The Superintendency of Banks of Panama (SBP) formalized its adherence to the Central American Green Taxonomy Project. The initiative, which also includes the banking systems of Colombia, Ecuador, and the Dominican Republic, aims to help financial players and other stakeholders determine which investments can be identified as green investments within their jurisdictions.
The SBP signed its attachment to the green taxonomy together with the International Finance Corporation (IFC)
– a member of the World Bank Group – the Dutch Entrepreneurial Development Bank (FMO), the Norwegian Investment Fund for Developing Countries (Norfund), and the Central American Council of Superintendents of Banks, Insurance and Other Financial Institutions (CCSBSO).
In this way, the SBP will receive IFC’s support to prepare the green finance guides, which will include the definitions of economic activities and assets that can be deemed as green, in accordance with international standards.
The Superintendent of Banks of Panama, Amauri A. Castillo, pointed out that “social and environmental issues are increasingly relevant both nationally and internationally, and we, as the regulatory body of the Panamanian banking system, are committed to strengthen social and environmental risk management, pursuant to international standards and practices.”
These actions complement the work conducted to adjust the flows of the Panamanian financial sector with the objectives of the Paris Agreement on Climate Change. In October, the Green Climate Fund approved Panama’s pledge, led by the Ministry of Environment (MiAmbiente), the Ministry of Economy and Finance (MEF), and the Panamanian Green Finance Work Group.
Alfonso García Mora, IFC’s Vice-President for Europe, Latin America, and the Caribbean; Amauri A. Castillo, Superintendent of Banks of Panama; Mario Menéndez, Superintendent of the Financial System of El Salvador and CCSBSO’s President; Federico Fernández, Norfund’s Regional Director; and Frouke Hoekstra, FMO’s Manager of the Costa Rica office signed the agreement.
García Mora highlighted the role financial regulators, such as the SBP, have not only providing financial stability to countries and protecting economies, but also in building resilience and adapting to climate change. “IFC will support the SBP in the drafting of a first phase of the green taxonomy. This phase includes the definitions that allow the recognition of economic activities and assets that could be deemed green, something that will facilitate the measurement of national climate objectives and the promotion of projects that contribute to environmental sustainability in accordance with international standards,” he said.
About the IFC
The International Finance Corporation (IFC) is a member of the World Bank Group and it is the largest global development institution focused on the private sector in developing countries. It has expanded to more than one hundred (100) countries and uses its capital, its specialized knowledge, and its influence in creating markets and opportunities in developing countries. During 2022, the IFC committed a record USD 32.8 billion to private companies and financial institutions in developing countries, seeking to harness private sector’s capacity to help end extreme poverty and boost shared prosperity at a time when economies are grappling with the impacts of simultaneous global crises. For further information, please visit www.ifc.org.
About Norfund
Norfund is the Norwegian Investment Fund for Developing Countries. Its mission is to create jobs and to improve lives by investing in businesses that drive sustainable development. The Norwegian Government owns and funds Norfund and it is the Government’s most valuable tool for strengthening the private sector in developing countries and for reducing poverty. For further information, please visit www.norfund.no/
About the FMO
The Dutch Entrepreneurial Fund for Developing Countries with investments in over eighty-five (85) countries.
FMO supports employment, income generation, and quality of life in the countries where its investments are placed. Its role extends beyond financing, as it helps businesses to operate and grow transparently in an environmentally and socially responsible manner. FMO is committed to investing in local prosperity, making a positive difference in some of the world’s most challenging markets. For further information, please visit www.fmo.nl/
About the CCSBSO
International non-profit association with indefinite duration, made up of the Superintendencies responsible for supervising banking, insurance, and financial activities in the Republics of Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica, Colombia, Panama, and the Dominican Republic. For further information, please visit https://ccsbso.org/
About the SBP
Regulatory and supervisory body of the banking and trust businesses in Panama. Promoting public trust in the banking system and strengthening and fostering favorable conditions for the development of the Republic of Panama as an international financial center are among the objectives of the Superintendency of Banks of Panama. For further information, please visit www.superbancos.gob.pa/
