Wednesday 01 february 2023 - 6:08:36 am

OPEC Fund supports Panama’s climate change policy with $120mn loan


VIENNA, 25th January, 2023 (WAM) -- The OPEC Fund for International Development (the OPEC Fund) is providing a US$120 million loan to Panama to support the country’s climate action, adaptation, resilience and mitigation policies.

The “Panama Support Programme for the National Climate Change Policy” aims to mitigate, contain and reverse the effects of climate change, helping Panama to achieve its long-term climate change commitments aligned with the Paris Agreement.

The OPEC Fund is partnering in the project with CAF - Development Bank of Latin America, which is supporting the programme with an additional US$320 million sovereign loan.

While Panama is considered a carbon negative country with almost no contributions to global emissions, it is highly vulnerable to the impacts of climate change. Natural disasters and extreme weather events including floods, droughts, tropical cyclones, tsunamis and recurring tropical climate patterns El Niño-La Niña have caused significant losses in recent years. In response, Panama aims to accelerate the transition towards inclusive, sustainable, low carbon and climate resilient development.

OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said, “We recognise Panama’s dedication and endorse its efforts to mitigate climate change risks and contribute to the global climate goals through public policies and instruments. This will support Panama’s long-term sustainable socio-economic development and improve livelihoods for its people. Our support is aligned with the OPEC Fund’s first dedicated Climate Action Plan, which increases the share of our climate financing to 40 percent of all financing by 2030.”

The “Panama Support Programme for the National Climate Change Policy” is supporting three policy areas: climate action; adaptation and resilience; and mitigation. It comprises a set of comprehensive policy actions and regulations. These include the implementation of a low-carbon development strategy and a national energy transition agenda, promotion of clean and renewable energy generation, programmes to increase climate resilience to extreme weather conditions and development of effective water management and promotion of low-carbon electric transportation systems in the country.

Amjad Saleh/ Hazem Hussein