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Good practice

Colombia National Payment for Environmental Services Program (PSA)

Colombia · Bogotá · See the Colombia profile

Colombia's Decreto-Ley 870/2017 created a national legal framework paying landowners to conserve páramos, forests and wetlands; by 2024 government figures reported ~743,000 ha ever enrolled (157,637 ha currently active) across 214 projects and 8,771 families in 19 departments.

743,000 hectares (approx., 74.3% of 2030 goal)
Cumulative hectares registered since 2017 (2017-2024)
157,637 hectares
Active hectares under current projects (2024)
214 projects
Currently active projects (2024)
8,771 families
Families benefiting (2024)
441 COP billion
Total public/private funds mobilized since 2017 (2017-2024)
144,502 hectares
Hectares newly conserved in 2021 (2021)
260,110 hectares (vs 196,000 ha target)
Cumulative conservation vs. 2018-2022 development plan target (2018-2022)
1,000 hectares (approx.)
Bogota sub-national programme area (n/a)
0.18 %
Indigenous share of active beneficiaries (2024)
Colombia National Payment for Environmental Services Program (PSA)

Details

Maturity
Scaling
Promoter
Ministerio de Ambiente y Desarrollo Sostenible (MADS)
Period
2017-present
Keywords
watershed protection, biodiversity conservation, climate mitigation, agri-environment, national law

Context

Colombia's national Payment for Environmental Services Program (Programa Nacional de Pago por Servicios Ambientales, PSA) was created by Decreto-Ley 870 of 25 May 2017, upheld by the Constitutional Court in ruling C-644 of 2017, and later regulated in detail by Decreto 1007 of 2018. The Ministry of Ambiente y Desarrollo Sostenible (MADS) sets national policy, while regional environmental authorities (Corporaciones Autonomas Regionales), municipal environment secretariats and National Natural Parks administer agreements on the ground across four modalities: water regulation and quality, biodiversity conservation, greenhouse-gas reduction/capture, and cultural-spiritual-recreational services. A 2023 amendment (Decreto 1998) added a track for collective and ancestral territories.

Objectives

Pay landowners to conserve paramos, forests and wetlands, working toward a 2030 national goal of 1,000,000 hectares registered.

Activities

The programme mobilised roughly COP441 billion (public and private) since 2017 across 503 projects. A sub-national implementation in Bogota — financed by the Bogota Environment Secretariat with UNDP's Biodiversity Finance Initiative (BIOFIN) — placed roughly 1,000 hectares of paramo, forest and wetland under 41 conservation agreements across 62 properties, framed explicitly as protecting the water supply of the city's roughly 7.9 million residents.

Results

About 743,000 hectares have been registered cumulatively (74.3% of the 2030 goal). A 2024 snapshot found 157,637 hectares under 214 currently active projects, benefiting 8,771 families across 19 departments and 121 municipalities. In 2021 alone the programme reported 144,502 hectares newly conserved and 3,738 additional families enrolled, a year in which cumulative conservation (260,110 ha) exceeded Colombia's 2018-2022 National Development Plan target of 196,000 hectares by a third.

Conclusions

Ethnic and Indigenous participation lags far behind stated priorities: as of 2024 only 0.18% of active beneficiaries were Indigenous, attributed to a structural mismatch between PSA's individual-landowner payment logic and the collective governance of ancestral territories, only partly addressed by the 2023 decree. There is also a large, unreconciled gap between the ~743,000 hectares registered since 2017 and the ~157,637 hectares still active in 2024, implying substantial attrition of agreements over time. No independent, peer-reviewed evaluation of the national programme's environmental outcomes was identified.

Implementation

Indicative cost
High (€500k–€5M) — Approximately COP441 billion (public and private) mobilised since 2017 across 503 projects nationally; the Bogota sub-national case was financed by the city's Environment Secretariat with UNDP BIOFIN support.
Time to results
Long (> 3 years) — Created 2017; 2030 national target of 1,000,000 hectares; 2021 conservation (260,110 ha) already exceeded the 2018-2022 National Development Plan target of 196,000 hectares.
Staffing & skills
Ministerio de Ambiente y Desarrollo Sostenible (MADS) — national policy, Corporaciones Autonomas Regionales (regional environmental authorities) — local administration, Municipal environment secretariats and National Natural Parks — agreement administration, Bogota Environment Secretariat + UNDP BIOFIN (sub-national Bogota case)

Conditions for success

  • Strong statutory and constitutional basis (Decreto-Ley 870/2017, upheld by the Constitutional Court)
  • Multiple official modalities covering water, biodiversity, carbon and cultural services allow flexible local targeting
  • Sub-national co-financing partnerships (e.g. Bogota + UNDP BIOFIN) demonstrate replicability

Common failure modes

  • Indigenous participation lags severely (0.18% of active beneficiaries in 2024) due to a structural mismatch between individual-landowner payment logic and collective/ancestral territory governance, only partly addressed by the 2023 decree
  • A large gap between ~743,000 hectares ever registered and ~157,637 hectares still active in 2024 suggests substantial agreement attrition over time
  • No independent, peer-reviewed evaluation of environmental outcomes exists — reporting rests on MADS's own figures

Where it fits

Governance type
national statutory programme with regional/municipal delivery
Scale
national, with sub-national (city) implementations
Income level
upper-middle-income

Data sources

Where this practice's information was retrieved from, and when.

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