From oil and gas threats to solutions: What is at stake and what is the opportunity?

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Briefing Note

Introduction

President Gustavo Petro has demonstrated a commitment to steering Colombia’s economy away from fossil fuel dependence by halting new oil and gas drilling in his first two years in office. At COP28, Colombia endorsed the call for a Fossil Fuel Non-Proliferation Treaty, becoming the first large country and largest fossil fuel producing nation to do so. A few months prior, Colombia joined the Beyond Oil and Gas Alliance (BOGA). These commitments mark a pivotal moment in the nation's trajectory towards sustainable development. Simultaneously, they serve as a model of government leadership for a sustainable and just energy transition.

Colombia's portion of the Amazon Rainforest holds immense importance for global climate regulation and biodiversity conservation, serving as a vital carbon sink and habitat for countless species, while the Amazon as a whole plays a crucial role in stabilizing the Earth's climate and supporting a vast array of plant and animal life, making its preservation imperative for the health of the planet. Tropical forests cover 57% of Colombia’s territory (65 million hectares), the Amazon covers 44% (over 50 million hectares), and Indigenous Peoples (IPs), local communities (LCs), and Afro-descendents (ADs) lands are 36% (40.5 million hectares).  Colombia’s rich bio-cultural diversity remains under threat until firm measures, such as an oil and gas moratorium, are well-defined, established, and enforced.

In addition to Colombia's groundbreaking commitments, it is crucial to recognize the urgent need for global action to protect biodiversity and phase out oil and gas, during CBD COP16 and in the lead up to UNFCCC COP 30. The threats posed by fossil fuels to nature and climate demand swift and decisive responses from government leaders worldwide. President Gustavo Petro's leadership presents an opportunity for Colombia to lead by example in decarbonizing its economy and safeguarding biodiversity.

Furthermore, international financial institutions must play a pivotal role in supporting Colombia's efforts and similar initiatives worldwide. By providing substantial and accessible funding for nature conservation and the transition to a decarbonized economy, and away from the fossil fuel industry, the financial sector can help accelerate progress towards global climate and biodiversity goals (staying well below 2 °C and pursuing efforts to limit warming to 1.5 °C as well as protecting protect 30% of the world’s terrestrial, inland water, and coastal and marine areas by 2030) Together, Colombia's leadership and international financial support can catalyze a transformative shift towards a more sustainable and just future for all.

The magnitude of the threats and the scale of the opportunity:

Oil and gas expansion threats in Colombia are extensive:

• Onshore and offshore threats:
  • There are currently 124 million hectares of onshore and offshore oil and gas blocks in Colombia, including 59 million hectares of onshore oil and gas blocks and 65 million hectares of offshore blocks, meaning that nearly 52% of Colombia’s land area and 91% of marine area is covered by blocks.
• Nature and people directly threatened by the blocks:
  • 22 million hectares of tropical forest are under oil and gas blocks, including nearly 12 million hectares of Amazonian forests.
  • 13 million hectares of IPs, LCs, and ADs lands, over a third of all IPs, LCs, and ADs lands, are under oil and gas blocks.
• Status of the blocks:
  • 202 exploration permits cover 17 million hectares and 242 production licenses cover 2.5 million hectares
  • 64 million hectares or 52% of oil and gas blocks are still unassigned.
  • 40 million hectares of 32% of oil and gas blocks have been shelved.

Map 1. Colombia Oil and Gas Blocks

Extent of Current and Future Oil and Gas Threats in Colombia

Currently, there are 124 million hectares of onshore and offshore oil and gas blocks in Colombia. Over 65 million hectares of oil and gas blocks are located offshore, and the remaining 59 million hectares of blocks are onshore - 17.5 million hectares of which are within the Amazon. In Colombia, over half of oil and gas blocks, approximately 64.5 million hectares (or 52% of the total area under oil and gas blocks) are unassigned. Exploration blocks cover nearly 18 million hectares (14% of area), primarily onshore, and production blocks cover over 2 million hectares (2% of area), again primarily onshore. Additionally, there are currently less than 0.5 million hectares of production blocks (0.5% of area under oil and gas in the Amazon) and 2.5 million hectares (15 % of area) of exploration blocks within the Amazon.

Figure 1. Colombia, Onshore, Amazon and Offshore Oil and Gas Blocks

Threats of Oil and Gas in Colombia

Forests

Oil and gas threaten over 22 million hectares, or 34%, of Colombian tropical forests, an area comparable to the size of Finland. Nearly 12 million hectares of threatened forests are within the Amazon. Currently, less than 1 million hectares of tropical forest are under production blocks and 2.5 million hectares are under exploration blocks. 15.4 million hectares of threatened forest is under unassigned blocks and the final 4 million hectares of threatened forest is under shelved blocks.

Indigenous Peoples, Local Communities, and Afro-Descendants

13.7 million hectares of recognized and documented Indigenous peoples, local communities, and Afro-descendent lands intersect with oil and gas blocks, primarily along the Pacific coast and in the Amazon. Currently a third of IPs, LCs, and ADs lands are under oil and gas blocks. Less than 1 million hectares of this overlap is with production or exploration blocks. The threat to IPs, LCs, and ADs and their lands is largely a future threat that depends on the development of blocks that are currently unassigned since 11.4 million hectares, or approximately 28%, of all Colombian IPs, LCs, and ADs lands are under unassigned areas that could be licensed for future oil and gas exploration or production.

Protected Areas

In 2016 the IUCN made a declaration that called for no environmentally-damaging industrial activities or infrastructure, including oil and gas extraction, in IUCN-designated Protected Areas. Notably, although we find approximately 0.8 million hectares of overlap (nearly 5% of Protected Areas) with onshore protected areas (IUCN categories I-IV), this overlap is with recently shelved oil and gas blocks. These areas no longer appear as unassigned or available on the March 2024 Mapa de Tierras shared by Colombia’s National Hydrocarbon Agency but were designated as unassigned on previous releases, indicating that these areas have been shelved.

The National Hydrocarbon Agency’s decision to shelve these areas indicates important progress in removing extractive threats to Protected Areas, especially in the Amazon. However, since these now-shelved areas were previously identified as areas with potential for hydrocarbon extraction future developments should be monitored in order to avoid either blocks being reintroduced or Protected Area downgrading, downsizing, or degazettement (PADDD) that could allow for extractive activities.

Marine Ecosystems

Colombia’s oil and gas blocks pose a particular threat to marine ecosystems since they currently cover over 65 million hectares or 91% of Colombia’s offshore territory. 28.5 million hectares of Colombia’s offshore oil and gas blocks are currently unassigned, 4.1 million hectares are in the exploration phase, and approximately 80,000 hectares of blocks are in production. The key threat from offshore oil and gas development comes from the risk of oil spills, the impacts of which are not contained to the extent of the block or even Colombia’s legal waters and are therefore difficult to project. Indeed, although the direct overlap of oil and gas blocks with sensitive marine habitats such as coral reefs, mangroves and sea grasses is negligible, the threat to these ecosystems remains present due to their presence along the Colombian coast. Additionally, unassigned and shelved oil and gas blocks overlap with 11 million hectares of important marine mammal areas (IUCN MMPATF, 2023).

Marine oil and gas also poses a particular threat to fisheries and fishing communities, especially artisanal fisheries that are located along the coast. Along Colombia’s Pacific coast, unassigned oil and gas blocks are further from the coast and overlap minimally with artisanal fishing grounds. On the Caribbean coast, unassigned, exploration, and production blocks are closer to coastal communities and in some cases overlap with fishing areas, increasing the risk that oil spills will harm artisanal fishing grounds.

Figure 2.

Colombia’s commitments in the context of the threats - What is next?

Colombia’s commitments to move the economy away from fossil fuel dependence and halt new oil and gas contracts is of paramount importance, yet in order to materialize and implement such commitments the following measures must be considered:

Remove all unassigned oil and gas blocks 

In addition to Colombia's groundbreaking commitments, we applaud the de facto moratorium on new oil and gas exploration permits, a vital step in protecting biodiversity. However, this measure should be formalized to ensure its long-term permanence. All unassigned oil and gas blocks—covering 64 million hectares, or 52% of the country’s blocks—should be removed to address the pervasive threats to forests, marine ecosystems, communities, and the climate. This endeavor is both crucial and achievable, as these blocks have not yet been licensed for exploration or production.

In the very short term, under the current administration, all unassigned oil and gas blocks overlapping with the Amazon, representing 10.4 million hectares, should be removed in order to protect this important biome that has a vital role in climate regulation, biodiversity conservation and Indigenous rights. This would align with the 2018 Colombian Supreme Court ruling that recognized the Amazon rainforest as a rights-bearing entity and has the right to be protected, preserved, and restored. Establishing these protections is essential to securing a sustainable future for climate, nature and people.

These measures would also be in line with the intention to deal with the extraction of fossil fuels  in Colombia's National Determined Contribution due to be submitted for the UNFCCC COP 30 and Colombia’s commitment in the Belem Declaration to start a dialogue on the future of hydrocarbons in the Amazon.

Ensuring financial support

Leverage Colombia’s pioneering position in the international financial sector to unlock innovative financial mechanisms and strategies tailored to the local contexts to provide sufficient funding in support of alternative pathways. Colombia is currently proposing a $40 billion investment plan to transition away from fossil-fuels. The investment would go into activities like  nature-based solutions, payments for ecosystem services, debt relief, community-based finance, and financing for bioeconomy solutions. Other financial measures could include, shifting subsidies and financing away from extractive sectors, backed by legal frameworks to uphold primary forest conservation and Indigenous management and restoration.

Leveraging Colombia’s leadership regionally and internationally

Colombia’s leadership must be leveraged regionally and internationally to inspire other governments to urgently walk the same path. Colombia holds the potential to set a precedent as a fossil fuel non-proliferation nation and pave the way by forging alliances with other regional countries to designate the Amazon as a fossil fuel free zone. On the international stage, and maximizing the opportunities during CBD COP16 in Colombia and the UNFCCC COP 30 hosted by Brazil, Colombia must urge the global community and financial sector to actively support and facilitate overcoming barriers to fulfill such commitments, ensuring comprehensive implementation.

Communicating the scale of the opportunity and partner with relevant stakeholders

Continuing to communicate the scale of the opportunity presented by this commitment is crucial in garnering support and driving meaningful action at the local, regional and international level. By highlighting the importance of nature and climate solutions and its connection to a more sustainable and resilient economy, key stakeholders can be inspired to stand behind these critical initiatives. Additionally, emphasizing the positive impacts on public health, ecosystem services, and biodiversity conservation can resonate with a wide range of audiences and foster a sense of urgency for collective action and support.

Regional and global awareness and momentum is building; and bold leadership is needed.

A range of solutions and frameworks are referenced below that embody the need for both measured and accelerated action:

● The Belem Declaration, if sufficient and timely action is taken, can help avert the tipping point crisis that the Amazon basin is facing.

● A moratorium on all industrial activity in primary and priority forests until 2050 in order to safeguard people and planet, and allow time and space to develop appropriate financial system innovations, including adequate funding and payments for ecosystem services, debt relief, redirecting subsidies away from extractive industries, and to develop the legal mechanisms that support primary forest preservation and Indigenous co-management and restoration.

● Ensure worldwide Indigenous land tenure, access and resource rights, direct funding for Indigenous Peoples, Local Communities, and Afro-descendents management, restoration and , when applicable, co-management, with and the requirement of Free, Prior, and Informed Consent (FPIC) for IP, LC and ADs.

● Global financial architecture reforms that scale up financial resources towards climate action and the Sustainable Development Goals as uplifted by the Bridgetown Initiative

● The Amazonia for Life: 80% by 2025 Declaration from Amazonizan Indigenous organizations

● New debt for Climate and Biodiversity commitments from International Financial Institutions, such as the World Bank, International Monetary Fund (IMF) and multilateral development banks (MDBs), large debt-holding nations like China, and other debt holders in the private sector

● New frameworks for action including the 10-Point Plan for Financing Biodiversity

● Increased country-level commitments to the principles of the Beyond Oil and Gas Alliance and widespread commitments to the Fossil Fuel Non-Proliferation Treaty

● Unlocking the vast potential in renewables and scaling up direct support to forest communities and other frontline forest defenders.

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