Naso Tjër Di

Panamá

Colón

Veraguas

Chiriquí

Emberá

Darién

Bocas del Toro

Guna Yala

Herrera

Panamá Oeste

Ngäbe-Buglé

Los Santos

Coclé

Panama

1 million hectares of forests will be established by 2050

30% of electricity generation will be renewable by 2050, with an interim target of 15% by 2030

30% of electricity generation will be renewable by 2050

25-50% of public vehicles will be electric by 2030

electric vehicles will represent 25-40% of private vehicle sales by 2030

10-20% of private vehicles will be electric by 2030

To supply 70% of the national energy mix through renewables by 2050

25-50% of public fleet of cars to be electric

25-40% of private vehicle sales to be electric by 2030

10-20% of private vehicles to be electric by 2030

Increase in reforested areas of 1 million hectares by 2030 against a 2017 baseline

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Latin America and the Caribbean (LAC) is home to some of the world’s most important carbon-sink ecosystems and biodiversity hotspots. However, the region is also highly vulnerable to climate change. These climate pressures threaten ecosystems, rural livelihoods, and resource-dependent communities. While nature-based solutions are increasingly recognised as critical tools for climate mitigation and adaptation, investment in these approaches remains limited across the region. Rural small and medium enterprises (SMEs), which play a vital role in delivering nature-based solutions, face significant financing barriers.  Many SMEs and smallholder farmers lack the technical capacity and business skills to implement climate-resilient, nature-positive practices at scale.

This programme seeks to close this gap by providing tailored growth capital and technical assistance to rural SMEs working in nature-based solution value chains across Latin America and the Caribbean. Investments will focus on sectors such as sustainable and regenerative agriculture, agroforestry and sustainable forestry management, aquaculture, circular economy solutions, and ecotourism.

Alongside financing, the programme will deliver specialised technical assistance to strengthen business performance and support the adoption of climate and nature standards, certifications, and monitoring systems. Over a ten-year period, the initiative is expected to generate significant climate benefits, including an estimated reduction of 55.5 million tonnes of carbon dioxide equivalent, while supporting climate resilience for approximately 1.3 million people and promoting sustainable management across more than one million hectares of land.

This project was developed under the Project-specific Assessment Approach (PSAA).

Enabling Activity Objective 

The objective of this project is to assist the Government of Panama (GoP) in the preparation and submission of its Second Biennial Transparency Report (BTR2) and its combined Third Biennial Transparency and Fifth National Communication on Climate Change Report (BTR3+NC5) to comply with its obligations under the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement (PA). The reports will be developed in line with the Modalities, Procedures, and Guidelines (MPGs) for the Enhanced Transparency Framework (ETF) for action and support  referred to in Article 13 of the Paris Agreement (Decision 18/CMA .1) and the guidance on operationalizing the Modalities, Procedures, and Guidelines (MPGs) as per Decision 5/CMA.3. This project will support the GoP in assessing its national climate context and tracking the progress of its international climate commitments. Data and information from the BTR2 and BTR3+NC5 will aid the GoP in mainstreaming climate change considerations into national development planning and policy. Lastly, this project will enhance the institutional and technical capacity of public institutions, the private sector, and key stakeholders in Panama to measure national, sectorial, and organizational emission levels in line with international standards. Thus, providing the essential technical inputs to develop policy solutions to tackle emissions sources and build resilience. 
Enabling Activity Summary 

This project is prepared in line with the GEF-8 Climate Change Focal Area Strategy and Associated Programming/ Pillar II: Foster enabling conditions to mainstream mitigation concerns into sustainable development strategies/ Objective 2.2 Support relevant Convention obligations and enabling activities.

Article 13 of the Paris Agreement established an Enhanced Transparency Framework (ETF) for action and support designed to build trust and confidence that all countries are contributing their share to the global effort.

The new transparency system under the Paris Agreement builds on and enhances the existing systems under the Convention. National Communications (NCs), Biennial Update Reports (BURs), and International Consultation and Analysis (ICA) have formed part of the experience drawn upon and contributed to improvements of capacity constraints and continuous building of capacity and expertise in advance of the Enhanced Transparency Framework (ETF). 

The CMA decided that Parties shall submit their first BTR and national inventory report, if submitted as a stand-alone report, per the adopted modalities, procedures, and guidelines, at the latest by 31 December 2024 and that LDCs and SIDS may submit this information at their discretion. The Modalities, Procedures, and Guidelines (MPGs) were adopted in the Katowice Climate Package through decision 18/CMA.1 sets the rules for the implementation of the ETF under the Paris Agreement. At the COP26, the "Paris Agreement rulebook"/MPGs has been finalized. This set of rules lays out how countries are held accountable for delivering on their climate action promises and self-set targets under their Nationally Determined Contributions (NDCs) and enables the operationalization of the enhanced transparency framework. (Decision 5/CMA.3: Guidance for operationalizing the modalities, procedures, and guidelines for the enhanced transparency framework referred to in Article 13 of the Paris Agreement.).

The preparation of the BTR2 + BTR3/NC5 of Panama with the financial assistance of the GEF will serve to further strengthen the institutional and technical capacities of Panama for implementing the Convention, Paris Agreement and reporting thereon to the UNFCCC secretariat and the CMA. The project will provide the platform for furthering the development and implementation of the MRV systems for tracking emissions, mitigation, adaptation, and support within the Enhanced Transparency Framework (ETF) of the PA.

The project objectives will be achieved through the outcomes and outputs as defined in the Project Framework table below. The BTR2 and BTR3/NC5 will be compiled according to the guidelines, requirements, and formats set by the Modalities, Procedures, and Guidelines (MPGs). Their final formats will follow the outline for the Biennial Transparency Report and for National Communication and apply common reporting tables and tabular formats presented in Decision 5/CMA.3. Supplemental chapters on research and systemic observation and on education, training, and public awareness as part of the BTR3/NC5 will be compiled per applicable guidelines of Decision 17/CP.8. 

The Republic of Panama has sent its First Adaptation Communication as part of the First Updated Nationally Determined Contributions (Updated NDC1) submitted in 2020 Strategically, since adaptation is a national priority, the adaptation communications will be part of each national submission and/or updates of the NDCs. In this sense, the next Adaptation Communication of Panama is expected to be submitted together with the next submission of its NDC. 

The BTR2 is expected to be finalized and submitted to the UNFCCC by 31 December 2026, and the combined BTR3/NC5 is expected to be finalized and submitted to the UNFCCC by 31 December 2028.

<p>The Program will increase the resilience of the communities and their livelihoods in the coastal zone of the Central Pacific of Panama, through the generation of climate information applied to the  development of tools and plans that guide key adaptation actions and the strengthening of actors' capacities, whileimproving the management of high-value ecosystems as sinks of blue carbon and other important ecosystem services they provide. To achieve this, the Program has identified three specific objectives:▪ Specific objective 1: Generate greater resilience in essential livelihoods through climate-smart management and productive diversification actions; as well as the development of actions for the conservation and restoration of high value coastal marine ecosystems.▪ Specific objective 2: Improve local and national capacity to respond to climate threats by developing effective tools for science-based decision-making, as well as risk reduction systems with a nature-based approach.▪ Specific objective 3. Build and improve climate governance, the management and appropriation of knowledge on the matter, at the local, regional, and national levels, for the implementation of tangible adaptation and resilience measures to climate change.</p>

<p>The objective of the regional project is to reduce vulnerability and strengthen the adaptive capacities of nine coastal municipalities in Cuba and Panama to climate change impacts. Proposed solutions will promote EbA, SLM practices and nature-based livelihoods and will support the adoption of innovative damage and loss methodologies for enhanced knowledge and understanding of comprehensive risk management approaches at the local and national level on climate change impacts.</p>

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