SAN FRANCISCO — California Air Resources Board (CARB) Chair Liane Randolph welcomed a delegation from the Republic of Panama today to enter into a partnership on carbon pricing programs and climate investments.  

At state offices in San Francisco, Chair Randolph hosted an official visit by Panama Minister of Environment Juan Carlos Navarro. There, California and Panama participated in a bilateral meeting, followed by the signing of a Memorandum of Understanding (MOU) that establishes a two-year partnership between CARB and the Panama Ministry of Environment (MiAMBIENTE). Text of the MOU is available here (https://ww2.arb.ca.gov/resources/documents/memorandum-understanding-between-ministry-environment-republic-panama-and) in English and in Spanish.  

"California and Panama have a history of productive collaboration on advancing our shared climate goals," said CARB Chair Liane Randolph. "We are thrilled to build on our partnership with Panama with this MOU as we continue to share knowledge and best practices to support impactful, cost-effective climate policies that benefit communities in California, Panama, and around the world." 

“The Memorandum of Understanding signed today represents a momentous opportunity for Panama, allowing us to expand our current collaboration on our respective carbon programs and carbon pricing instruments and to collaborate directly with top-level global expert, making available their experience to Panama in the design and implementation of market-based mechanisms for climate change mitigation and the establishment of carbon markets, said Minister Juan Carlos Navarro. “Together with President José Raul Mulino‘s strong support for biodiversity and marine conservation, the agreement we have signed today consolidate Panama position as a green and blue global leader, allowing us to advance in our path to towards sustainable future, both for our country, our region and the world.”  

Since 2019, California and Panama have been regularly sharing knowledge and experiences on carbon pricing. CARB and MiAMBIENTE currently co-chair Carbon Pricing in the Americas (https://carbonpricingamericas.org/), a Pan-American collaboration and networking platform that works to promote the adoption and implementation of carbon pricing policy instruments and carbon markets in the Americas through sharing of information and best practices. 

The new partnership accelerates and deepens California and Panama’s ongoing partnership through workshops and technical training to help support the development of a national carbon market in Panama and drive emissions reductions through investment in cleaner, more efficient technologies and energy.  

Areas of cooperation include:  

• Implementation of cap-and-trade programs and the establishment of a carbon market in Panama. 
• Development of systems to measure, report, and verify greenhouse gas emissions. 
• Creation of greenhouse gas inventories at national and local levels. 
• Use of standards like the California Tropical Forest Standard to quantify emissions reductions. 
• Carbon sequestration through nature-based solutions. 
• Reduction of industrial greenhouse gas emissions. 
• Alignment of financial investments with climate goals, including lessons from dedicating Cap-and-Trade Program auction proceeds to California Climate Investments. 

How we got here 

California is one of the world’s biggest economies and a leader in fighting climate change. As part of this effort, the state collaborates with both national and subnational jurisdictions to help build stronger climate programs and reduce emissions globally. These activities are successfully assisting in implementing a variety of efforts around the world. This support is making it easier for both developing and developed countries to take stronger action on climate change. 

• In March 2025, Governor Newsom signed a new partnership with Sonora (https://www.gov.ca.gov/2025/03/17/california-and-sonora-sign-new-partnership-advancing-cross-border-action-for-cleaner-air-and-clean-energy/) Governor Alfonso Durazo Montaño advancing cross-border action for cleaner air and clean energy.  
• In February 2025, California and a consortium of 21 Brazilian states partnered together (https://www.gov.ca.gov/2025/02/27/governor-newsom-partners-with-21-brazilian-state-governors-to-protect-the-environment-cut-harmful-pollution/) to combat pollution and foster sustainable economic growth.  
• Last year, Governor Newsom signed an MOU with Emilia-Romagna (https://www.gov.ca.gov/2024/05/17/in-bologna-governor-newsom-launches-new-climate-partnership/) during a visit to Italy for the Vatican’s Climate Summit, and another MOU in May with Gyeonggi Province (https://www.gov.ca.gov/2024/05/06/california-partners-with-gyeonggi-province-the-center-of-south-koreas-economy-and-high-tech-industry/), South Korea – the center of the country’s economy and high-tech industry. Governor Newsom also welcomed delegations from Sweden (https://www.gov.ca.gov/2024/02/20/governor-newsom-welcomes-swedish-delegation-to-california-signs-climate-partnership/) and Norway (https://www.gov.ca.gov/2024/04/16/california-and-norway-ink-new-climate-partnership/) and renewed climate partnerships with the two governments. 
• In 2023, Governor Newsom led a California delegation to China, where California signed five MOUs (https://www.gov.ca.gov/2023/10/30/what-governor-newsoms-trip-to-china-accomplished/) – with China’s National Development and Reform Commission, the provinces of Guangdong and Jiangsu, and the municipalities of Beijing and Shanghai. The trip also resulted in a first-of-its-kind declaration (https://www.gov.ca.gov/wp-content/uploads/2023/10/JOINT-STATEMENT-10.25.docx.pdf) by China and California to cooperate on climate action like aggressively cutting greenhouse gas emissions, transitioning away from fossil fuels, and developing clean energy.  
• At COP28 in 2023, California launched the Mediterranean Climate Action Partnership (https://www.gov.ca.gov/2023/12/07/what-california-accomplished-at-cop28/#:~:text=Mediterranean%20Climate%20Action,and%20natural%20systems.), which works to support members in quickly adapting to climate impacts and emergencies, and the Subnational Methane Action Coalition (https://ww2.arb.ca.gov/news/california-launches-methane-cutting-effort-subnational-governments-cop28), which supports collaboration between subnational governments committed to reducing methane. During COP28 California also joined the Global Offshore Wind Alliance (https://www.energy.ca.gov/news/2023-12/california-joins-global-offshore-wind-alliance-ambitious-commitment), whose members are committed to the rapid ramp-up of offshore wind.  
• Also in 2023, California signed a MOU with the Chinese province of Hainan (https://www.gov.ca.gov/2023/08/03/california-and-chinese-province-of-hainan-partner-to-fight-climate-change/), as well as with Australia (https://www.gov.ca.gov/2023/08/15/governor-newsom-announces-new-climate-partnership-with-australia/). 
• In 2022 alone, California signed Memorandums of Cooperation with Canada (https://www.gov.ca.gov/2022/06/09/at-summit-of-the-americas-california-and-canada-partner-to-advance-bold-climate-action/), New Zealand (https://www.gov.ca.gov/2022/05/27/california-and-new-zealand-partner-to-advance-global-climate-leadership/) and Japan (https://www.gov.ca.gov/2022/03/21/california-and-japan-partner-to-bolster-economic-relations-and-trade-tackle-climate-change/), as well as Memorandums of Understanding with China (https://www.gov.ca.gov/2022/04/18/california-advances-global-climate-leadership-through-expanded-partnership-with-china/) and the Netherlands (https://www.gov.ca.gov/wp-content/uploads/2022/09/9.6.22-MOU-text.pdf?emrc=fe6f72), to tackle the climate crisis. The Governor also joined with Washington, Oregon, and British Columbia (https://www.gov.ca.gov/2022/10/06/west-coast-leaders-double-down-on-bold-actions-to-fight-climate-crisis/) to recommit the region to climate action.