Colombia, a country heavily reliant on fossil fuel exports, is actively working to complete its low-carbon transition and achieve its Nationally Determined Contribution (NDC) targets under the Paris Climate Agreement.

To support these efforts, AFD has partnered with Colombian authorities to adapt the GEMMES macroeconomic model to Colombia's specific context. The objective was to assess the long-term macroeconomic vulnerabilities and opportunities linked to Colombia's energy transition within the broader global shift to low-carbon economies.

This research work has culminated in a collaborative publication, which outlines the scientific findings and public policy recommendations derived from the GEMMES Colombia project: Modelling low-carbon transitions in Colombia: Macrofinancial risks and opportunities

While macroeconomic modelling is crucial for understanding the impacts of policy decisions and addressing macroeconomic imbalances during transitions, it is equally important to consider the behavioral aspects that shape the decision-making processes and strategies of stakeholders involved in Colombia’s low-carbon transition.

Based on the empirical results reflected in the GEMMES model scenarios, this project aims to develop a strategy game for the collective exploration of future scenarios. Beyond economic and financial aspects, it also addresses the energy transition by integrating social and climate dimensions, as well as, to a lesser extent, biodiversity-related issues.

This participatory modelling process is designed to facilitate dialogue among key stakeholders in Colombia’s transition (ministries, central bank, entrepreneurs, researchers, etc.), enabling them to anticipate and prepare for the short-, medium-, and long-term macroeconomic impacts that a low-carbon transition may generate.

To this end, the serious game Powershift aims to:

• Familiarize stakeholders in Colombia’s energy transition with macroeconomic issues related to transitions, so they can take ownership of these topics;
• Identify the “mental models” of each category of stakeholders regarding the energy transition, in order to better highlight emerging tensions and synergies and help evolve perceptions;
• Make scientific frameworks accessible and engaging to support informed decision-making;
• Improve coordination between public institutions, economic actors, and researchers around energy transition challenges.

This project therefore seeks to strengthen high-level interministerial and cross-sectoral dialogue and, by extension, enhance coordination among stakeholders (including the private sector) in support of Colombia’s environmental commitments.

Download the project presentation leaflet

The design, modeling, and implementation of the strategy game are grounded in the ComMod methodology, initially developed by CIRAD to facilitate multi-stakeholder processes and support collective decision-making and action.

The process includes modelling workshops with stakeholders, crash-test sessions, and game workshops involving policymakers, financial actors, donors, researchers, private sector representatives, and civil society. Key stages include conceptualization, validation, and scenario exploration. Participants are free to define their own strategies; any crises or tensions that arise during the game result from the collective decisions made throughout the sessions.

An ex-ante and ex-post assessment of stakeholders’ positions makes it possible to measure the effects of the approach on knowledge, interactions among actors, and participants’ strategic capacities. Debriefing workshops have been organized with policymakers to ensure effective ownership of the findings.

The project has led to the creation of a strategy game that is now beginning to be used by Colombian counterparts to explore energy transition scenarios. To date, 3 crash-test sessions and 9 game sessions have been held, bringing together nearly 200 public and private stakeholders involved in the energy transition, as well as more than 50 different institutions. These include Colombian universities, ministries (finance, environment, labour, planning, housing, health, energy, agriculture, tourism), the central bank, financial supervisory authorities, commercial banks, research centres, international cooperation actors, NGOs, business associations, and consulting firms. Some sessions included the participation of vice-ministers.

The workshops helped strengthen dialogue at four levels: interministerial; cross-sectoral (with a strong diversity of public, private, academic, and international actors across all sessions); interdepartmental (notably through the mobilisation of the 14 departments of the Financial Superintendency); and public–private.

By mobilising this wide range of stakeholders, PowerShift has marked an important step in strengthening Franco-Colombian interministerial and cross-sectoral dialogue on the energy transition. Outputs include a project synthesis report, a research paper, policy recommendations, and knowledge-sharing materials. Key insights were shared through debriefing workshops with Colombian partners.

Find out more: 

• Summary of the workshops held in June 2024
• Summary of the workshops held in September 2024
• Replay of the restitution workshop & presentation

Feedback from participants in the sessions indicates an improved understanding of the effects of the energy transition on the real economy of a country heavily dependent on hydrocarbon exports, as well as increased awareness of the associated challenges.

Key comments include:

• Importance of the co-construction process: Developing the game with Colombian partners allowed for the integration of the country’s institutional and economic specificities, which enhanced its credibility and stakeholder engagement.
• Creation of a pedagogical space conducive to dialogue: The sessions facilitated contacts with actors who had not previously been engaged.
• Flexibility and adaptability: The tool demonstrated its ability to adapt to different audiences, making it a valuable asset for a variety of stakeholders.
• Awareness of the complexity of energy transition dynamics: The game highlighted the interdependencies between economic, climate, and social issues, as well as differences in priorities between institutions, helping to better understand potential obstacles to public action.
• Illumination of behavioral dynamics: The sessions revealed that organized collective action primarily emerges in response to urgent issues or shared problems.
• Challenge of a holistic vision: Participants noted that developing a comprehensive view of the energy transition and actors’ strategies is particularly difficult due to the complexity of the subject.
• Success factors for participatory approaches: The involvement of high-level decision-makers and the existence of a safe dialogue space were identified as key factors in fostering participant engagement.
• Limits of the exercise in a short timeframe: While the game facilitates understanding of systemic dynamics, translating this understanding into actionable solutions requires complementary measures and long-term follow-up.

Building on these achievements, potential avenues for extension could include:

• Technical support for potential application of the tool at the territorial level;
• Facilitation of international exchanges to share best practices in participatory dialogue;
• Further strengthening of public–private partnerships through continued use of the tool.

• Annabelle Moreau Santos, Scientific Mediation Officer, AFD
• Antoine Godin, Economist, Head of AFD Macroeconomic Modelling Team
• Julien Calas, Agronomist and Research Officer on Biodiversity, AFD

With one of the highest youth unemployment rates in the world, South Africa’s planning for a just transition needs to take into account the vulnerabilities of its youth cohorts, especially those that can be qualified as “not in education, employment or training” (NEET). For example, a recent study conducted in the framework of the EU-AFD Research Facility on Inequalities revealed that the Mpumalanga province, the region with the highest exposure to the coal exit, has had a NEET youth rate of over 37% for the past decade, with almost three-quarters of them living in income-poor households.

Since 2019, the National Business Initiative (NBI) has been spearheading a multi-faceted and multi-sector partnership, which focuses on expanding and growing pathways for young people to access Installation, Repair and Maintenance (IRM) occupations. The IRM initiative is strategically aligned to various initiatives of the government to drive inclusive recovery and revitalisation of the economy, particularly in the aftermath of the Covid-19 pandemic. It has subsequently been incorporated as part of the Presidential Youth Employment Intervention (PYEI). The Initiative works on the premise that, by supporting township-based IRM entrepreneurs to strengthen and grow their businesses, and by linking them to localised market opportunities, there will be a concomitant increase in the demand for skilled labour, which could lead to the creation of employment opportunities. Therefore, it is a direct response to the youth unemployment challenge.

Collaborating closely with the NBI, the Centre of Researching Education and Labor (REAL Centre) contributed its expertise to the comprehensive analysis of the four key regions identified in Phase 1 of the IRM skills ecosystem mapping project: Atlantis (Western Cape), Mandeni (KwaZulu-Natal), Mamelodi (Gauteng), and Kathorus (Gauteng). Building upon the success of this initial phase, the REAL Centre will now expand the project's scope to the Nkangala district municipality, which is one of the three districts of Mpumalanga province.

This work is also part of AFD's dialogue with the South African authorities on the just transition and the reduction of inequalities.
 

Find out more about the Extension in South Africa
 

This research project will conduct a detailed analysis of the skills ecosystem that could feed into the various initiatives to support local authorities and communities in the Nkangala district, which concentrates the coal-fired power plants that will be closed as a result of just transition policies.

Phase 1 of the project revealed that an IRM skills ecosystem mapping project is crucial for addressing inequality by thoroughly analysing the socioeconomic and demographic profiles of diverse townships in South Africa. 

By identifying specific skill gaps and understanding the challenges faced by Small, Medium, and Micro Enterprises (SMMEs) in these areas, the study can inform targeted interventions aimed at reducing inequality in access to employment and economic opportunities. 

Furthermore, by examining the role of Technical and Vocational Education and Training (TVET) institutions and conducting a comprehensive literature review, the study ensures that proposed interventions are evidence-based and tailored to the needs of the communities studied. 

Ultimately, the study's approach of generating actionable insights in collaboration with stakeholders aims to drive meaningful impact and promote inclusive economic development in underserved regions, contributing to efforts to reduce inequality, to advance the principles of just transition and to foster a more inclusive society.

Building on Phase 1 of the IRM skills ecosystem mapping, researchers will apply the following method:

1. They will set the context for the Nkangala district through desktop research and a few selected key informant interviews;
2. They will collect primary data and set up fieldwork through stakeholder mapping workshops and key informant interviews to collect data;
3. They will then provide an initial narrative on the overarching local skills ecosystem from the site mapping exercise and will draw on the document review and contextual work on the Nkangala district. Drawing on Spours’ (2019) work on ecosystems, they will use three core elements: the dimensions of verticalities, horizontalities and mediation to understand and analyse the skills ecosystem Nkangala district and to guide the cross-site analysis, building on the work undertaken during Phase 1.
    

You will find below the different research papers related to this project:

• Skills ecosystem mapping of MSMEs located within the Nkangala District Municipality