The World Bank and Panama are stepping up efforts to reduce emissions

He Ministry of Economy and Finance (MPEG) reported that Panama will work in collaboration with the World Bank (WB) to continue reducing emissions and adapting to climate change through a new project it approved on Friday, March 22. Executive Board of the World Bank.

Second Development Policy Loan (DPL) at Climate resistance and green growth It will support reforms aimed at decarbonizing the transport and energy sectors and will support Panama in creating the necessary capacity to adapt and mitigate the effects of climate change, which will benefit the most vulnerable population.

It was announced that this project 350 million dollars supports reforms based on two pillars.

According to the MEF, the first pillar is aimed at promoting the transition to clean energy, low-carbon and socially inclusive growth, and technological innovation suitable for disaster preparedness.

In accordance with this component, Panama will continue to strengthen the regulatory and regulatory frameworks created to reduce emissions from the energy and transportation sectors.

The decarbonisation of these sectors is essential to meeting the commitments the country has made in the face of climate change.

Likewise, this pillar supports policy reforms aimed at rural electrification through renewable energy sources and digital connectivity that will benefit women and indigenous territories.

While the second pillar will help Panama continue to develop its capabilities sustainably manage their natural resources and plan for climate change.

This includes supporting instruments that contribute to improving climate planning and management, such as National climate change adaptation system and climate change scenarioswhich will serve as a basis for planning public and private investments for the future.

The operation builds on the previous Development Policy Loan (PPD), on Climate Change 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 political governance at the economic and social levels .