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- OPEC Fund supports Panama’s climate change policy with US$120 million loan
OPEC Fund supports Panama’s climate change policy with US$120 million loan
January 23, 2023: 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 Program 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 program 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 recognize 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 Program 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, programs 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.
The program is aligned with UN Sustainable Development Goals (SDG): SDG 13 (climate action), SDG 7 (affordable and clean energy) and SDG 11 (sustainable cities and communities).
About the OPEC Fund
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$23 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA/Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.