Climate finance is expanding worldwide, yet many countries continue to face challenges in transforming commitments into concrete results. In Colombia, the Obras por Impuestos (Works for Taxes) framework offers a valuable opportunity. This fiscal mechanism allows companies to redirect part of their tax payments into public investments. Until recently, it had been applied mainly to traditional infrastructure such as roads and schools. This initiative sought to demonstrate that the same mechanism could also finance integrated goals related to climate action, biodiversity conservation, and peacebuilding. The project focused on creating the enabling conditions required for such innovation: supportive policies, institutional coordination, and private sector engagement. The approach was piloted in Caquetá, a region in the Amazonian foothills marked by both rich biodiversity and a history of conflict and deforestation. The pilot successfully structured a “nature-for-peace” investment under the Obras por Impuestos framework, showing that domestic fiscal tools can channel resources toward ecosystem restoration and community resilience. This initiative generated tangible outcomes. It strengthened collaboration among national institutions, increased awareness within the private sector, and provided practical insights into how domestic finance can deliver environmental and social benefits. It also contributed to the conceptualization of the Nature for Peace Mechanism for Productive Restoration and Community Resilience; a proposed non-market approach (NMA) whose technical documentation is now with the Government of Colombia. While regulatory complexity, limited technical capacity, and fragmented information systems posed challenges, the pilot proved that with the right enabling environment, fiscal instruments can drive transformative and inclusive climate action. The Colombian experience is now informing national and international discussions on how to repurpose existing financial tools to accelerate progress toward climate resilience, biodiversity protection, and lasting peace. Context and Ambition In Colombia, the Obras por Impuestos framework was created to attract private investment in public infrastructure in regions affected by conflict. While it provided a valuable opportunity to connect private resources with local development needs, its application remained narrow. The mechanism was mainly used to Photo by Elizabeth Ramírez, Alliance Bioversity & CIAT 2 build roads, schools, and basic services, rather than to support environmental restoration or peacebuilding. Several enabling environment barriers limited its broader use. The regulatory framework did not clearly allow investment in projects related to climate action or ecosystem services, and institutional coordination between fiscal, environmental, and peace agencies was weak. Many private companies were unaware that the program could finance non-traditional projects and lacked technical guidance to develop them. At the same time, local communities and smallholder farmers in high-biodiversity, conflict-affected areas struggled to access finance and participate in formal investment processes. Complex approval procedures, limited technical capacity, and the absence of a unified platform for information-sharing further constrained implementation. These factors combined to prevent the innovation from being applied at scale, despite the strong potential of the mechanism to advance integrated environmental and social objectives. Creating the Enabling Environment for Scale To address the regulatory, institutional, and capacity barriers that limited the use of Colombia’s Obras por Impuestos mechanism for environmental purposes, the Alliance of Bioversity International and CIAT, together with national and local partners, implemented a set of targeted enabling innovations. The initiative facilitated policy dialogue among the Ministry of Environment and Sustainable Development (MADS), the National Planning Department (DNP), and the Municipality of Belén de los Andaquíes to align the Obras por Impuestos framework with national green business and low-emission development policies. Through capacity development, the Alliance strengthened the technical skills of municipal authorities to prepare, structure, and manage projects eligible under the mechanism. This enabled Belén de los Andaquíes to formally present the first environmental Obras por Impuestos proposal focused on cocoa agroforestry and ecosystem restoration. Public–private collaboration was fostered through engagement with companies eligible for tax redemption, demonstrating how fiscal incentives can reduce investment risks while delivering social and environmental co-benefits. Collectively, these strategies helped demonstrate how an underused fiscal instrument could be adapted to support green investment in conflict-affected regions. They also provided inputs that informed the design of the Nature for Peace Mechanism for Productive Restoration and Community Resilience. The Intervention and Actions The initiative improved the enabling environment by aligning local innovation with Colombia’s Obras por Impuestos mechanism, enabling green business projects to access non-traditional finance. Partnerships among MADS, National Planning Department, the Belén de los Andaquíes municipality, and the Asproabelen Cooperative ensured technical compliance and policy alignment. Research on deforestation and agroforestry informed the design of a hybrid model integrating payments for environmental services with sustainable cocoa production. Participatory co-design strengthened local ownership and institutional capacity, creating a replicable approach that links fiscal incentives with low-emission development and sustainable livelihoods in conflict-affected, high-deforestation regions. Results and Impact The approach was piloted in Colombia, where it demonstrated that domestic financing mechanisms, when strategically repurposed, can unlock new pathways for integrated climate action, peacebuilding, and sustainable development. A nature-for-peace investment was successfully structured under the Obras por Impuestos framework, marking a first-of- its-kind use of the mechanism for environmental and social outcomes beyond traditional infrastructure. This pilot informed the conceptual design of the Nature for Peace Mechanism for Productive Restoration and Community Resilience, a proposed non-market approach (NMA) whose technical documentation is now with the Government of Colombia. Early outcomes include increased interest from companies in investing through tax-based mechanisms, stronger collaboration between ministries and local actors, and growing demand for technical guidance to replicate the model. The pilot also produced valuable data on enabling conditions, such as policy clarity, institutional Photo by Elizabeth Ramírez, Alliance Bioversity & CIAT 3 coordination, and capacity-building needs, that are now informing the design of the NMA. By demonstrating feasibility and generating momentum, the pilot has helped shift the narrative around domestic finance, from infrastructure-only to a tool for transformative, inclusive climate action. Evidence of Impact The scaling effort led to the first environmental project approved for inclusion in Colombia’s Obras por Impuestos mechanism, marking an institutional precedent for channeling tax-based investments toward sustainable production and restoration in conflict-affected areas. The approved project in Belén de los Andaquíes (Caquetá) has a projected value of USD 1.14 million over four years and is designed to benefit 70 cocoa-farming families through the Asproabelen Cooperative. The proposal integrates cocoa agroforestry systems with Payments for Environmental Services (PES), offering annual incentives of $147 per hectare to participating farmers. While private sector investment is still pending, the project’s formal registration represents a policy milestone: it is the first time the Obras por Impuestos framework has been applied to low-emission rural development rather than traditional infrastructure. This achievement reflects a qualitative shift in institutional openness within MADS, DNP, and the Territorial Renewal Agency to support non-traditional green projects. The process also strengthened local and institutional capacities to design and submit technically compliant proposals under the program, improving coordination among government agencies, producer organizations, and potential private investors. This combination of formal approval, institutional learning, and policy recognition provides a measurable foundation for scaling the mechanism to other municipalities affected by deforestation and conflict. Reflection and Learning A key lesson from the pilot was the importance of creating enabling conditions for private sector engagement in non-traditional investment areas. While many companies are eligible to participate in tax-based mechanisms, few are aware that these can support projects beyond infrastructure—such as ecosystem restoration, sustainable agriculture, and peacebuilding. This knowledge gap limits the potential of such mechanisms to deliver broader environmental and social outcomes. The pilot also revealed that communities in high-biodiversity, conflict-affected areas often prioritize environmental restoration and sustainable livelihoods over conventional infrastructure. Aligning investment opportunities with these local priorities requires not only regulatory flexibility but also institutional coordination and technical support. Challenges included navigating complex approval processes, limited technical capacity among both public and private actors, and the absence of clear guidance on how to structure and register integrated projects. Additionally, the lack of a centralized platform for information-sharing and monitoring hindered transparency and replication. These insights are now informing the design of the Nature for Peace Mechanism, which aims to address these barriers through targeted capacity-building, policy engagement, and the development of practical tools and knowledge products. The experience underscores the need for a supportive enabling environment to scale such approaches effectively. Affordability for Users The innovation enabled this project to promote a line of investment in green businesses for the Works for Taxes mechanism developed by MADS, which is available to municipal entities and producers’ associations throughout the country. Financial Sustainability The Association of Cocoa Producers ASPROABELEN had access to sources of financing under the Works for Taxes mechanism, reducing transaction costs in the formulation and management of the project, which is one of the main barriers for this type of organization. At the same time, mechanisms were established that facilitated the formalization of land tenure through the municipal government and the environmental authority. Temporal & Environmental Sustainability The green investment line under the Works for Taxes mechanism allows for the recognition of conservation Photo by Juan Pablo Marín, Alliance Bioversity & CIAT Photo by Juan Pablo Marín, Alliance Bioversity & CIAT Acknowledgements This work was carried out under the CGIAR Scaling for Impact (S4I) program. We would like to thank all funders who supported this research through their contributions to the CGIAR Trust Fund (www.cgiar.org/funders). Disclaimer: This publication has been prepared as an output of S4I and has not been independently peer-reviewed. Responsibility for editing, proofreading, and layout, opinions expressed, and any possible errors lies with the authors and not the institutions involved. CGIAR Map disclaimer: Boundaries used in the maps do not imply the expression of any opinion whatsoever on the part of CGIAR concerning the legal status of any country, territory, city, or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. Borders are approximate and cover some areas for which there may not yet be full agreement. Copyright © 2025 Alliance of Bioversity International and CIAT.  This work is licensed under Creative Commons License CC BY-NC-ND 4.0. Suggested citation: Villarino, E., Borda, C. 2025. From research to innovative financing for scaling environmental peacebuilding. Enabling Environment Success and Failure Stories. Cali, Colombia: Alliance of Bioversity International and CIAT and CGIAR Scaling for Impact program. incentives such as PES, incentives for recovery through agroforestry systems, and technical assistance. The PES incentive allows for the strengthening of green business models. Inclusivity and Responsible Scaling (GenderUp Framework): Stage 1 & 2 - Exploring User Diversity: The main barrier that was overcome was access to sources of financing for vulnerable producers in territories affected by armed conflict, in areas of active deforestation, and where land tenure is unclear. The participation of small producers was encouraged, mechanisms for accessing financing were helped to be created, and mechanisms for granting legal land tenure were generated. Stage 3 - Anticipating Differentiated Consequences: The risks identified are an increase in armed conflict in the project areas, limitations on compliance with European Union regulations on zero deforestation, and changes in productivity due to climate variability. Stage 4 - Mitigating Risks and Embracing Opportunities: An opportunity was identified to mitigate risks by linking monitoring systems for PES incentives with the zero deforestation monitoring system to comply with European Union regulations and linking zero deforestation verification processes with the Green Business seal of MADS. Photo by Valentina Yomayuza, Alliance Bioversity & CIAT https://www.cgiar.org/cgiar-research-porfolio-2025-2030/scaling-for-impact/ http://www.cgiar.org/funders