World Bank and Panama strengthen work to reduce emissions

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By LatAm Reports Editorial Team

The project focuses on promoting a transition to clean energy, growth with low carbon and socially inclusive levels.

The Ministry of Economy and Finance (MEF) reported that Panama will work in collaboration with the World Bank (WB) to further reduce emissions and adapt to climate change through a new project approved on Friday, March 22, the Executive Board of the World Bank. 

The second development policy loan (PDP) on Climate Resilience and Green Growth will underpin reforms aimed at decarbonizing transport and energy sectors, and support Panama in building the capacities needed to adapt and mitigate the effects of climate change, which will benefit the most vulnerable populations.

It was reported that this $350 million project supports the two-pillar reforms.

According to the MEF, the first pillar focuses on promoting a transition to clean energy, low levels of carbon and socially inclusive growth, and technology innovations conducive to disaster preparedness.

In line with this component, Panama will continue to strengthen the regulatory and regulatory frameworks that were created to reduce emissions from the energy and transport sectors.

The decarbonization of these sectors is essential to fulfilling the country’s commitments to climate change.

This pillar also supports political reforms aimed at rural electrification through renewable energy and digital connectivity that will benefit women and indigenous territories.

While the second pillar will help Panama to further develop its capacities to manage its natural resources in a sustainable manner and to plan for climate change.

This includes support for tools that contribute to improving climate planning and governance, such as the National Climate Change Adaptation System and Climate Change Scenarios, which will serve as a basis for planning for future public and private investment.

The operation is based on the previous development policy loan (PPD), on Climate Resilience and Green Growth approved by the World Bank in April 2023, and highlights Panama’s commitment to integrate sustainability and climate action into its economic and social political management. 

This article has been translated from the original which first appeared in Panama America