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Case Study: Panama Canal Watershed
The Panama Canal Watershed experienced significant deforestation between 1974 and 1991, with forest cover decreasing by 43 percent. In response to water scarcity risks and the operational needs of the canal, the Panama Canal Authority (ACP) and the Panamanian government implemented a combination of strict legal prohibitions, financial incentives, and active reforestation. By 2010, approximately 18,000 hectares of forest had been restored. Key success factors included the creation of the Interagency Watershed Commission (CICH) and the Environmental Economic Incentives Program, though challenges remain regarding invasive species, land tenure, and community participation.
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Document type: Case study