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Program Overview
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Panama is advancing its carbon pricing agenda through the implementation of a National Carbon Market, established under Executive Decree 142 (2021). This builds on the National Reduce Your Footprint Program (PNRTH), launched in 2020 to support the country's carbon neutrality goal by 2050. Panama has also positioned itself as a regional leader on carbon pricing, co-chairing the Carbon Pricing in the Americas platform from 2023 to 2025.
Objectives & Activities
The PMI Program in Panama aims to support the country in operationalizing and expanding its carbon pricing instruments by providing technical assistance on:
- Implementing its National Carbon Market and Offsetting Mechanism: Support the roll-out of the National Offsetting Mechanism, including institutional arrangements, pilot activities, and policy guidance
- Developing a National Measurement, Reporting, and Verification (MRV) System: Provide technical and institutional support to pilot and expand the National Reduce Your Footprint Program (Programa Nacional Reduce Tu Huella - PNRTH) as the core MRV platform for the carbon market
- Assessing Carbon Pricing Impacts: Assess distributional impacts of different policy design options and emissions trajectories, including offsetting-based compliance options for emission limits
- Supporting Panama’s Energy Transition Agenda: Assist in the implementation of Panama’s Energy Transition Agenda, with a focus on energy efficiency and low-carbon transport, including the design and regulatory framework for a National Energy Efficiency Certificates Program, complementing Panama’s carbon pricing instruments, and assessing the potential to scale investment in Green Hydrogen through participation in international carbon markets
- Cross-Cutting Capacity Building and Stakeholder Engagement: Conduct stakeholder consultations, workshops, and training activities to enhance institutional capacity, public awareness, and political buy-in for carbon pricing reforms
Additional Resources
Country Market Based Approach
Offset and/or Other Emissions Reduction Crediting Programs
Studies conducted under the PMR informed a national decision-making process which resulted in Panama’s commitment to move forward with the design and piloting of the National Carbon Market of Panama (MNCP), as established by Executive Decree 142 of 2021. Demand component of the market will come from the Reduce Your Footprint National Program (PNRTH) (see above), while the supply will be supported by the National Offsetting Mechanism of Panama.
Capacity Building & Stakeholder Engagement
PMI will support cross-cutting capacity building, stakeholder engagement, communications and knowledge sharing activities to build consensus and disseminate progress on carbon pricing and mitigation instruments.