[{"bbox": [147, 153, 397, 181], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [158, 198, 393, 224], "category": "Section-header", "text": "**Short problem analysis:**"}, {"bbox": [158, 236, 1073, 369], "category": "Text", "text": "The National Development Plan 2022-2026 has established a roadmap to ensure an inclusive, sustainable, environmental and social development. The influx of sustainable investment is a fundamental pillar, contributing to knowledge transfer, capital, and projects that enhance the country's competitiveness. Colombia has made progress towards sustainability, but important gaps still need to be filled to attract sustainable investment. These include the following:"}, {"bbox": [195, 381, 654, 408], "category": "List-item", "text": "**1. Lack of resources for sustainable investment**"}, {"bbox": [158, 420, 1073, 606], "category": "Text", "text": "Colombia has made strides towards sustainability, but significant gaps still need to be filled in sustainable investments. According to the OECD, the country ranks 10/17 in terms of preparation to face climate change. While investors are growing interested in environmentally friendly projects, there's still a lack of adequate financing mechanisms and incentives to stimulate sustainable investments at scale. Colombia's sustainable investment gap can be partially attributed to regulatory uncertainties, limited access to green financing, and insufficient investors' awareness of the potential long-term benefits of sustainability initiatives."}, {"bbox": [195, 618, 1073, 671], "category": "List-item", "text": "**2. Limited capacity for formulating and structuring quality and environmentally sustainable projects and tenders.**"}, {"bbox": [158, 683, 1073, 818], "category": "Text", "text": "One of the main obstacles to financing is the lack of quality in formulating investment projects, from their structuring to their technical and financial viability. In addition, many tenders for large infrastructure works in Colombia are based solely on price criteria. Quality, environmental sustainability, and respect for labour rights are not considered. These tender criteria limit European companies' bids' competitiveness and compromise the projects' sustainability."}, {"bbox": [195, 829, 949, 857], "category": "List-item", "text": "**3. Weak public-private sector coordination to ensure efficient use of resources.**"}, {"bbox": [158, 867, 1073, 999], "category": "Text", "text": "There's a need for enhanced collaboration between the public and private sectors to develop innovative financial instruments and policies that encourage sustainable investments across various sectors of the economy. In addition, a continuous dialogue between the European and Colombian private sector and the Colombian public sector is essential to promote the necessary regulatory reforms in critical sectors for sustainable investment."}, {"bbox": [158, 1012, 1073, 1172], "category": "Text", "text": "According to the World Economic Forum's Global Competitiveness Report, Colombia ranks below the global average regarding ease of doing business, primarily due to cumbersome administrative procedures and inadequate infrastructure (World Economic Forum, 2022). Working with private and public stakeholders is of key importance since Public-Private Partnership (PPP) projects face tremendous challenges to success. According to the Private Council for Competitiveness, 65% of PPPs have been rejected, withdrawn, failed, or declared void."}, {"bbox": [195, 1184, 876, 1212], "category": "List-item", "text": "**4. Uncertainty in legal, regulatory, and practical investment conditions**"}, {"bbox": [158, 1223, 1073, 1381], "category": "Text", "text": "Among the important lessons learned is that uncertainty in legal, regulatory, and practical investment conditions systematically weakens the flow of foreign and domestic investment in Colombia, resulting in fewer investment opportunities for EU companies. Colombia's sustainable investment gap can be partially attributed to regulatory uncertainties. While investors are growing interested in environmentally friendly projects, there is still a lack of adequate financing mechanisms and incentives to stimulate sustainable investments at scale."}, {"bbox": [158, 1395, 1073, 1475], "category": "Text", "text": "To address these challenges, Colombia must prioritise reforms aimed at streamlining regulatory processes, enhancing transparency, creating incentives, reducing costs and risks, and fostering a more conducive business environment to spur economic growth and attract investment."}, {"bbox": [195, 1487, 739, 1515], "category": "List-item", "text": "**5. Low institutional capacity in investment-related areas**"}, {"bbox": [158, 1526, 1073, 1606], "category": "Text", "text": "The Colombian Government's lack of capacities presents a significant obstacle to achieving tangible results and fostering transformative change towards sustainable growth. Public administration exhibits a high rotation of staff, including high-ranking officials and ministers, which slows the"}, {"bbox": [966, 1640, 1081, 1667], "category": "Page-footer", "text": "Page 7 of 21"}]