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Carbon neutral, or negative, is when a balance or deficit is achieved between the emission and absorption of carbon dioxide from the atmosphere through carbon sinks, such as forested areas, protected areas, national parks and urban parks, mangrove areas and continental water bodies such as rivers, lakes and reservoirs. This state is reached when the amount of carbon dioxide emissions is equal to or less than the amount of carbon dioxide offset or captured. It involves a combination of reducing emissions and offsetting the remaining emissions through various means, such as planting trees, proper waste management, reducing slash and burning, conserving ecosystems, or using carbon credits.
It is important to note that Panama absorbs a greater amount of greenhouse gases (GHG) than are emitted because of human activities. In other words, Panamanian forest lands capture more carbon than total GHG emissions, which defines us as a carbon sink or negative country. Panama is among only three countries in the world to have this distinctive feature, along with Bhutan and Suriname.
The second national report on greenhouse gas emissions, prepared by the Directorate of Environmental Information of the Ministry of Environment in 2019, indicates that what makes Panama enjoy such a distinction is that 65.4% of its territory is made up of forests and other forested lands, 32.5% belongs to other lands and 2.1% to continental water bodies.
However, the rate of deforestation, land use change, destruction of mangroves and other alterations to ecosystems and the progressive increase in economic activity that is reflected in the increased activity of land use change for the construction of housing, industrial parks, shopping centers, ports and highways, among other economic and subsistence activities have been steadily decreasing our GHG absorption capacity and therefore our "neutrality". This is demonstrated by the report which shows the progressive decrease in the balance between emissions and removals, where the decrease went from 32.5% since 1994, to 17.1% since 2013.
A stricter goal than carbon neutrality, net zero, refers to the complete elimination of all greenhouse gas emissions from all sources. According to the report, in Panama the Energy sector turned out to be the one with the greatest impact, contributing 62.9% of emissions due to the increase in the consumption of liquid fuel in land transport, followed by the agriculture sector with 19.4% that remains stable and without major variations. The waste sector, with 10.7% whose increase is attributed to the population increase; and finally, 7.0% from the Industrial Processes and Product Use sector, attributed to the production of cement for infrastructures.
The goal is to achieve zero carbon emissions by reducing emissions to an absolute minimum and balancing the remaining emissions with an equivalent amount of offset measures, such as large-scale reforestation and conservation of natural areas, transition to a renewable energy matrix, electrification of mass transportation, elimination of fossil fuel-based power plants, battery banks to reduce the use of emergency plants and energy efficiency, extended producer responsibility, recycling and composting of organic waste, focusing not only on carbon dioxide, but on all greenhouse gases, including methane (CH4), nitrous oxide (N2O) and hydrofluorocarbons from fixed and mobile sources.
Net zero covers a wider range of greenhouse gases and generally represents a broader commitment to reducing environmental impact across all operational scopes. While carbon neutrality focuses on balancing carbon emissions with offsets, net zero emphasizes reducing emissions as close to zero as possible in all greenhouse gases.
There is no one-size-fits-all approach to achieving these goals. Strategies vary significantly depending on individual and organizational circumstances, technological availability, and specific environmental impacts.
Some examples of activities where GHG emissions can be reduced are open-air garbage dumps, emergency power plants, industrial plants, the destruction of ecosystems and changes in land use, and mobile sources such as ships, planes, buses, trucks, yellow machinery, and cars based on diesel and other fossil fuels.
Achieving net zero is generally more complex and demands a higher level of commitment and innovation in technology and practices compared to achieving carbon neutrality. Both objectives are fundamental in the fight against climate change. Achieving carbon neutrality or net-zero status is crucial to reducing global warming and mitigating the impacts of climate change on ecosystems and human societies.
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