The Inter-American Development Bank (IDB) approved a $34.5 million loan to finance an energy efficiency program for the residential and public sector in the Caribbean coast area of Colombia.
The program has two objectives for the Caribbean region of Colombia. The first is to cut electricity consumption and reduce national government subsidies by launching energy efficiency measures in low-income households and public buildings. The second objective is to educate people in the region on the importance of saving energy by training technicians and energy consumers on how to efficiently manage electricity use.
The loan will finance activities to replace inefficient appliances that use potent greenhouse gases as refrigerants with cutting-edge alternatives that are less harmful to the environment. The program will also swap out inefficient lightbulbs for free in low-income households.
Additionally, the program will design and launch communication strategies that target women and people with disabilities to encourage these groups to save energy. The loan will also fund photovoltaic panel installations for households in the bottom two income brackets as a pilot self-generation strategy that can then be replicated across the Caribbean region.
The program is expected to lead to more efficient energy use, which will help reduce electricity consumption in low-income households and public buildings. It will also help lower electricity bills and cut down on greenhouse gas emissions by reducing power consumption and using refrigerants that contribute less to global warming.
Activities under the loan are in line with the updated version of Colombia’s Nationally Determined Contribution, the country’s framework governing greenhouse gas emissions. They also align with Colombia’s Long-Term Climate Strategy for Meeting the Paris Agreement (E2050).
About the IDB
The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and provides policy advice, technical assistance, and training to public- and private-sector clients throughout the region.
IDB Project Leader
Caribbean Sustainable Energy- Energy Efficiency Program - PEECES (CO-L1271).