The Panama Canal pledges $8.5 billion to combat water crisis and boost climate resilience

The Panama Canal Authority has announced a plan to invest over $8.5 billion in sustainability projects over the next five years in response to the impacts of climate change. This investment exceeds the cost of expanding the canal and is crucial as the canal is facing a severe drought that has limited its capacity. The canal has experienced a daily water deficit and has been forced to reduce the number of daily ship transits.

The canal authority has announced a plan to gradually reduce the number of daily vessel passages due to the drought, but conservation measures and improved rainfall allowed the authority to maintain a higher number of daily transits. The investment will focus on upgrading infrastructure and equipment, sustainability initiatives, water management, and digital transformation to reduce greenhouse gas emissions and achieve net zero carbon emissions by 2050.

The announcement follows the appointment of the canal’s first chief sustainability officer and the collaboration with the World Bank and the International Finance Corporation to develop a comprehensive sustainability strategy. As La Niña weather patterns historically result in above-average rainfall in Panama, forecasters predict much-needed rain in the coming months.

Source .