The Ministry of Environment and Sustainable Development (MinAmbiente) has published for public comments the Draft Resolution intended to regulate Law 2173 of 2021. This law created the “Life Areas” and established the obligation for medium and large companies to design and implement nationwide tree-planting programs.
The Draft Resolution sets out the criteria and tools required for municipal and district authorities, in coordination with environmental authorities, to identify, create, and delimit the Life Areas. In this new version of the regulation, the participation of Indigenous Authorities with environmental competencies is also included.
It is important to highlight that this regulation had already been submitted for public comments in July 2024. However, the current draft introduces substantial modifications, such as eliminating possible benefits or deductions in property tax for companies complying with their planting obligations, as well as eliminating the exclusion of employees on unpaid leave—when requested by the worker—from the calculation of the number of trees to be planted based on the company’s total number of employees.
The draft establishes that the classification of obligated medium and large companies will be made in accordance with Decree 1074 of 2015 (as amended by Decree 957 of 2019), Law 590 of 2000, and DANE Resolution 2225 of 2019. Thus, in the services sector, a medium-sized company will be one with annual revenues greater than 131,951 UVT and less than or equal to 483,034 UVT, and a large company when revenues exceed that range. Likewise, a medium-sized company will be one with a workforce between 51 and 200 employees and total assets ranging from 5,001 to 15,000 current legal monthly minimum wages, with total assets being the determining factor.
Regarding implementation, the draft provides that within three months of its issuance, municipal or district authorities must define the Life Areas within their jurisdiction. To this end, they must issue an administrative act containing the corresponding cartographic information. Unlike the 2024 draft, however, this act will no longer need to include as justification the technical guidelines developed with the environmental authority that gave rise to the declaration.
Once the Life Areas are delimited, medium and large companies must comply with the tree-planting program set forth in Article 7 of Law 2173 of 2021. For this purpose, companies must consult the areas made available by the environmental authority, notify the selection of the respective area, and submit planting programs for approval by the environmental authority. These programs must include, at minimum, the following elements:
- Identification of the Life Area.
- Description of the intervention area.
- Objectives and scope of the planting program.
- Strategy for monitoring, maintenance, and follow-up.
Companies will be required to submit their planting programs within two months after the Life Areas have been delimited by municipalities or districts. To determine the total number of trees to be planted, the company’s legal representative must submit a certification to the municipal or district authority stating the total number of employees. The environmental authority will then have 45 business days to evaluate and approve the program through an administrative act. Only upon such approval may the company begin implementation.
Nevertheless, the deadlines established in the Draft Resolution for the identification and declaration of Life Areas, as well as for the submission and approval of planting programs, do not seem to take into account the actual management capacity of municipal, district, and regional/local environmental authorities. Furthermore, the draft does not specify what would happen if municipalities fail to identify or declare Life Areas, nor does it clarify whether tree-planting programs may be outsourced or must be carried out directly by the company’s personnel.
Once the obligations under Law 2173 of 2021 are fulfilled, municipal or district authorities must issue “Corporate Tree Planting Compliance” certificates (“Siembra Vida Empresarial”) to the legal entities that complied, as formal proof of compliance with the law.
This Draft Resolution is of vital importance for medium and large companies, which will be required to implement tree-planting obligations within the Life Areas and bear the full costs associated, calculated on the basis of the number of employees as of December 31 of the immediately preceding year. Since this obligation is annual, it will represent a significant and recurring cost for companies.
If you have questions regarding the Draft Resolution, its potential impact on your organization, or if you require assistance in preparing comments, please do not hesitate to contact the Environment and Sustainable Business team at ambienteynegociossostenibles@bu.com.co