Panama Canal pledges $8.5 billion to tackle climate change and support sustainability

Chamber of Shipping > Blog > News > Panama Canal pledges $8.5 billion to tackle climate change and support sustainability

The Panama Canal Authority has unveiled plans to invest over $8.5 billion in sustainability projects within the next five years to address climate change and mitigate the effects of an ongoing severe drought. This investment, which exceeds the $5.4 billion spent on the Canal Expansion Program, will be allocated across various initiatives, including infrastructure enhancements, the addition of a photovoltaic plant, the acquisition of electric and hybrid vehicles, and a significant upgrade to the water management system costing around $2 billion. Additionally, funds will be directed towards digital transformation and efforts to decarbonize the canal, with the overarching goal of achieving net zero carbon emissions by 2050. This initiative comes in response to a substantial daily water deficit experienced at the Canal’s Gatun reservoir in 2023, prompting the authority to limit ship transits and impose draft restrictions due to reduced rainfall and the impact of El Niño.

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