Panama

About

Panama joined the Climate and Clean Air Coalition (CCAC) in 2018, committing to work with CCAC partners to mitigate short-lived climate pollutants and deliver climate, clean air, health, and socio-economic benefits.  

Due to its small population, Panama contributes only 0.045% of global greenhouse gas emissions. Moreover, with a high forest coverage that amounts to about 65.4%, Panama is also one of the only three countries that are known as carbon negative. 

Despite its insignificant climate impact, Panama is highly vulnerable to the impacts of climate change. Climate change has increased the frequency and intensity of extreme weather events like storms, floods, and droughts, threatening the health and safety of the people and ecosystems and negatively affecting the livelihoods of the poorest and most marginalized. 

To fight the adverse impacts of climate change, Panama has set ambitious mitigation goals through its Nationally Determined Contributions (NDC) to the United Nations Framework Convention on Climate Change (UNFCCC) and other policy frameworks. The country communicated its updated NDC in 2020, committing to reduce emissions in the energy and waste sectors. Its target to cut energy emissions by 11.5% by 2030 and at least 24% would reduce an estimated 10 million tonnes of CO2-eq between 2022 and 2030. To reduce emissions from the waste sector, Panama aims to develop a circular economy plan in 2022. The revised NDC further aims to develop a national plan for climate change in the agriculture and fishing sector to enhance productivity and sustainability and commits to restoring national forests by 50,000 ha, which would absorb approximately 2.6 million tons of CO2-eq by 2050.  

In 2021, Panama presented for the first time a time series for the Greenhouse Gas National Inventory 1994-2017, including the improvement of data and emission factors, some of them from the country. This is stated in the National Inventory Report. Panama aims to implement its rice and livestock sector Nationally Appropriate Mitigation Actions (NAMA) by 2030 as well.  

To further address the climate impacts in the agriculture sector, Panama launched its National plan on climate change for agriculture (PNCCSA) in 2018, aiming to enhance the resiliency of its agricultural sector by 2030 and adjust production practices to reduce greenhouse gas emissions. The plan adopted a participatory and inclusive approach, aiming to achieve the main goals by providing priority measures in adaptation and mitigation through government programs. 

Read below for more highlights of Panama’s policies. 

Other activities

Agriculture: 

• National plan on climate change for agriculture (PNCCSA) (2018): The plan was aimed at enhancing the resiliency of Panama's agricultural sector by 2030 and adjusting production practices to reduce greenhouse gas emissions. This plan adopted a participatory and inclusive approach, aiming to achieve the main goals by providing priority measures in adaptation and mitigation through government programs. 

Waste: 

• Law No. 33 on Integrated Waste Management and Zero Waste Policy (2018): The law is based on a closed-cycle waste system and highlights widespread waste management practices like shared responsibility among waste producers, waste management hierarchy to promote prevention, minimizing, reusing, and recycling of waste, energy recovery through environmentally friendly waste treatment, and imposing fees on the polluters. These practices aim to reduce waste generation and manage the waste, to reduce the sector’s emissions while ensuring the health and safety of the public. 

Energy, Oil, and Gas: 

• National Energy Plan (PEN) 2015-2050 (2016): This document outlines the long-term plan for the development of Panama’s energy sector and renewables. According to the targets set by this plan, 15% of Panama’s generation capacity will come from renewables by 2030 and it will be increased to 50% by 2050. The plan highlights the large-scale introduction of natural gas (LNG) for power generation and other energy uses in the country; a project that is expected to change Panama’s energy matrix drastically, while cutting the sector’s emissions significantly.  

Cooling: 

• Panama Cooling Plan (PCP) (2020): Promoted by the Kigali Efficient Cooling Program, the Panama Cooling Plan presents a series of activities to sustainably develop the country’s refrigeration and air conditioning sector (RAC), incorporating energy efficiency while minimizing the impact on the environment. The strategy of this plan has 3 main objectives to ensure sustainable development, protection of the ozone layer, and fight against climate change. The objectives are; 1). Establishing synergies between the cooling program and other initiatives related to the environment and climate change, 2). Relating energy efficiency and the transition to low global warming potential refrigerants, and 3). Establishing a roadmap to accelerate the transformation of the RAC sector, integrating energy efficiency, the use of environmentally friendly refrigerants, climate protection, and public health.