PANAMA JOINS THE GLOBAL CARBON PRICING CHALLENGE (GCPC)

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  • Panama signs up as latest Friend to the Global Carbon Pricing Challenge (GCPC), following the addition of Guinea earlier this month.

  • Panama’s commitments to the GCPC reinforce country’s commitment to climate action in line with the Paris Agreement.

Panama has become the latest Friend to the Global Carbon Pricing Challenge (GCPC), an initiative aiming to cover 60% of global carbon emissions with carbon pricing by 2030. This latest announcement follows news that Guinea has joined as a Friend with both countries actively pursuing options to implement carbon pricing mechanisms. 

Panama's commitment to the GCPC comes after an exploratory period assessing the effectiveness of carbon pricing mechanisms and identifying the legislative requirements to support their implementation. Building on previous collaborations – including with the World Bank – Panama has consistently demonstrated its dedication to decarbonization and aligning with the goals of the Paris Agreement. The country is focused on achieving ambitious climate targets set through its NDC, prioritizing issues such as renewable energy, improving energy efficiency, and promoting sustainable land use and forest management. By engaging with the GCPC, Panama aims to enhance its capacity, draw from global best practices, and accelerate its transition to a low-carbon economy through the effective implementation of carbon pricing initiatives.

Capacity building is fundamental to the GCPC, enabling countries without carbon pricing mechanisms to benefit from others' experiences. As a Friend to the GCPC, Panama will benefit from lessons learned and collaborative relationships, allowing it to implement effective carbon pricing programs based on proven strategies and shared experiences.

Juan Carlos Monterrey Gomez, Special Representative for Climate Change in the Ministry of the Environment for Panama said: “Carbon pricing is a real climate solution. Panama is committed to ambitious and effective climate action and sees the Global Carbon Pricing Challenge as pivotal in reaching this goal. By joining the GCPC, Panama aims to accelerate the adoption of carbon pricing mechanisms that can drive down emissions more effectively and foster sustainable economic growth.”

 

“Carbon pricing can be a key part of driving effective country-level decarbonization”, said Catherine Stewart, Chair of the GCPC Advisory Committee and Canada’s Ambassador for Climate Change. “By establishing a clear economic signal, it fosters emissions reductions while stimulating innovation in sustainable technologies and attracting necessary investments in green infrastructure. I am pleased to welcome Panama to the Global Carbon Pricing Challenge (GCPC). The GCPC is helping countries work together to meet their climate commitments, drive systemic change, and work towards a sustainable future for all.”

Panama joins the GCPC, alongside Partners including Canada, Chile, Denmark, the EU, France, Germany, Kazakhstan, New Zealand, Norway, South Korea, Sweden and the UK, and Friends Côte d’Ivoire and Guinea.

Contact 

For further information, please contact the GCPC Communications Team: info@globalcarbonpricingchallenge.org

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In conversation with Ambassador Stewart at New York Climate Week 2024