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4.41. Conventional sources have historically accounted for the bulk of power generation in Panama. However, diversification in the energy matrix began in 2014 and, since then, the use of renewable sources to generate power has risen (Figure 4.1). Currently, the primary sources used are wind and solar energy; biomass is used chiefly in farming. The rise in the use of clean or renewable sources may reflect the incentives that Panama offers to promote the use of technologies that help to reduce the impact of climate change and dependency on imported fuel (Table 4.6). According to the authorities, the value of the incentives granted during the review period is not available.

Table 4.6. Incentives for clean or renewable power generation, 2014 and 2020:
Legal basis: Law No. 45 of 4.8.2004; Project: Construction, operation and maintenance of power plants running on hydroelectric power or renewable or clean energy; Description: Exemption from tariffs on equipment and spare parts, 25% tax credit applicable to income tax (IR)
Legal basis: Law No. 42 of 20.4.2011; Project: Construction, operation and maintenance of power plants running on biomass; Description: Exemption from tariffs for machinery and inputs for a period of 10 years from when the plant first becomes operational, Exemption from Tax on the Transfer of Movable Property and the Provision of Services (ITBMS) for imported machinery and inputs purchased on the domestic market, for a period of 10 years from when the plant first becomes operational, Exemption from IR for a period of 10 years from when the plant first becomes operational
Legal basis: Law No. 44 of 25.4.2011; Project: Construction and operation of wind farms; Description: Exemption from tariffs on equipment and spare parts
Exemption from Tax on the Transfer of Movable Property and the Provision of Services (ITBMS) for imported equipment and parts purchased on the domestic market, 5% tax credit applicable to income tax (IR)
(...)
Legal basis: Law No. 37 of 10.6.2013; Project: Construction, operation and maintenance of solar power stations and/or farms; Description: Exemption from tariffs on equipment and spare parts, Exemption from ITBMS for imported equipment and parts purchased on the domestic market, 5% tax credit applicable to income tax (IR)

4.47. (...) Under the Industrial Promotion Certificate (CFI), companies receive a 40% refund on any investment they make, for example (...) quality and environmental protection (...)

4.135. (...) To encourage vessel registration, the Directorate-General of the Merchant Marine (DGMM) grants discounts on the registration fee, which usually last for three consecutive years. For example, shipping companies that register at least three vessels receive discounts of between 25% and 60%; new vessels can obtain discounts of up to 100% for the first year of registration; and, since 2016, vessels that comply with certain environmental standards benefit from a 50% discount. (...)

4.143. According to the new Regulations on the Granting of Operating Licences for Auxiliary Maritime Services, from 2019 operating licences will be granted by type of service (or cluster); there are currently nine types of service. [188] (...)
[188] Provisioning; shipping agency services; ship and port facility inspections; maritime and port manoeuvres; construction, repair and maintenance of ships and port facilities, waste management and fumigation; transport; mobile offshore drilling unit service; safety and hygiene; and nautical tourism

4.150. (...) In addition to tolls, a freshwater usage charge has been levied since 2020. This charge is composed of a fixed component (PAB 10,000) and a variable component, consisting of a percentage of between 1% and 10% of the toll value, determined according to the availability of water at the time of transit. The higher the water level at the time of transit, the lower the percentage charged and vice versa. (...)

1.5. Since the last Trade Policy Review in 2015, the Moldovan economy has continued to perform well, despite difficult circumstances related to bank crisis, energy security crisis, climate challenges related to droughts, COVID pandemic and war.

1.9. As other likeminded countries, Moldova attaches great importance to promoting further integration of its small lower-middle-income economy into the global one, and to the need to make economic development more sustainable and inclusive. The Government also takes seriously concerns about the negative impact of climate change and structural changes in the economy. In this context, Moldova strongly supports the United Nations 2030 Agenda for Sustainable Development and measures that promote socially and environmentally sustainable economic growth.

1.12. Moldova has recently developed a new National Development Strategy, "Moldova 2030", which is aligned with both its EU AA DCFTA and the United Nations' 2030 Agenda for Sustainable Development. This document will contribute to the strategic allocation of budgetary resources, according to the objectives set for its four basic pillars: (1) Sustainable and inclusive economy , (...)

2.47. (...), in the process of adapting the 2030 Agenda for Sustainable Development to the national context, the Republic of Moldova has included nine indicators defined for SDG9 – Industry, Innovation and Infrastructure, implicitly the indicators for measuring industry's share of employment and gross domestic product. (...)