Law 2056 to regulate the organisation and functioning of the general system of royalties

Country / jurisdiction: Colombia · Year: 2020 · Status: In force · Level: National · Type: Voluntary

In 2020, Colombia adopted Law 2056 to regulate royalties from the exploitation of non-renewable resources, including the mining sector.

Article 15 of the law declares that mapping activities shall be oriented toward the development of research with the objective of obtaining, complementing or deepening knowledge of the non-renewable resource potential of the soil and subsoil.

Article 22 of the law establishes that the resources collected from royalties must be distributed according to the following divisions:

20% to the departments and municipalities where the non-renewable natural resources are exploited, as well as the municipalities with sea and river ports through which the resources or products are transported.

15% for the poorest municipalities in the country. At least 2 percentage points of these resources will be allocated to projects related to or with an impact on the environment and sustainable development.

34% for regional investment projects of departments, municipalities, and districts.

1% for the conservation of strategic environmental areas and to fund the national fight against deforestation.

10% for investment in science, technology, and innovation, of which a minimum of 2 percentage points will be allocated to research or investment in science, technology, and innovation projects in matters related to or with an impact on the environment and sustainable development.

0.5% for investment projects of the riverside municipalities of the Río Grande de la Magdalena.

2% for the operation, operability, and administration of the system for the control of the exploration and exploitation of the deposits, knowledge and geological mapping of the subsoil, the evaluation, and monitoring of the environmental licensing of the exploration and exploitation projects of non-renewable natural resources and to encourage exploration and production.

1% for the operation of the Monitoring, Evaluation, and Control System.

The remainder will be allocated to savings for pension and savings for investment stabilisation.

In addition, this law mandates that until 2037, 7% of the income of the General System of Royalties will be allocated to finance investment projects for the implementation of the Final Agreement for the Termination of the Conflict and the Construction of a Stable and Lasting Peace, including the financing of projects destined to the reparation of victims.

Official source: https://www.funcionpublica.gov.co/eva/gestornormativo/norma.php?i=142858