Highly exposed to the effects of climate change and to the degradation of natural resources, Colombia is strengthening its climate policy, considering a green growth strategy, particularly since the 2014-2018 National Development Plan. Nevertheless, the country's dependence on raw material exports and its strong integration into international financial markets generate monetary, financial and commercial vulnerabilities. 

AFD is supporting Colombia in its efforts to tackle climate change through the GEMMES Colombia project, which is part of the third climate policy loan since 2018. The GEMMES programme, by integrating the impact of climate change into its forecasts, is developing a general theoretical model on the one hand, and national models applied to concrete cases and adapted to the characteristics of each country on the other, including the GEMMES Colombia model. 

About GEMMES: AFD and Macroeconomic Modelling Tools for the Ecological Transition

The GEMMES Colombia project, which is fully in line with AFD's commitment to strong sustainability, aims to :

• Highlight potential fragilities in the Colombian economy through a better understanding of the interactions between fiscal, monetary and trade policies and the country's NDC objectives;
• Identify the opportunities generated by the energy transition in Colombia: structural changes and financing methods under the best possible conditions;
• Quantifying the macroeconomic impact of NDC-related investments, particularly in the financial and tax sectors;
• Promoting public policy dialogue on Colombia's energy transition:

- Providing a decision-making tool for decision-makers on climate policies, with a view to limiting the consequences identified without compromising the implementation of Colombia's NDC objectives;

- By promoting the appropriation and sustainability of the GEMMES modelling tool within the partner institutions.

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In addition to its specific transdisciplinary approach, which makes this project one of the few to integrate the notion of strong sustainability, the originality of GEMMES lies in its consideration of macro-financial imbalances and the impact of the low-carbon transition on all elements of the balance of payments.

Moreover, GEMMES Colombia is part of a partnership initiative that is organised around two phases:

• The first phase is based on the development of the model and the macroeconomic analysis of the Colombian NDC trajectory, in partnership with the National Planning Department (DNP) and the Ministry of Finance (MHCP) supported by AFD's modelling teams.
• The second is intended to ensure the sustainability of the project after the end of the support, with the analysis by the National University of Bogota (UNAL) of the interactions between trade, fiscal and monetary policies and the NDC trajectory, as well as the training of students in sustainable development through the Catedra course as well as in the GEMMES methodological approach.

The first results of the project have been presented at the virtual congress "Conexión DNP: transfiriendo conocimiento para innovar" on 2 and 3 December 2021. The project partners expressed their satisfaction, with the MHCP showing a particular interest in modelling after a year of remote work due to the Covid-19 pandemic.A university course on sustainable development (Catedra), partly based on the results of the GEMMES Colombia project, was launched on 7 March 2022 at UNAL to raise awareness of the issue.

In March 2022, a university course on sustainable development (Catedra), partly based on the results of the GEMMES Colombia project, was launched at UNAL. As a continuation of this initiative, a second course on the modelling of ecological transitions in the Global South was given in 2023.

The GEMMES Colombia model, enriched by academic expertise and integrated into decision-making processes through Colombian ministries, has become a key tool for public policy dialogue. These exchanges continue thanks to the GEMMES Strategic Committee, composed of the Ministry of Finance and Public Credit (MHCP), the National Planning Department (DNP), the Ministry of Mines and Energy (MME) and the Banco de la República.

 

At the request of the Colombian authorities, GEMMES was added to the MHCP macroeconomic models in 2023 and was coupled to the Energyscope energy model, an energy assessment and planning tool. Ownership of the model continued in 2024 with executive training on the use of the model provided to MHCP officials.

The research resulted in a collective book published in June 2024, presenting the scientific findings and policy recommendations from the GEMMES Colombia project: Modelling low-carbon transitions in Colombia: Macrofinancial opportunities and risks project. This work also led to the launch of a new project: the creation of a serious game to support multi-stakeholder dialogue around the NDC in Colombia.

Watch the replay of the GEMMES Colombia book launch (in Spanish)

The GEMMES Colombia model, by developing scenarios on fossil fuel exports and alternative policies for the 2023-2050 period, as well as financing scenarios of the NDC trajectory, contributes to informing decision-makers in their political strategy to fight global warming. The model also allowed the National Planning Department (DNP) to analyze the consequences of economic shocks such as the loss of the country’s investment quality, the reduction of coal exports or the bankruptcy of Evergrande in China.

The conclusion is clear: a diversification of the production structure and a transformation of public finances are essential if Colombia is to meet the challenges of a global low-carbon transition and ensure its own energy transition. The GEMMES model highlights the importance of using a combination of private investment and public green bonds to finance Colombia's climate ambition. 

Download the publications related to GEMMES Colombia: 

• Can Colombia cope with a global low-carbon transition? (June 2023)
• Low-carbon transition and global macroeconomic vulnerabilites: A multidimensional approach in tracing vulnerabilities and its application in the case of Colombia (July 2023)
• Modelling low-carbon transitions in Colombia: Macrofinancial opportunities and risks (July 2024) 

Contact:  

• Antoine Godin, economist at AFD, head of the Macroeconomic Modelling Unit

Contacto:  

• Antoine Godin, economista, responsable de la célula de modelización macroeconómica GEMMES, AFD

Clermont-Ferrand is a hub of expertise in development economics recognized at the French and international level, thanks to the research activities of the Foundation for Studies and Research on International Development (FERDI). Training courses aimed at executives and future decision-makers in the countries in the Global South, provided in particular by the Centre for International Development Studies and Research (CERDI) since 1976, also contribute to this recognition.

The presence of a branch of the Global Development Network (GDN) will now strengthen this hub. This international organization's mission is to strengthen research capacities in Global South countries wishing to benefit from the city's dynamic context. 

Through AFD, the French State supports the research and training activities of the Clermont International Development Hub and the establishment of the Clermont-Ferrand branch of GDN within the framework of a single project. This project aims to strengthen the ecosystem of local expertise and to develop synergies between the actors concerned for the benefit of their partners in the Global South.

This project has three complementary objectives:

• Support for the creation in Clermont-Ferrand of a branch office of the GDN, to enable the network to continue from France its flagship activities (such as its annual conference and the Global Dev blog), as well as to launch an ambitious programme to simultaneously fund research production and capacity building of African research institutions;
• Support for FERDI’s research activities, to enable the foundation to gain visibility and influence on sustainable development issues;
• Strengthening of FERDI’s training activities in partnership with the University of Clermont-Auvergne, including the Master’s degree in “Project Management for Development” (MODEV), which specifically targets executives in countries in the Global South, and setting up additional training activities (development of short and/or distance courses, support for doctoral courses in the South).

The expected impacts of the project are:

• For the actors of the Clermont Hub: strengthening the influence and outreach of the Clermont pole and its actors, allowing them to become a reference on development issues in national and international debates.
• For the partners of the Clermont hub in the Global South, and in particular in French-speaking Africa:

• Improving the skills of managers who receive training (women and men) in the management of development policies and projects;

• Strengthening the research capacities of researchers and partner institutions in the Global South on sustainable development issues, as well as their capacity to participate in public debate;

• Development and/or consolidation of networks of researchers and learners in beneficiary countries;

• Improved public policy dialogue, so that development policy-making in AFD’s partner countries can benefit from the insights of locally based research.

Contact: 

Linda Zanfini, research officer at AFD

The densely populated and lowly elevated coastline of the Gulf of Guina is particularly exposed to coastal erosion and sea-level rise. The entire coastline is currently experiencing alarming erosion rates, ranging from 1 to 15 meter per year between Côte d’Ivoire and Nigeria, mostly because of human activities. The problem is well studied and various programs aim to put in place coastal protection measures. By contrast mid- and long-term vulnerability to sea-level rise triggered by climate change has received less attention in this region. 

In addition, to assess the various risks induced by sea-level rise, it is also necessary to consider land surface movements. The gradual lowering of the land surface in some places is called subsidence. The phenomenon is widespread at the global scale, especially in coastal megacities and deltas: 51 to 71% of present-day relative sea-level rise experienced by people worldwide is actually caused by subsidence. The rate can reach several centimeters per year in some places, however coastal subsidence is globally critically under-quantified, and the Gulf of Guinea region is no exception to this.

This research program aims to fill the lacune in knowledge on coastal land subsidence and relative sea-level rise along the Gulf of Guinea. It will provide useful space-borne quantifications of current coastal subsidence rates, assess the driving forces of land subsidence and provide first projections of potential future subsidence using numerical models. 

Impact will further be created by collaborating with local institutes, connecting to other projects and disseminating findings, data and tools to local stakeholders. 

One of the long-term objectives is also to create awareness and agenda setting of this issue of relative sea-level rise in the region, in order to support sustainable development or adaptation projects in coastal areas and policymaking in the region. 

The first working group will assess current subsidence rates for the whole coastline, using satellite data to monitor vertical land movement over several years. The results will be combined to satellite elevation data to provide a first assessment of the areas that could be flooded in future decades. 

The second working group will focus on the city of Lagos and surroundings, to provide an in-depth analysis of subsidence and to understand drivers and processes. The research team will build a process-based numerical model of subsidence to provide projections of future subsidence rates according to different scenarios.

Then, the methods developed for Lagos will also be applied to 3 or 4 other areas, coastal megacities or deltas, identified as “hotspots” for relative sea-level rise by the first working group. 

Knowledge exchange events (seminars and workshops) will also be regularly organized, to disseminate research findings and build a regional community of interest on subsidence and relative sea-level rise. 

Results will be shared through scientific papers, technical reports, on-line databases and policy briefs. They will provide valuable information for policymakers and coastal (infrastructural) development projects potentially impacted by relative sea-level rise. In particular, results will help to better calibrate coastal adaptation measures and may also identify areas where the efficiency of natural coastal defences could fail in the future. Understanding the drivers of subsidence will also help to identify potential mitigation measures. The project will also foster public policy dialogue on coastal vulnerability, to favor adaptation projects.

• Marie-Noëlle Woillez, research officer on climate change impacts, AFD
• Marine Canesi, research officer, AFD