The Board of Directors of CAF - development bank of Latin America and the Caribbean - approved a loan for USD 200 million to accompany Panama's energy and environmental transition policy, with the purpose of supporting the country's efforts to achieve economic growth with a more efficient and decarbonized energy demand.

This operation will support an environmental agenda that promotes the adoption of clean and renewable energies, the diversification of the energy matrix, the reduction of fossil fuels and improvements in energy security that result in long-term economic and social benefits.

“CAF has consolidated itself in Panama as a bank committed to environmental sustainability. We currently operate as a green bank, where an outstanding 75% of our credit and technical assistance initiatives have been classified as green and blue projects. What we are doing today with this operation is a recognition of the policies defined and implemented by Panama and supporting them so that the country can continue on its path of fair energy transition. This is what we want to replicate in the rest of the region as the green bank of Latin America and the Caribbean,” said Sergio Díaz-Granados, executive president of CAF.

The roadmap for climate action in the energy sector in Panama, within the framework of the commitments assumed in the Sustainable Development Goals, the Paris Agreement and the Nationally Determined Contributions, contemplates 5 strategic axes: universal access to energy; rational and efficient use of energy; electric mobility; distributed generation; and innovation of the National Interconnected System.

CAF supports gender and skills initiatives linked to energy transition

Given the relevance of this policy, we have accompanied this credit operation with two initiatives linked to capacity building and gender inclusion in the Energy Transition Agenda. The first, linked to empowering indigenous women in the installation and repair of solar panels in isolated communities, in order to guarantee their active participation in decision-making in the energy sector to achieve sustainable and inclusive development and ensure more comprehensive management. and effective use of natural resources.

The second initiative is the National Oratory Contest for 2023, organized by MEDUCA, which this year is about the Energy Transition Agenda, to generate transversal skills in the country's future professionals, promoting dialogue and reflection around the importance to embrace responsible energy practices and to forge a society committed to the preservation of the environment, which reflects Panama's unequivocal commitment to building a sustainable future and a national culture aware of the strength of its biodiversity.

By 2050, Panama will become a global benchmark in terms of climate change, developing an ambitious mitigation and adaptation policy, promoting the decarbonization of the energy matrix and the use of low-carbon fuels in addition to increasing investments in alternative energies such as solar, wind and biofuels.