Nowadays, the international community main challenge is climate change. Meeting the goals set out in the Paris Agreement requires an unprecedented
mobilization and alignment of financial resources towards projects and economic activities that are low in emissions and more resilient to the impacts of climate change.
Within this framework, the Ministry of Environment, the Sustainable Finance Working Group, the Superintendency of Banks, the Superintendency of Insurance and Reinsurance, and the Superintendency of the Securities Market, with the support of the United Nations Environment Programme (UNEP) are moving forward in the development of the Panama Sustainable Finance Taxonomy. The Taxonomy of Sustainable Finance will integrate a classification of economic activities and assets that contribute to the achievement of the country's environmental objectives and commitments and will support investors, financial institutions, public entities, and other actors in the identification of sustainable investments.
From July 24 to 27, the validation and technical discussion tables for the integration of Panama's Sustainable Finance Taxonomy were held. The meeting brought together experts from the following sectors: energy, transportation, water, waste, manufacturing, construction, forestry, information and communication technology, agriculture, livestock, insurance, as well as regulators, guilds and financial institutions that supported the characterization of economic activities under sustainability criteria.
The Sustainable Finance Taxonomy aims to align financial flows with Panama's environmental and climate change goals, develop green capital markets, prevent misleading or unfounded claims ("greenwashing") and encourage the effective mobilization of private resources for sustainable investments.
For its development, the Taxonomy Oversight Committee was created, formed by the Ministry of Environment (MiAmbiente), the Ministry of Economy and Finance (MEF), the Superintendency of Banks, the Securities Markets Superintendency and the Superintendency of Insurance and Reinsurance, whose function is to coordinate the design, technical development, approval, and implementation of Panama's Sustainable Finance Taxonomy in Panama's financial institutions.
About Euroclima
Euroclima is a program financed by the European Union to promote environmentally sustainable and climate resilient development in Latin America and the Caribbean, particularly for the benefit of the most vulnerable populations. The Program is
implemented under the synergistic work of seven agencies: Spanish Agency for International Development Cooperation (AECID), French Development Agency (AFD), Economic Commission for Latin America and the Caribbean (ECLAC), Expertise France (EF), International and Ibero-American Foundation for Public Administration and Policies (FIIAPP), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and UN Environment.