OPEC fund loans $120 million to Panama to tackle climate change

To support Panama’s climate action, adaptation, resilience, and mitigation policies, the OPEC Fund is providing a $120 million loan. “Panama Support Programme for the National Climate Change Policy” aims to mitigate, contain, and reverse the effects of climate change, supporting Panama’s long-term climate change commitments.

With an additional US$320 million sovereign loan, CAF – Development Bank of Latin America is supporting the project with the OPEC Fund. Panama is a carbon neutral country that contributes almost no emissions to global warming, but is highly vulnerable to its effects.

There have been significant losses caused by natural disasters and extreme weather events like floods, droughts, tropical cyclones, tsunamis, and the El Nio-La Nia climate pattern. Through inclusive, sustainable, low carbon and climate resilient development, Panama aims to accelerate this transition.

The “Panama Support Programme for the National Climate Change Policy” supports three policy areas: climate action, adaptation and resilience, and mitigation. A comprehensive set of policy actions and regulations is included in this document.

As part of these initiatives, a low-carbon development strategy and energy transition agenda will be implemented, clean and renewable energy generation will be promoted, climate resilience will be increased, water management will be improved, and electric transportation will be promoted.