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In a step toward sustainable economic transformation, Panama has officially launched its National Carbon Market, reinforcing its role as a green finance hub in Latin America. Against the backdrop of a strong economic outlook—real GDP growth projected at 4.0% for 2025, double the regional average forecast by the IMF—the initiative reflects Panama’s commitment to climate-aligned development without compromising fiscal discipline.
At the Apamec Forum 2025, Deputy Economy Minister Eida Sáiz unveiled a landmark collaboration between the Ministry of Economy and Environment to establish the Panamanian Carbon Exchange (Bolsa Panameña de Carbono – BPC). This platform will facilitate the trading of carbon credits, helping companies incorporate environmental costs into their balance sheets and strengthening Panama’s status as a leader in green markets.
The market launch is a key component of Panama’s broader Sustainable Financing Framework, developed with technical assistance from the Inter-American Development Bank (IDB). This framework enables Panama to issue green, social, and sustainable bonds, attracting institutional and impact investors while securing favorable evaluations from rating agencies such as Sustainable Fitch.
Panama’s economic fundamentals remain strong, with Q1 2025 GDP growth at 5.2% and inflation holding near zero (0.02%), providing fiscal space to innovate without macroeconomic strain.
By aligning carbon finance with national growth objectives, Panama strategically leverages financial markets to fund climate mitigation and adaptation projects across the public and private sectors. It also positions itself to benefit from international carbon trading mechanisms under Article 6 of the Paris Agreement.
“We are not only decarbonizing our economy—we are transforming our financial infrastructure,” Sáiz stated. “This market is about monetizing responsibility.”
Panama’s blueprint could serve as a model for emerging economies seeking green growth without sacrificing competitiveness. As regional peers watch closely, all eyes will be on the first credits issued via the BPC in Q4 2025.
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