Coal, a Complex Intersection for the Economy

Energy & Natural Resources attorney José Vicente Zapata was highlighted in Revista Banca & Economía commenting on the challenges facing Colombia's coal industry. The article identified other countries' energy transition policies that reduce consumption of the mineral, falling international prices and high logistics costs as factors that affect this productive sector. Mr. Zapata talked about the implications of these aspects on Colombia's economy, in particular royalties, which are used to finance investment projects by territorial entities.

"Local governments like that of Cesar and La Guajira that depend on these resources for social investment are affected by royalties," he said. "In La Guajira, for example, more than 46 percent of the GDP comes from mining. This means it is necessary to assume a position much more objective and responsible with respect to mining activity and its contributions to sustainability."

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