Source: www.caribbeannewsglobal.com, Editor, First Published January 26, 2026 SAN JOSE, Costa Rica – Panama, with the support of the Inter-American Institute for Cooperation on Agriculture (IICA), is debating the incorporation of ethanol into the gasoline used by vehicles as part of a strategy to decarbonise land transportation, develop its agro-industrial sector and generate employment in rural areas. IICA is providing technical support in the discussion of the initiative, based on the premise that ethanol and other liquid biofuels—fuels produced from biological sources—represent a major opportunity for Panama and for the rest of the countries of the Americas, given the wide availability of biomass both in the isthmus and in the region. The Panamanian government, through the National Energy Secretariat (SNE), the Ministry of Agricultural Development (MIDA) and the Ministry of Commerce and Industries (MICI), together with actors linked to the agro-industry (AZUCALPA) and fuel companies, submitted to the legislative branch a bill to amend the law that proposes, in a first stage, a mandatory blend of fossil fuel with 10% ethanol. This fuel is produced from sugarcane and other plant-based raw materials. The initiative is already under debate in the National Assembly of Panama. “Ethanol is a bio-based fuel used globally. More than 60 countries have already incorporated it into their energy matrix, generally with 10% blends, as proposed in Panama. Today we are fully confident that it works perfectly in all engines, improving combustion in automobiles”, said IICA International Biofuels Specialist Agustín Torroba. The IICA official carried out a working visit to Panama during which he participated in a debate forum held at the Assembly and organised by the Commission PANAMA – IICA DISCUSSES ADDING ETHANOL TO ITS FUEL MIX on Commerce and Economic Affairs. He also met with representatives of the productive and industrial sectors. “In Panama, ethanol will have very positive effects on the agro-industry, especially along the sugarcane value chain. Based on the growth projections provided by the government, we estimate that 30,000 jobs could be created, both direct and indirect”, Torroba added. A TOOL FOR THE ENERGY TRANSITION With global production growing by 50 percent over the last decade, liquid biofuels continue to consolidate as a key tool for the energy transition. According to the 2024–2025 edition of the Atlas of 11 BUSINESS VIEW CARIBBEAN VOLUME 13, ISSUE 01 OPENING LINES
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