OPEC Fund Quarterly - 2023 Q1

DEVELOPMENT NEWS

Fighting climate change in Panama

efforts to mitigate climate change risks and contribute to the global climate goals through public policies and instruments. This will support the long-term sustainable socio-economic development and improve people’s livelihoods. Our support is aligned with the OPEC Fund’s first dedicated Climate Action Plan, which will increase the share of our climate financing to 40 percent of all financing by 2030.” The new financing is supporting three policy areas: climate action; adaptation and resilience; and mitigation. It includes a set of comprehensive policy actions and regulations: 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

A US$120 million OPEC Fund loan will support the country’s climate policies

T he OPEC Fund for International Development 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 Abdulhamid Alkhalifa said: “We recognize Panama’s dedication and endorse its

to extreme weather conditions and the development of effective water

management and the promotion of low- carbon electric transportation systems in the country. The program is aligned with UN SDG 13 – Climate Action, SDG 7 – Affordable and Clean Energy and SDG 11 – Sustainable Cities and Communities.

The program is aligned with these UN SDGs:

The OPEC Fund's Climate Action Plan will account for 40% of all new financing by 2030

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