The Colombian Ministry of Finance and Public Credits has submitted the draft Tax Reform Law for Equality and Social Justice, which is expected to raise COP25,000bn (US$5.8bn) in 2023. The proposal includes a carbon tax, which is set at COP20,500/tCO2eq (US$4.8/tCO2eq), corresponding to a taxation level of COP52,215/t (US$12.1/t) for coal, COP181/gallon (US$4.2c/gallon or US$1.1c/l) for gasoline and COP42/cm (US$1c/cm) for natural gas. The tax is expected to represent 0.02% of the national GDP.
In addition, the country plans to introduce a 10% tax on income earned from exports of oil and coal earned when each commodity exceeds a certain price threshold. The threshold would be set at US$48/bbl for oil and US$87/t for coal. In 2021, Colombia exported 499 kbl/d of crude oil (-10% compared to 2020) and 56 Mt of coal and lignite (-18%).
In its Nationally Determined Contribution (NDC) update (2020), Colombia pledged to cut greenhouse gas (GHG) emissions by at least 51% in 2030 compared to a BAU scenario. It is also committed to reducing black carbon emissions by 40% compared to 2014 levels. Since 2021, the country targets carbon neutrality by 2050. CO2 emissions from energy combustion increased by 47% (3.6%/year) between 2005 and 2016 and have been fluctuating since then between 70 and 80 MtCO2.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.