Panama

Not expressed in NDC.

[machine translated] The Government of Panama is implementing, in a pilot phase, its national carbon market. Both projects under this market and those developed pursuant to the Article 6 decision book will employ a unified registry and tracking mechanism to ensure consistency between mechanisms, as well as environmental integrity and transaction transparency. The national market will prioritize, among other things, the use of Mitigation Contribution Units (MCUs), developed pursuant to the Rules, Procedures, and Modalities (RPMs) of Article 6.4, incorporating environmental and human rights safeguards, promoting effective participation, and ensuring high standards of transparency and environmental integrity. Panama recognizes the potential of cooperative approaches to mobilize timely investments, accelerate its transition to resilient, low-emission development, and contribute to global climate action. In this context, the country will consider the use of ITMOs, provided they are technically evaluated and have prior authorization from the National Government, under applicable regulations, whether existing or under development. These transfers will be subject to the guidelines of Article 6.2, in accordance with decisions adopted by the CMA. In this process, it will be essential to ensure respect for the rights of Indigenous Peoples and Afro-descendant and local communities, including the recognition of territorial rights, the application of standards of free, prior, and informed consultation, the fair and equitable distribution of benefits, the establishment of impact assessments and accessible grievance procedures, as well as transparency and participation measures in project monitoring. Furthermore, Panama will prioritize the use of Article 6.8 as a key instrument to strengthen non-market-based cooperation, with an emphasis on supporting the energy transition and national priorities in adaptation and resilience. This comprehensive approach will allow the country to progressively advance compliance with the NDC, while strengthening environmental integrity and confidence in the international climate cooperation system and the protection of human rights.