Panama Canal: Fostering a climate-resilient operational environment for a sustainable future

In an exclusive interview to SAFETY4SEA, Ilya Espino de Marotta, who is the first Chief Sustainability Officer for the Panama Canal & Deputy Administration, reveals her priorities to address the challenges posed by climate change. The Canal has always been focusing on sustainability, however it now embarks on a new and more ambitious era. Following the implications of the recent drought, the Canal has implemented an operational strategy and has taken action with investments and collaborations to ‘’thrive in a new climate economy’’. 

Ilya Espino de Marotta mentions how the Panama Canal will ensure resilience and longevity of its operations, highlighting that a more robust water management system has become a critical priority. Embracing responsible and sustainable business practices is not just a choice but a necessity, she concludes.  

SAFETY4SEA: As the first Chief Sustainability Officer for the Panama Canal, what unique perspective or experiences do you bring to this role?

Ilya Espino de Marotta: Having started my career as the sole female engineer on the shipyard, I bring to the table an understanding of the operational intricacies and engineering demands of the Canal. My subsequent position as Executive Vice President for Engineering allowed me to oversee the transformative Panama Canal Expansion Program, with firsthand insight into large-scale infrastructure projects and their impacts. Moreover, my role as Vice President of Operations provided me with valuable experience in managing the day-to-day functioning of the Canal, ensuring its efficiency and reliability. In my most recent position as Deputy Administrator, I have, among other responsibilities, overseen the implementation of effective water-saving measures, emphasizing the importance of sustainability and resilience in our operations. These unique experiences provide an important perspective in integrating sustainability practices into every facet of the Canal’s management, ensuring the waterway’s long-term viability and environmental stewardship. 

S4S: What are your top priorities in the agenda for the next years? 

I.E.M.: While the Panama Canal has long focused on sustainability, the accelerating implications of climate change require stronger action. As an international trade hub, we have an opportunity to not only drive sustainability at the Panama Canal, but also help shape a more sustainable and productive ecosystem for global trade. Included in our top priorities on the agenda for the next years is our ambition to reach net-zero greenhouse gas (GHG) emissions by or around 2050. Over the next six months, we will publish the results of a best-in-class GHG inventory and commit to science-based targets backed by a tangible implementation plan. This endeavor is not solely about initiating new projects; it is about fundamentally transforming our business. It aims to empower our customers and employees to embrace transformation so that collectively, we can navigate climate risk and thrive in a new climate economy. 

S4S: What is currently the biggest challenge for the Panama Canal from your perspective?  

I.E.M.: The biggest challenge confronting the Panama Canal at present mirrors that of numerous other vital waterways worldwide, including the Rhine River, the Amazon, and the Mississippi: the accelerating implications of climate change.  In 2023, the Panama Canal Watershed experienced its third driest year on record. That year, the presence of the El Niño phenomenon and the delayed onset of the rainy season directly influenced the levels of freshwater in lakes that feed the Canal. Despite concerted efforts to conserve water, the level of Gatun Lake continued to plummet. Consequently, in the face of low rainfall and subsequent decrease in lake levels, the Canal implemented an operational strategy prioritizing water conservation and transit reliability. A reduction in daily transits was deemed necessary to ensure an adequate water supply for both human consumption and business continuity during the impending dry season. 

S4S: With the goal of achieving net zero emissions by 2050 and the increasing implications of climate change, how do you intend to adapt and innovate the sustainability approach of the Panama Canal to address evolving environmental challenges? 

I.E.M.: As we embark on a new, more ambitious era of sustainability at the Canal, we are committed to implementing a series of initiatives to address the challenges posed by climate change. Currently, we are collaborating with the International Finance Corporation (IFC), part of the World Bank Group, to finalize the Panama Canal’s GHG emissions inventory, with a commitment to publishing the results within six months. Additionally, this year, we will conduct a comprehensive climate risk assessment and commit to the Science Based Targets initiative (SBTi), setting both short and mid-term reduction goals. Subsequently, we will implement aggressive emissions reduction targets.  Beginning in 2024, we will integrate sustainability into our capital investments totaling over $8.5 billion over the next five years. Of this, $3.5 billion will be allocated to infrastructure and equipment enhancements, including the installation of a photovoltaic plant, procurement of electric vehicles and hybrid tugs, and various other sustainability-focused investments. Additionally, more than $2 billion will be dedicated to new initiatives prioritizing sustainability. An investment of $2 billion is earmarked for the implementation of a robust water management system. The remainder, exceeding a billion dollars, will support digital transformation and decarbonization-focused improvements throughout the waterway. The Panama Canal is committed to achieving net zero carbon emissions by 2050, aligning with global sustainability goals. To achieve this target, we will actively engage with stakeholders across the maritime value chain to foster a climate-resilient operational environment. Through these transformative measures, we are confident in our ability to enable our customers and employees to adapt and thrive in a new climate economy. 

S4S: How do you plan to engage stakeholders, including shipping companies, environmental organizations, and local communities, in the development and implementation of Panama Canal’s sustainability strategy? 

I.E.M.: Engaging stakeholders, including shipping companies, environmental organizations, and local communities, is paramount in shaping and implementing the Panama Canal’s sustainability strategy. We are committed to a proactive and strategic approach to ensure their involvement and collaboration. 

• Firstly, we will initiate regular dialogue sessions with our customers to understand their perspectives, concerns, and needs regarding sustainability practices. By fostering open communication channels, we aim to co-create solutions that align with industry standards while advancing our sustainability goals. 
• Secondly, environmental organizations will be key partners in driving our sustainability agenda forward. We will actively seek their expertise and feedback on conservation efforts, ecological impact assessments, and best practices in mitigating environmental risks associated with Canal operations. 
• Thirdly, engaging with local communities surrounding the Panama Canal is crucial for building trust and achieving true change that will lead to the sustainable development of the Canal watershed. As we’ve done in the past, we will continue to conduct outreach programs and community forums to ensure that their voices are heard and their interests are incorporated into our sustainability initiatives.   

Through these concerted efforts, we aim to foster a collaborative and inclusive approach to sustainability that benefits all stakeholders involved while ensuring the resilience and longevity of the Panama Canal’s operations. 

S4S: Do you believe the maritime industry is moving in the right direction? What do you see as the defining ESG trends driving maritime toward the future? 

I.E.M.: While a great deal of work remains to be accomplished, the maritime industry is undeniably progressing in the right direction as it continuously embraces more responsible and sustainable practices. A pivotal aspect of this evolution is the industry’s shift towards cleaner energy sources, marking a significant stride in reducing its carbon footprint. This move not only aligns with global environmental objectives but also holds promise in contributing substantially to the fight against climate change. Further, the industry’s commitment to reducing GHG emissions stands as a defining ESG trend driving maritime toward a more sustainable future, emphasizing the sector’s commitment to environmental stewardship and long-term viability. 

S4S: In your view, what has been a remarkable development/Innovation you have seen on the sustainability front in the maritime industry? 

I.E.M.: One remarkable development I’ve seen on the sustainability front has been the industry’s readiness to support and implement emission reduction initiatives, accompanied by setting ambitious targets. This proactive approach not only reflects a commitment to environmental stewardship but also promises tangible benefits for customers. Such initiatives signify a pivotal shift towards more environmentally conscious practices, setting a promising precedent for the industry’s sustainable evolution. 

S4S: Do you have any new projects/ plans that you would like to share with industry stakeholders?  

I.E.M.: In recent years, the implementation of a more robust water management system has become a critical priority, and we continue to invest in long-term solutions. Together with the U.S. Army Corps of Engineers, we confirmed that alternatives within the Panama Canal’s jurisdiction are not sufficient to meet growing demand for water. Instead, we’ve identified a set of projects, including ones outside the Canal’s domain, that require that the government define and extend the limits of our watershed. While there is no simple answer or single project that can immediately solve the challenge of water, we remain committed to innovation and diligently seeking solutions. Our goal is to ensure we continue delivering reliable service to all customers. 

S4S: What is your key message to industry stakeholders with regards to a more sustainable future for the shipping industry?  

I.E.M.: Our key message to industry stakeholders regarding a more sustainable future for the shipping industry is clear: Embracing responsible and sustainable business practices is not just a choice; it’s imperative for the longevity and success of both the Canal and our industry. We are steadfast in our commitment to leading the charge towards sustainability while continuing to serve more than 180 maritime routes, connecting 170 countries, and reaching approximately 1,920 ports worldwide. By prioritizing sustainable initiatives and continuously innovating, we remain confident in our ability to safeguard our route for years to come, all the while shaping a more sustainable ecosystem for global trade. 

source : safety4sea