NAMA for Panela Sector in Colombia

Panela (raw cane sugar) production is a strategic sector for Colombia. It is the second largest producer of panela in the world after India, and panela is the second largest agroindustry after coffee in Colombia. The sector provides partial employment to 350,000 families on 70,000 farms and 22,000 panela mills that produce 1,500,000 tons of panela per year – making it the main source of employment in rural areas of Colombia.

Panela processing takes place in sugar mills that are called trapiches. The sector typically uses traditional non-environmentally friendly techniques, technologies and approaches across the supply chain. Burning firewood and (when there is firewood shortage) used tyres for heat generation leads to very inefficient combustion processes with calorific losses of between 60-70%. It is estimated that around 70% of all used car tires in Bogota are burnt in boilers for the production of panela. The use of these fuels leads to increasing deforestation and releases significant amounts of GHGs and sulphur dioxide which have adverse climate and health effects. Additionally, the panela production machinery is mainly powered with diesel which causes additional costs and air pollution. Low operating profits are the result of these inefficient equipment and production processes, which consequently limit salaries and employment opportunities, and ultimately lead to poverty and an increased emigration.


Colombia’s Ministries of the Environment and Agriculture (MADS and MADR), together with Fedepanela, the national association of panela producers, want to reverse the situation described above. In cooperation with Carbon Trust, they turned to ADMIRE with a project aimed to develop a National Appropriate Mitigation Action (NAMA). This entailed establishing GHG scenarios, designing an MRV system and conducting a financial analysis of the interventions, which are essential components of such a NAMA.

Click to read the full project brief.



Report - NAMA Summary Report

Report - NAMA Financial Model

Report - Baseline and NAMA Scenario

Report - NAMA MRV System

Report - NAMA Financing Mechanism

NAMA Implementation Plan


21 JANUARY 2022