Central America & Caribbean

Panama

Cerro Patacón, the country's largest disposal site and described as an open dump, receives 2,000-3,000 t/day and at least 40% of national waste (TVN, 2024); only 76% of the population has collection service (IDB, 2024). A UTP study estimated about 2.35 million tires discarded in 2018, and fires at illegal tire dumps were reported in 2026.

Regulatory framework

The rules that shape the business

Ley 33 2018 In force

Ley que establece la Política Basura Cero y su marco de acción para la gestión integral de residuos

Framework law for integrated waste management (Zero Waste Policy), enacted 30 May 2018 (Official Gazette 28537-C). It includes extended producer responsibility as a principle for special-handling waste, but no operating tire EPR scheme could be verified.

View regulation · gacetaoficial.gob.pa

Ley 518 2026 In force

Ley que permite incorporar llantas recicladas en mezclas asfálticas para la red vial

Allows recycled end-of-life tires in road surfaces and stabilized bases under MOP-approved specifications; MOP must create a materials-testing department, and material must come from local consumption and be processed by domestic industry. It does not create EPR.

View regulation · telemetro.com

Ley 187 2020 In force

Ley que regula la reducción y el reemplazo progresivo de los plásticos de un solo uso

Law of 2 December 2020 phasing out and replacing single-use plastics (straws, plates, stirrers, swabs, etc.); its 2022 regulation assigns enforcement to Customs, ACODECO and MiAMBIENTE.

View regulation · gacetaoficial.gob.pa

Ley 45 (reglamentada por D.E. 45 de 2009) 2004 In force

Régimen de incentivos para sistemas de generación hidroeléctrica y otras fuentes nuevas, renovables y limpias

Law of 4 August 2004: import-duty exemption for equipment and an income-tax credit of up to 25% of direct investment based on CO2 reductions, for 'other new, renewable and clean sources'; biomass is not named explicitly in the regulation.

View regulation · faolex.fao.org

Context

The residue, in figures

2.352.352 unidades

Discarded tires (academic estimate)

2018 · revistas.utp.ac.pa

2.000-3.000 t/day

Waste received at Cerro Patacón

2024 · tvn-2.com

76%

Population with collection service

2024 · iadb.org

1.472.262

MSW generation (tonnes/year)

c. 2010-2016 (What a Waste 2.0, publ. 2018) · datacatalogfiles.worldbank.org

23,4

MSW sent to open dumps (%)

c. 2010-2016 (What a Waste 2.0, publ. 2018) · datacatalogfiles.worldbank.org

Incentives

Law 45 of 2004: import-duty exemption on equipment and a tax credit of up to 25% of direct investment (based on CO2 reductions) for new, renewable and clean sources. Its application to biomass or waste plants is not named explicitly and should be confirmed with ASEP. Free zones and carbon markets: not verified.

Which technology fits Panama

Priority feedstock: End-of-life tires and non-recyclable plastics
Why: There is no tire EPR, but an estimated 2+ million tires a year, illegal dumps with fire risk, and since 2026 Law 518 requires recycled rubber to be processed domestically. Pyrolysis recovers value from the fraction not used in asphalt and yields oil, carbon black and steel.

PYR

Pyrolysis

From end-of-life tires to products with a market.

Learn more

Sources consulted

Reference information compiled from public sources as of October 2026. It is not legal advice; confirm each regulation is current before making decisions.

Verification level: Medium

Other countries in the region

Costa Rica Guatemala Honduras El Salvador Nicaragua Dominican Republic

Projects and proposals

Tell us what residue you have and what you want to obtain.

With the material type, available volume and location we prepare a preliminary technical assessment and the plant scope.

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