Panama’s Rainforests: Conservation Payments Drive Economic and Environmental Gains
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📰 The quick summary: Financial incentives for forest protection emerge as a viable solution to combat deforestation in Panama, helping preserve critical ecosystems while providing economic benefits to local landowners.
📈 One key stat: Panama’s Darién region lost 117,000 hectares of forest cover between 2001-2023, representing 23% of all deforestation in Panama and highlighting the urgent need for conservation measures.
💬 One key quote: “By compensating landholders for the services their forests provide, we recognize their true value and offer a pragmatic response to deforestation, biodiversity loss, and climate change.”
1️⃣ The big picture: Panama faces significant challenges in protecting its remaining rainforests, particularly in the biodiverse Darién region. Local landowners often feel economic pressure to convert forests into farmland and cattle ranches, as this provides more immediate financial benefits. While Panama has laws designed to protect forests, weak enforcement and systemic barriers undermine conservation efforts. A growing movement now advocates for directly compensating landowners who preserve their forests, recognizing that ecosystem services like carbon storage and biodiversity protection benefit the global community but currently offer little reward to local stewards.
2️⃣ Why is this good news: Conservation payment programs offer a practical solution to bridge the gap between global environmental benefits and local economic needs. This approach transforms standing forests from perceived economic burdens into valuable assets that generate income through ecosystem services. Several NGOs are already implementing forest protection payment systems in Panama, demonstrating viable models for conservation. These initiatives help preserve critical wildlife habitats, maintain carbon sinks, and protect water resources while providing sustainable income for local communities.
3️⃣ What’s next: Panama needs to develop and implement national mechanisms to compensate Indigenous authorities, farmers, and other stakeholders who protect forests. Organizations like Amigos del Bosque OBC are working to scale payment systems through carbon markets and biodiversity credits. The country aims to strengthen its position as a biological corridor between the Americas while maintaining carbon neutrality through forest conservation programs.
Read the full story here: Mongabay – Paying to prevent deforestation is positive, not ‘nothing’ (commentary)
