He Board of Executive Directors of the World Bank approved a loan for development policy in the amount of 150 million dollars intended for Panama, which will help promote sustainable, low-carbon growth, reported the Ministry of Economy and Finance (MEF).
At the same time, it seeks to create greater resilience to climate change and better climate governance, both key aspects for greater inclusion and promoting sustainable growth for the benefit of Panamanians, especially those living in vulnerable conditions.
This is the first loan in a series of two development policy operations aimed at supporting green growth, resilience and an inclusive development model in the country.
The publication states that this operation will support measures to categorize public spending using climate change labels to improve its effectiveness and strengthen institutional capacity to incorporate climate change mitigation and adaptation criteria into management, budgeting and spending.
In addition, this project supports the decarbonization of land transport, progress in the implementation of energy efficiency policies, forest conservation and ocean protection.
The initiative seeks to increase the country’s resilience to climate change and protect its natural capital by supporting better forest management and watershed protection policies. It will also encourage the adoption of more demanding energy efficiency parameters.
Finally, the operation will support the implementation of gender-responsive policies in the areas of rural electrification, renewable energy and digital connectivity, turning Panama into a model in the countries of Central America and the region.
“Panama has enormous natural capital that, together with its social and cultural diversity and geographic location, offers great opportunities to promote integrated, inclusive and environmentally sustainable economic development,” he said. Michel Kerf, Director of the World Bank for Central America and the Dominican Republic.
Kerf indicated that this new operation will help the country move toward its goal of building a more inclusive and resilient economy for the benefit of all Panamanians.
for his part, Héctor Alexander, Minister of Economy and Financesaid that this financial operation will double the efforts that Panama is investing in establishing regulatory frameworks that promote sustainable economic growth, with low emissions and resilience to climate change.
He added that it also places Panama among countries promoting the transition to clean energy, socially inclusive low-carbon growth and technological innovation to better respond to climate emergencies.
Likewise, Panama supports efforts aimed at maintaining natural capital in favor of resilient growth by strengthening climate governance and improving institutional capacity to move forward with its climate change mitigation and adaptation agenda.
The development policy loan is designed around two pillars: supporting reforms to achieve the energy transition and socially inclusive, low-carbon growth.
Establish regulatory frameworks to maintain natural capital in favor of resilient growth.
The policy reforms included in the project are expected to bring results in 2025Among the expected results are maintaining Panama’s position as a carbon-neutral country, expanding access to energy and Internet services in remote regions, and strengthening control of deforestation in mangroves.
Source: Panama America
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
