In September 1997, the Bank and Swiss government launched a collaborative initiative to help potential host country governments explore the opportunities and potential benefits from participating in “activities implemented jointly.” Germany, Australia, Finland, and Austria later joined Switzerland as partners in this initiative. Colombia is one of 22 countries in Asia, Africa, Eastern Europe, and Latin America participating in the program.

“The program is host country-driven, reflecting its needs, and is characterized by country ownership,” says Peter Kalas, a World Bank senior environmental specialist. “The Bank plays the role of facilitator and adviser.” He says the Bank’s participation has been budgeted at $6 million while most of the funding is leveraged from donor countries with contributions provided by host countries.

The main objective of the program is to provide host countries with information dealing with the “flexible mechanisms” defined by the Kyoto Protocol to facilitate trade in carbon credits, Kalas adds. Such information provides the host country with tools and options to help them analyze the issues and opportunities presented by potential international markets for reducing greenhouse gas emissions.

To attain this objective, Kalas says, studies conducted under the program:

• quantify the potential for greenhouse gas offsets and assess the related costs
• assess potential for technology transfer and identify areas of implementation
• highlight the opportunities created by a possible market for greenhouse gas offsets
• analyze the country-specific barriers in addressing climate change and propose measures necessary for a country to actively cooperate in the “clean development mechanism” or joint implementation
• identify potential projects for international cooperation in the clean development mechanism, including also other financing opportunities, such as the Global Environmental Facility and Prototype Carbon Fund

Kalas says Colombia is the best model for an NSS program because of its “innovative approach, developed by a national team of experts addressing several vital issues of clean development mechanisms.” He says this is especially important in the area of market analysis, and the operational approach provides guidelines for the forestry and industrial development projects.

The Bogotá conference, which brought together more than 500 participants from different sectors of Colombian official, private sector, and civic society groups, also attracted representatives from other Latin American countries.

The high quality of the study and the skills demonstrated by the Colombian experts, seconded by Swiss specialists, led to requests from other Latin American countries that these experts be integrated into their own studies when the time comes. Based on the outcome of the study, the government decided to implement some of the measures proposed by the experts, and the Swiss government is considering extension of its current financial support.

The potential earnings for Colombia would be on par with flower and banana exports from the country, says Kirsten Oleson, an operational analyst in LCR’s environmental and socially sustainable development unit.

“The indirect (domestic) benefits of carbon trade may even be more valuable for the nation,” she says. “This includes the promotion of a combination forest protection/sustainable rural development program that could improve the welfare of indigenous and minority communities, protection of Colombia’s unique biological resources, and possibly displacement of illicit crops.”