## Section I. Summary of Mission Outcomes and Priority Recommendations ## Source details **Canonical URL:** [Section I. Summary of Mission Outcomes and Priority Recommendations](https://www.imf.org/-/media/files/publications/tar/2024/english/tarea2024095-print-pdf.pdf) ## Other formats - [Markdown version](/-/media/files/publications/tar/2024/english/tarea2024095-print-pdf.pdf.md) - [Structured JSON version](/-/media/files/publications/tar/2024/english/tarea2024095-print-pdf.pdf.json) --- ### Mission objective and context - Diagnostic mission conducted during July 17–21, 2023 to develop a roadmap to guide the enhancement on the compilation of climate statistics for Colombia to address policy needs for data. - Mission conducted under the auspices of the Swiss State Secretariat for Economic Affairs (SECO) funded Environment and Climate Change Statistics Capacity Development Program. - Program is a two-year project with the objective to assist countries in developing timely and internationally comparable statistics to support the design and monitoring of policies to address the environmental, financial, economic, and social implications associated with climate change. ### Stakeholder engagement and participation - Plenary and bilateral sessions held with key national stakeholders representing data compilers and users to take stock of existing work, capacity development initiatives, policy needs, available data and data gaps. - Participating agencies included: - National Administrative Department of Statistics (DANE) - Central Bank (BANREP) - Ministry of Environment and Sustainable Development (MADS) - Ministry of Finance and Public Credit (MHCP) - Ministry of Energy and Mines (MME) - National Department of Planning (DNP) - Ministry of Trade, Industry and Tourism (MINCIT) - National Unit of Disaster Risk Management (UNGRD) - Institute of Hydrology, Meteorology and Environmental Studies (IDEAM) - Diorama Consulting - SECO representative in Colombia ### National commitments and legal framework - Colombia's climate policy framework includes: - Law N° 1931 (2018) establishing guidelines for climate change management. - Climate Action Law (2169) approved in 2021 establishing goals and minimum measures to reach carbon neutrality. - DANE commits to developing integrated environmental and economic information and regularly compiles and disseminates selected accounts of the System of Environmental-Economic Accounting (SEEA). ### Priority statistical developments identified - Most feasible near-term developments: - Enhancements to the SEEA energy and emissions flow accounts. - Mineral and energy asset accounts. - Development of domestic carbon footprints. - Specific needs noted by DANE: - Express the assets accounts in monetary values. - Compile carbon footprints for Colombia. - Derive the energy flow accounts in monetary terms. - Enhance coverage of flow emission accounts to include emissions from agriculture, land use change, industrial processes, and waste. - DANE plans to start a feasibility assessment to develop the ecosystem accounts in the near future. ### Secondary priorities and data product enhancements - Compilation of a series of environmental activity indicators/accounts (source data largely available). - Required enhancements: - Improved classification and more detailed record of government “environmental” transactions. - More granular framework to benefit analytical use. - Interest in physical and transition risk indicators and exploring geo-spatial tools for sub-national information. ### Resource constraints - Priority statistics build on existing infrastructure but additional resources required for successful completion. - Environment statistics unit at DANE noted difficulty to undertake new initiatives with current dissemination commitments unless new human resources are made available. - Authorities committed to providing additional resources as an assessment is made by the unit. ### Priority recommendations (with target dates and responsible institution) - December 2024 — Mineral and energy asset accounts – Monetary values — DANE - December 2024 — National Footprints — DANE - December 2024 — Energy flow accounts – Monetary values — DANE - December 2024 — The Air Emission Accounts - including agriculture, the change of land use, industrial processing, and waste — DANE ### Institutional feedback and coordination needs - DANE - Underscored critical need to implement the SEEA, both Central Framework and Ecosystem Accounts, and develop climate change information in line with international statistical standards. - Committed to advocating for a coordinated action plan and to compile an inventory of existing climate-related data sources (including periodicity and data quality) to identify overlaps, gaps, and develop a data sharing protocol. - Plans to start feasibility assessment to develop ecosystem accounts. - Ministry of Mines and Energy (MME) - Highlighted need for interinstitutional coordination and international collaboration (SECO, UNSD, ECLAC). - Reported collaboration with the National Agency of Mining and hydrocarbons and UPME for data for mineral and energy asset accounts; compilation of energy balances; ongoing work on private environmental protection expenditures. - Noted human resource constraints and difficulties establishing direct contact with firms for climate data; need for more fluid dialogue with DANE and possible additional financial resources. - National Planning Department (DNP) - Stressed data sharing, accessibility, and dissemination; proposed task team embodying "Information is for all". - Mandate and activities include Transformation of Land Use Planning, Regional Convergence, Decarbonization monitoring, Financing Sustainable Development, and Indicators expansion. - Work on Natural Capital, valuation and management of water resources, collaboration with Natural Capital Project and use of InVEST software, partnership with Stanford University, and contribution to TERRIDATA. - Ministry of Finance and Public Credit (MHCP) - Emphasized methodological rigor and tailoring statistical exercises to end-user requirements without duplication. - Climate data needs identified for green taxes, climate-related expenditures, monitoring plastics and carbon taxes, and subsidies. - MHCP leads development of taxonomy and methodological framework for capturing climate change-related data in the private sector and is interested in using data to design fiscal schemes including carbon taxation and estimating potential revenue and regional distribution. - Ministry of Environment and Sustainable Development (MADS) - Mandate includes inventory and monitoring of GHG emissions and forest area measurement. - Emphasized coordination, participatory approaches, and efficiency in resource use; referenced MAPEO tool and recommended establishing an official platform dedicated to climate change information with free access. - Ministry of Commerce, Industry, and Tourism (MINCIT) - Recommended integrating climate data into tourism planning and policy, capacity building, and use of MAPEO and meteorological collaboration. - Suggested SECO project support for regional forward looking physical risks indicators. - Colombia’s Central Bank (BANREP) - BRC research center in Cali uses climate data in micro-econometric partial equilibrium analyses within agriculture; focuses on effects of climate change on agricultural productivity and food prices, public information infrastructures, assisting Banco Agrario, and geo-spatial contributions to manufacturing. - Interest in spatially explicit econometric analyses and potential engagement with Macro team in BRC Bogotá for economy-wide analyses. - IDEAM and UNGRD - IDEAM compiles national carbon inventory aligned with IPCC; latest publication in 2021 presents data up to the year 2018 covering eight sectors and includes carbon mapping in forests. - IDEAM contributes data related to the "Balance Energetico Colombiano"; data publicly available online and shared with DANE. - Noted need for broader awareness of SEEA and enhanced inter-agency dialogue. - UNGRD emphasized importance of local decisions based on locally sourced data for disaster risk management. ### Activities and immediate outputs - DANE will participate in training activities organized by STA. - A follow-up mission will take place after the training to start developing the statistical products identified as a priority during this mission. ### Conclusions, priorities, and recommendations - Agreed key priorities: - Develop monetary assets accounts and domestic carbon footprints. - Enhance the SEEA energy and emissions flow accounts. - Specific objectives for DANE: - i) express the assets accounts in monetary values, and - ii) derive the carbon footprints for Colombia. - DANE interest in expressing energy flow accounts in monetary terms and enhancing coverage of flow emission accounts to include emissions from agriculture, land use, industrial processes, and waste. ### Mineral and Energy Asset Accounts (summary findings) - Broad agreement on importance given anticipated energy transition and implications for natural resource use and changes in value affecting public and private income. - DANE currently compiles physical accounts; priority is development in monetary terms; longer-term plan includes ecosystem accounting. - Accounts present physical and monetary values of natural resource wealth and changes (extraction, holding gains and losses, depletion); methodology developed in SEEA and System of National Accounts 2008. - Mineral accounts can be developed using national accounts and data on stock and reserves. ### Carbon Footprints (summary findings) - Compilation of Air Emissions Accounts and updated IOTs will facilitate carbon footprints (direct and indirect emissions by resident establishments from production, consumption, and accumulation). - Carbon footprints broken down by output industry and contributing industries and by demand category – final consumption, investment, and exports; generally presented as annual estimates. - Policy uses: identification of high versus low emitting industries and consumption of products resulting in high emissions. - Main source data required: - Input-output tables, - Direct measures of emissions, and/or - Air Emissions Accounts. ### Other priorities - Environmental Government Revenues by Type: - Potential to compile environmental government revenues by type (revenues through management and protection of natural resources and levying environmental taxes). - Revenues likely impacted by transition away from fossil fuels; Lithium reserves may positively impact GDP and government revenues. - Data will help monitor changes in government revenue streams as climate policies are adopted. - Forward Looking indicators of Physical and Transition Risk Indicators. ### Key data availability points (as presented) - Air (GHG) Emission Accounts: 2021 - National Inventories (UNFCCC): 2004 - National Carbon Footprints: No - Energy Flow Accounts: 2022 - Energy Statistics: Yes - Environmental Activity Accounts/ Environmental Expenditures: Underway - Mineral and Energy Asset Accounts (quantity): 2022 ### Assessment of forward-looking physical and transition risk indicators - Objective: develop forward looking physical and transition Risk indicators to quantify potential impacts of climate hazards on physical structures and populations and impacts of mitigation strategies on business income and financial markets. - Methodological guidance still under development; models by Network for the Greening of Financial System (NGFS) cited as examples to standardize models and pathways. - Indicators will focus on estimating loss measured in terms of: - income, - asset values, and - populations, arising from climate hazards (storms, drought, flooding, sea level rise) and from mitigation policies such as carbon pricing. - Work could be envisaged as a data stewardship component using statistics from international databases. - Compilation of carbon footprint would support preparation of a carbon pricing model to assess impacts such as impact of a carbon tax on inflation. ### Air Emissions Accounts (deliverable summary) - Priority to develop a more comprehensive set of air emissions accounts. - Current accounts available in physical terms include a subset of pollutants. - DANE intends to expand pollutants, increase industry detail, and reduce compilation lag. - Policy use: tracking progress to a low carbon economy. - Coordination across government institutions crucial for data production, dissemination calendars, and working processes. ### Environmental Activity Accounts (deliverable summary) - Environmental activity accounts cover expenditures primarily to reduce or eliminate environmental pressures or improve resource efficiency. - Environmental goods and services accounts inform on contribution of environmental activities to the economy. - Environmental expenditures (public and private) inform resource requirements for mitigation and adaptation policies. - Expenditures categorized as: - Environmental Protection Activities, and - Resource Management Activities. - Many environmental transactions require disaggregation from total expenditures recorded in core national accounts. - Technical assistance to focus on incorporating additional breakdowns into national accounts and re-aggregating estimates to produce: - environmental protection expenditure accounts, - resource management expenditure accounts, and - environmental goods and services accounts. ### Coordination and governance - DANE should lead coordination and promote collaboration between agencies. - A technical coordinating group will include key stakeholders and be chaired by DANE. - Meetings to be held as needed. ### Appendix — Methodological overview of deliverables (training topics) - Air Emissions - Air emissions derived from emission inventories and economic aggregates obtained from the SUTs. - Carbon footprints - Derived by combining emissions by industry with economic multipliers and final demand estimates from the IOTs. - Specific emissions intensities should be used for imports depending on the country of origin; requires complex multi-regional input-output models available from international organizations. - If multi-regional input-output models are not used, all imports would have to be considered with the same emissions intensities which is incorrect. - A simple approach based on similar intensities regardless of the country of origin might be acceptable as a first estimate. - Environmental Economic Accounts - Estimates of activities contributing to environmental protection and resource management can be extracted from SUTs which provide production, value added and income components by industry. - These activities may be estimated from SUTs, possibly using ratios because SUTs have 98 industries. - Mineral and Energy Assets Accounts - Indicators for measuring macroeconomic impact of natural resources on production, income, labor, terms of trade, etc. can be derived from the SUTs. - Environment Government Revenues by Type - Categories presented: - a. taxes on energy (including fuel for transport) - b. taxes on transport (excluding fuel for transport) - c. taxes on pollution - d. taxes on resources *IMF | Technical Assistance Report – Colombia Climate Change Statistics — Section I. Summary of Mission Outcomes and Priority Recommendations* ### Section I. Summary of Mission Outcomes and Priority Recommendations ......................................... 3 ### Section I. Summary of Mission Outcomes and Priority Recommendations ### Mission objective and context - A diagnostic mission was conducted during July 17–21, 2023, to develop a roadmap to guide the enhancement on the compilation of climate statistics for Colombia to address policy needs for data. - The mission was conducted under the auspices of the Swiss State Secretariat for Economic Affairs (SECO) funded Environment and Climate Change Statistics Capacity Development Program. - The program is a two-year project with the objective to assist countries in developing timely and internationally comparable statistics to support the design and monitoring of policies to address the environmental, financial, economic, and social implications associated with climate change. ### Stakeholder engagement and participation - Discussions were conducted during plenary and bilateral sessions with key national stakeholders representing data compilers and users to take stock of work already undertaken, ongoing capacity development initiatives, policy needs, available data and data gaps. - Participating agencies included: - National Administrative Department of Statistics (DANE) - Central Bank (BANREP) - Ministry of Environment and Sustainable Development (MADS) - Ministry of Finance and Public Credit (MHCP) - Ministry of Energy and Mines (MME) - National Department of Planning (DNP) - Ministry of Trade, Industry and Tourism (MINCIT) - National Unit of Disaster Risk Management (UNGRD) - Institute of Hydrology, Meteorology and Environmental Studies (IDEAM) - Diorama Consulting - SECO representative in Colombia ### National commitments and legal framework - Colombia is strongly committed to climate change policies as reflected on the Law N° 1931 (2018) which established guidelines for climate change management, including actions to adapt to climate change and mitigate greenhouse gases emissions, reducing vulnerability and promoting transition towards a competitive, sustainable economy and low-carbon development. - A Climate Action Law (2169) was approved in 2021, which establishes goals and minimum measures to reach carbon neutrality. - DANE is committed to developing integrated environmental and economic information and regularly compiles and disseminates selected accounts of the System of Environmental-Economic Accounting (SEEA). ### Priority statistical developments identified - Most feasible near-term developments: - Enhancements to the SEEA energy and emissions flow accounts. - Mineral and energy asset accounts. - Development of domestic carbon footprints. - Specific needs noted by DANE: - Express the assets accounts in monetary values. - Compile carbon footprints for Colombia. - Derive the energy flow accounts in monetary terms. - Enhance coverage of flow emission accounts to include emissions from agriculture, land use change, industrial processes, and waste. - DANE plans to start a feasibility assessment to develop the ecosystem accounts in the near future. ### Secondary priorities and data product enhancements - Compilation of a series of environmental activity indicators/accounts (source data largely available). - Required enhancements include improved classification and more detailed record of government “environmental” transactions and a more granular framework to benefit analytical use. - Interest expressed by agencies in physical and transition risk indicators, including exploring geo-spatial tools for sub-national information. ### Resource constraints - While priority statistics build on existing infrastructure, additional resources are required for successful completion. - The environment statistics unit at DANE noted that with current dissemination commitments, it would be difficult to undertake new initiatives unless new human resources are made available. - Authorities committed to providing additional resources as an assessment is made by the unit. ### Priority recommendations (with target dates and responsible institution) - December 2024 — Mineral and energy asset accounts – Monetary values — DANE - December 2024 — National Footprints — DANE - December 2024 — Energy flow accounts – Monetary values — DANE - December 2024 — The Air Emission Accounts - including agriculture, the change of land use, industrial processing, and waste — DANE ### Additional mission observations - The mission met with key national stakeholders to identify policy priorities and related climate change and environmental statistics data needs, and to take stock of existing statistics and ongoing capacity development initiatives. - DANE has a unit within the National Accounts Directorate that works on Alternative Concepts Satellite Accounts, responsible for developing new experimental accounts. - Colombia participated in the WAVES initiative in 2010 and has been reporting statistics according to the Central Framework on an annual basis expressed in physical terms; DANE is pursuing implementation of SEEA-Ecosystem Accounts (EA). - Colombia’s governance framework for public policy, including climate change, is anchored in the National Council of Economic and Social Policy (CONPES). Examples of climate-related CONPES policies include: - Green Growth Policy (3934) - National Policy for the Control of Deforestation and Sustainable Forest Management (4021) - Public Policy to reduce disaster risk conditions and adapt to climate variability phenomena (4058) - SECO is open to contemplating the establishment of a Centre of Excellence focused on climate statistics, leveraging Colombian expertise for south-south cooperation and regional support. - DANE is positioned to play a pivotal strategic role in development and strengthening of environment and climate change statistics and could lead a pilot project and support other LAC countries in implementing environmental accounts. *IMF | Technical Assistance Report – Colombia Climate Change Statistics — Section I. Summary of Mission Outcomes and Priority Recommendations* ### 21. DANE closed the meeting underscoring the critical need to implement the SEEA, both ### tarea2024095-print-pdf - 21. DANE closed the meeting underscoring the critical need to implement the SEEA, both ### Institutional feedback and coordination needs - DANE: - Underscored the critical need to implement the SEEA, both Central Framework and Ecosystem Accounts, and develop climate change information in line with international statistical standards. - Committed to advocating for a coordinated action plan to enhance collaboration among institutions. - Agreed to compile an inventory of existing data sources related to climate change available in various government agencies, including the periodicity of data collection and data quality, to identify overlaps and data gaps and develop a strategy and an agreed data sharing protocol. - Plans to start a feasibility assessment to develop the ecosystem accounts in the near future. - Ministry of Mines and Energy (MME): - Expressed appreciation for detailed presentations and highlighted the need for interinstitutional coordination and international collaboration; cited the SECO project and potential partnerships with UNSD and ECLAC. - Noted strong demand for climate change data to inform adaptation and ecological/energy transitions; highlighted the concept of "Justica Climatica" (Climatic Justice) and the execution of Climate Action Plans at the sectoral level. - Emphasized private sector involvement as part of a multi-stakeholder process. - Reported ongoing initiatives: collaboration with the National Agency of Mining and hydrocarbons and with the Energy Planning Unit (UPME) to obtain data for mineral and energy asset accounts; compilation of energy balances (input to energy accounts); ongoing work on private environmental protection expenditures. - Highlighted human resource constraints in statistical areas, difficulty for compilers to establish direct contact with firms for climate change data, and the need for more fluid dialogue with DANE and possible additional financial resources. - National Planning Department (DNP): - Stressed importance of data sharing, accessibility, and dissemination; proposed establishment of a task team embodying "Information is for all" dedicated to broader and more effective dissemination. - Outlined mandate and inter-sectoral activities including: - Transformation of Land Use Planning: impact of climate change on water availability and risks to agriculture. - Regional Convergence: role in National Development Plan, effects on income/wealth distribution; disproportionate adverse impacts on native and rural female populations. - Decarbonization: monitoring in alignment with international commitments like the Paris Agreement. - Financing Sustainable Development: lack of data to inform targeted financial interventions and prioritization of finance for regional convergence and climate migration. - Indicators: need to expand and refine indicators and foster private sector collaboration. - Noted DNP’s work on Natural Capital, valuation and management of water resources, collaboration with the Natural Capital Project and use of InVEST software, partnership with Stanford University, and contribution to TERRIDATA (platform on "Ordenamiento Territorial"). - Ministry of Finance and Public Credit (MHCP): - Emphasized methodological rigor and tailoring statistical exercises to end-user requirements without duplicating efforts. - Identified climate change data needs for green taxes, climate-related expenditures, monitoring of plastics and carbon taxes, and subsidies; emphasized communication with public sector to identify sectors most affected and costs of emission reductions. - Highlighted MHCP leadership in developing taxonomy and methodological framework for capturing climate change-related data in the private sector; interest in investments in green transportation and designing fiscal schemes using compiled climate change data including carbon taxation and estimating potential revenue and regional distribution. - Ministry of Environment and Sustainable Development (MADS): - Stressed mandate includes climate change data needs, overall inventory and monitoring of GHG emissions, and detailed measurement and inventory of forest areas. - Emphasized coordination, participatory approaches, efficiency in resource use to avoid duplication, and referenced the MAPEO tool as valuable for managing climate change data and governance issues. - Recommended establishing an official platform dedicated to climate change information with free access to all; suggested broader regional and international articulation including donors and international organizations. - Ministry of Commerce, Industry, and Tourism (MINCIT): - Recommended strategic steps to integrate climate data into tourism: assess climate impacts on destinations, comprehensive data collection (including meteorological collaboration and MAPEO), use data to inform policy and investment for mitigation and adaptation, promote sustainable tourism infrastructure and off-season tourism, and develop climate-resilient tourism products. - Identified need for capacity building: targeted training programs, partnerships with academic institutions and international organizations, repository of learning resources, and culture of continuous learning. - Suggested the SECO project could support development of regional forward looking physical risks indicators. - Colombia’s Central Bank (BANREP): - Banco de la República Colombia (BRC) research center in Cali uses climate data in micro-econometric partial equilibrium analyses within the agricultural sector; source of climate data used was not explicitly detailed (although from DANE). - Center focuses on effects of climate change on agricultural productivity and food prices, development of public information data infrastructures, assisting Banco Agrario for disbursement decisions, and contributing geo-spatial information to the manufacturing industry. - Has econometric tools for agricultural sector and panel data; interest in spatially explicit econometric analyses but area not fully developed. Lacks experience in economy-wide induced effects of climate change using general-equilibrium or CGE models; suggested engagement with Macro team in BRC Bogotá for comprehensive analysis. - Instituto de Hydrology, Meteorology, and Environmental Studies (IDEAM) and UNGRD: - IDEAM (within MADS) compiles a national carbon inventory aligned with IPCC; latest publication in 2021 presents data up to the year 2018, covering eight different sectors and including carbon mapping in forests. - IDEAM contributes data related to the "Balance Energetico Colombiano" (Colombian Energy Balance); all publicly available online and shared with DANE. - Noted need for broader awareness of climate-related initiatives and of the SEEA; difficulty gathering data from original sources and desire for enhanced inter-agency dialogue; recognition of DANE’s potential coordination role. - UNGRD underscored the importance of local decisions based on locally sourced data for disaster risk management. ### Activities and immediate outputs - DANE participation: - DANE will participate in the training activities organized by STA. - A follow-up mission will take place after the training to start developing the statistical products identified as a priority during this mission. ### Conclusions, priorities, and recommendations - Agreed key priorities: - Develop monetary assets accounts and domestic carbon footprints. - Enhance the SEEA energy and emissions flow accounts. - Specific needs and objectives: - DANE currently compiles energy and emissions flow accounts in physical terms; needs to: - i) express the assets accounts in monetary values, and - ii) derive the carbon footprints for Colombia. - DANE has strong interest in expressing the energy flow accounts in monetary terms and enhancing coverage of flow emission accounts to include emissions from agriculture, land use, industrial processes, and waste. - Mineral and Energy Asset Accounts: - Broad agreement on importance given anticipated energy transition and repercussions for natural resource use and changes in value affecting public and private income. - DANE compiles these accounts in physical terms; priority is to develop them in value terms; longer-term plan includes developing ecosystem accounting. - Mineral and Energy Asset Accounts present physical and monetary values of natural resource wealth and changes (extraction, holding gains and losses, depletion); methodology well developed in SEEA and System of National Accounts 2008. Mineral accounts can be developed using national accounts and data on stock, reserves. - Carbon Footprints: - Compilation of Air Emissions Accounts and updated IOTs will facilitate compilation of carbon footprints (direct and indirect emissions by resident establishments from production, consumption, and accumulation processes). - Carbon footprints are broken down by output industry and contributing industries and by demand category – particularly final consumption, investment, and exports; generally presented as annual estimates. - Policy uses include identification of high versus low emitting industries and consumption of products resulting in high emissions. - Main source data required to produce carbon footprints include: - Input-output tables, - Direct measures of emissions, and/or - Air Emissions Accounts. - Other priorities: - Environmental Government Revenues by Type: - Potential for compiling environmental government revenues by type (revenues through management and protection of natural resources and levying environmental taxes). - Revenues likely impacted by transition away from fossil fuels; Lithium reserves may positively impact GDP and government revenues. - These data will help monitor changes in government revenue streams as climate mitigation and adaptation policies are adopted. - Environmental revenues by type are outlined in Government Finance Statistics Manual 2014, System of National Accounts 2008, and System of Economic and Environmental Accounting. - Forward Looking indicators of Physical and Transition Risk Indicators. ### Key data availability points (as presented) - Air (GHG) Emission Accounts: 2021 - National Inventories (UNFCCC): 2004 - National Carbon Footprints: No - Energy Flow Accounts: 2022 - Energy Statistics: Yes - Environmental Activity Accounts/ Environmental Expenditures: Underway - Mineral and Energy Asset Accounts (quantity): 2022 *IMF | Technical Assistance Report – Colombia Climate Change Statistics* ### 53. Participants in the plenary sessions also prioritized an assessment of the potential to ### Participants in the plenary sessions also prioritized an assessment of the potential to ### Assessment of forward-looking physical and transition risk indicators - Develop forward looking physical and transition Risk indicators which quantify the potential impact that climate hazards can have on physical structures and populations as well as the impact climate mitigation strategies can have on business income and financial markets. - Methodological guidance on physical and transition risk indicators is still being developed; significant progress has been made over the last number of years (e.g., models developed by the Network for the Greening of Financial System (NGFS)), to standardize the models and pathways that support the compilation of these indicators. - Indicators will focus on estimating loss measured in terms of: - income, - asset values, and - populations, arising from climate hazards like rising storms, drought conditions or flooding caused by rising sea levels and those arising from climate mitigation policies such as carbon pricing. - Work in this area could be envisaged as a data stewardship component using statistics readily available from international databases. - The compilation of carbon footprint would support preparation of a carbon pricing model to assess impacts such as the impact of a carbon tax on inflation. ### Air Emissions Accounts - Priority to develop a more comprehensive set of air emissions accounts. - Current accounts are available in physical terms and include a subset of pollutants. - DANE intends to further develop air emissions, expanding the current pollutants, the industry detail, and to reduce the lag in the compilation. - Policy uses: tracking progress to low carbon economy is the most important use. - Coordination is crucial across government institutions for data production, dissemination calendars, and working processes so all institutions involved can work in tandem. ### Environmental Activity Accounts - Environmental activity accounts include expenditures whose primary purpose is to reduce or eliminate pressures on the environment or to make more efficient use of natural resources. - Environmental goods and services accounts can inform on the contribution of environmental activities on the economy by identifying these activities related to the environment. - Estimates of environmental activity expenditures (both public and private) can be used to understand the level of resources required to develop policies to mitigate the economic risk associated with climate change. - Environmental expenditures can be broken down into two main categories: - Environmental Protection Activities, and - Resource Management Activities. - Most environmental transactions need to be disaggregated from the total expenditures recorded within the core national accounts framework. - Technical assistance would focus on incorporating additional breakdowns into existing national accounts statistics and re-aggregating estimates of output, intermediate consumption and value added to produce: - environmental protection expenditure accounts, - resource management expenditure accounts, and - environmental goods and services accounts. ### Coordination - DANE should play a coordination role and promote collaboration between agencies participating in this project. - A technical coordinating group will include key stakeholders and be chaired by DANE. - Meetings will be held as needed. ### Appendix — Methodological overview of deliverables - Basic training was provided by the mission on the following deliverables. 1. Air Emissions - Air emissions are derived from emission inventories and economic aggregates obtained from the SUTs. 2. Carbon footprints - Derived by combining emissions by industry with economic multipliers and final demand estimates from the IOTs. - Specific emissions intensities should be used for imports depending on the country of origin; this requires complex multi-regional input-output models which are available from international organizations. - If multi-regional input-output models are not used, all imports would have to be considered with the same emissions intensities which is incorrect. - A simple approach based on similar intensities regardless of the country of origin might be acceptable as a first estimate. 3. Environmental Economic Accounts - Relevant estimates of activities contributing to environmental protection activities and resource management activities can be extracted from SUTs which provide production, value added and income components by industry. - These activities should be estimated from SUTs, possibly using ratios because of the level of aggregation (SUTs have 98 industries). 4. Mineral and Energy Assets Accounts - Indicators for measuring macroeconomic impact of natural resources on production, income, labor, terms of trade, etc. can be derived from the SUTs. 5. Environment Government Revenues by Type - The following categories are presented: - a. taxes on energy (including fuel for transport) - b. taxes on transport (excluding fuel for transport) - c. taxes on pollution - d. taxes on resources *IMF | Technical Assistance Report – Colombia Climate Change Statistics* --- _Source: https://www.imf.org/-/media/files/publications/tar/2024/english/tarea2024095-print-pdf.pdf_