Colombia, or the Voluntary Mitigation Mechanism for GHG Emissions, was designed to establish a technological and institutional platform to facilitate voluntary emission reduction activities in Colombia. The initiative focused on three main components:

1. Market Platform: Creation of a national platform for trading VERs, including an information system, a registry interface, and a transactional mechanism.

2. Carbon Forestry Projects: Development, validation, and verification of VERs from a portfolio of forestry projects.

3. Corporate GHG Reduction: Promotion of voluntary corporate and institutional activities for reducing and compensating GHG emissions.

The project was executed over five years (2011-2016) and involved key partners such as the Bolsa Mercantil de Colombia (BMC) and the Corporación Ambiental Empresarial (CAEM), affiliated with the Bogotá Chamber of Commerce.

2. Key Achievements

The project achieved significant milestones, including:

• Carbon Sequestration: Over 199,690 hectares of forests and agroforestry landscapes were conserved or enhanced, exceeding the initial target by 239%.

• Carbon Credits: Although the trading of carbon credits fell short of expectations (only 2,671 credits were traded), the project successfully validated and verified several forestry projects, generating a potential of 2.6 million VERs.

• Corporate Engagement: Over 60 companies adopted strategies to reduce their carbon footprint, surpassing the target of 20 companies. The project also facilitated the reduction of 397,875 tons of CO₂ equivalent through corporate mitigation efforts.

• Capacity Building: The project trained 94 institutions in carbon accounting and monitoring, far exceeding the initial goal of 22 institutions.

3. Lessons Learned

The document highlights several lessons from the project’s design, execution, and monitoring:

• Flexibility in Execution: The project’s success was partly due to its ability to adapt to changing circumstances, such as shifts in market conditions and regulatory environments.

• Importance of Partnerships: Collaboration with key stakeholders, including government agencies, private companies, and local communities, was crucial for achieving the project’s goals.

• Risk Management: Continuous monitoring and adaptation to risks, such as market skepticism and regulatory changes, were essential for the project’s sustainability.

• Resource Mobilization: The project successfully leveraged co-financing from various sources, including private companies like Ecopetrol and international organizations like USAID, to achieve its objectives.

4. Sustainability and Future Outlook

The project laid the groundwork for a sustainable voluntary carbon market in Colombia. Key recommendations for future initiatives include:

• Regulatory Support: The development of a clear regulatory framework for carbon markets is essential to ensure their long-term viability.

• Diversification of Projects: Expanding the portfolio of carbon projects, particularly in post-conflict areas, can enhance the social and environmental impact of carbon markets.

• Corporate Engagement: Continued efforts to engage corporations in carbon reduction and compensation activities are necessary to drive demand for carbon credits.

5. Personal Stories and Reflections

The document also includes personal reflections from team members who worked on the project, highlighting the challenges and rewards of implementing such a complex initiative. These stories underscore the importance of passion, perseverance, and collaboration in achieving the project’s goals.

6. Conclusion

MVC Colombia represents a significant step forward in Colombia’s efforts to mitigate climate change through voluntary carbon markets. While the project faced challenges, particularly in achieving its trading targets, it successfully built a foundation for future initiatives. The lessons learned and the capacity developed during the project will be invaluable as Colombia continues to pursue its climate goals under the Paris Agreement.

In summary, MVC Colombia demonstrates the potential of voluntary carbon markets to contribute to climate change mitigation while promoting sustainable development and corporate responsibility. The project’s legacy lies in its ability to inspire future actions and policies that align economic growth with environmental sustainability.