World Bank Approves a $350 Million Dollar Loan for Panama
The World Bank executive board has approved a new loan for Panama for $350 million dollars as of this past Friday March 22nd. The financing is for programs focused on reducing emissions and improving resilience to climate change. The financing is part of the development policy program (DPP) on Climate Resilience and Green Growth and will support the country in reforms aimed at decarbonizing the transportation and energy sectors, the multilateral organization indicated in a statement. Likewise, part of the resources will be allocated to programs that seek to generate the capacities required in the task of adaptation and mitigation of the effects of climate change.
The World Bank detailed that this $350 million dollar project will support the reforms established on two levels: The first level focuses on promoting a clean energy transition, low-carbon and socially inclusive growth, and technological innovations for disaster preparedness. “In accordance with this component, Panama will continue to strengthen the regulatory and regulatory frameworks that were created to reduce emissions from the energy and transportation sectors. This level supports political reforms aimed at rural electrification through renewable energies and digital connectivity that will benefit women and indigenous territories.”
The second level will help Panama continue developing capabilities to manage its natural resources sustainably and plan for climate change. The agency explained that this includes support for instruments that contribute to improving climate planning and governance, such as the National System for Adaptation to Climate Change and Climate Change Scenarios, which will function as a basis for planning public and private investments for the future. “Panama’s ability to support rapid economic growth and further reduce poverty is interconnected with its ability to adapt to climate change and mitigate its effects,” said Michel Kerf, World Bank regional director for Central America and the Dominican Republic.
Michel Kerf said that the programs to reduce carbon emissions and accelerate the energy transition demonstrate Panama’s commitment to achieving a sustainable and resilient future in the face of climate change. The agency explained that this credit operation is based on the previous development policy loan (PPD), on Climate Resilience and Green Growth approved by the World Bank in April 2023. “During the 2019-24 period, the Government of Panama carried out political reform actions and measures related to the energy transition and climate resilience, as part of its process to decarbonize the transportation sector and, at the same time, mitigate the negative effects of climate change on the national economy,” said the Minister of Economy and Finance of Panama, Héctor Alexander.
