In Colombia, a regulation has been set regarding payments for environmental services for peace. This was achieved after the recent issuance of Decree 1998 on November 21, 2023, in line with Article 224 of Law 2294 from 2023 (National Development Plan 2022-2026). The Colombian Ministry of Environment and Sustainable Development defined these payments as an economic incentive, in cash or in kind.
The growth and acceptance of such incentivisation schemes have been notable over the years, marking a significant shift in the country’s strategic approach towards environmental sustainability and peace. The new decree regulates and highlights the importance of compensating for environmental services that contribute to peace and the sustainable development of the nation.
The implementation of this new rule is timely, given the increasing global focus on sustainability, environmental consciousness, and peace. However, it also presents several implications to consider for corporations and law firms. How these new regulations are received and adapted into their existing compliance and governance frameworks will be crucial.
Adapting to these new regulations will require an understanding of the precise definitions of ‘payments’, ‘environmental services’, and ‘peace’ as outlined in the law. Companies and law firms must position themselves to comply with these regulations effectively and potentially leverage them as part of their corporate social responsibility (CSR) initiatives.
For more detailed information on this regulation, refer to the full article by Holland & Knight LLP.