By Abdullahi Lukman
Panama has developed a national roadmap for carbon markets, establishing a framework to strengthen climate action, attract private sector participation and support international cooperation under the Paris Agreement.
The initiative brings together years of technical assessments, government engagement and consultations with stakeholders to establish a coordinated approach to market-based climate solutions as countries prepare for COP31 in Türkiye.
The country’s Ministry of Environment has worked on the initiative since 2017 in partnership with the Collaborative Instruments for Ambitious Climate Action (CiACA), implemented through the UN Climate Change Regional Collaboration Centre for Latin America, with support from the German Government.
The process has progressed from initial assessments of carbon pricing options and programmes encouraging businesses to measure and offset emissions to the development of a national roadmap aligned with Article 6 of the Paris Agreement.
A major step in the process is the preparation of a draft Executive Decree aimed at establishing a National Carbon Market System.
To strengthen the proposed framework, the government conducted consultations involving approximately 300 stakeholders from more than 50 organisations, including government agencies, businesses, academic institutions, Indigenous Peoples and civil society groups.
The consultations featured 12 workshops across seven provinces, providing participants with opportunities to contribute to the development of the national carbon market framework and improve the country’s preparedness for participation in international carbon trading.
Panama’s private sector has also played a significant role through the Reduce Tu Huella – Corporativo programme, which has attracted more than 200 organisations committed to measuring and reducing their greenhouse gas emissions. Of these, 20 have pledged to achieve carbon neutrality by 2050.
Javier Martínez, Head of the Mitigation Department at the Climate Change Directorate of the Ministry of Environment (MiAMBIENTE), said initiatives such as CiACA address countries’ specific needs by supporting the development of appropriate climate policies and market mechanisms.
Panama’s progress highlights the importance of long-term planning, institutional capacity, technical expertise and stakeholder participation in establishing effective carbon markets.
The country’s experience is also expected to provide a useful reference for other nations across Central America and Latin America seeking to develop similar mechanisms for reducing emissions and advancing their climate commitments under the Paris Agreement.
