The Ministry of Environment (MiAMBIENTE), which currently serves as the National Designated Authority (NDA) to the Green Climate Fund (GCF), is the maximum governing body of Panama in matters of protection, conservation, preservation and restoration of the environment and the sustainable use of natural resources. Under the leadership of MiAMBIENTE, several policies have been implemented in the last years to face current and future challenges regarding climate change. The updated Nationally Determined Contribution (NDC) addresses climate action from an integrated approach, which seeks to overcome the adaptation-mitigation dichotomy, proposing commitments that integrate both dimensions. Panama enhanced its mitigation ambition from the first NDC. It provided specific greenhouse gas (GHG) emissions targets for the energy and forestry sectors, committing to a 24% reduction in total emissions from the country's energy sector by 2050 (and 11.5% by 2030) compared to a business-as-usual scenario. Panama also committed to the nationwide restoration of 50,000 hectares of forest by 2050. Furthermore, the National Adaptation Plan (NAP) of Panama aims to strengthen the governance and institutional coordination needed to accelerate adaptation action. These strategies and policies need the support of national institutions to channel climate financing from national and international sources. 

The proposed project aims to strengthen the capacities of two nominated Direct Access Entities (DAEs) to qualify for GCF accreditation: Fundación Wetlands International (FWI) and Fundación Natura (FN).