General Environmental law - Law 41 of 1998

General Environmental Law – Law 41 of 1998 as amended principally by Law 8 of 2015.

Law 8 of 25 March 2015 created MiAmbiente and transferred to it the environmental responsibilities previously exercised by ANAM.

Official name: General Environmental Law of the Republic of Panama (Ley General de Ambiente)

Purpose

Law 41 establishes the legal framework for protecting, conserving, restoring, and sustainably managing Panama's environment and natural resources. It requires environmental considerations to be integrated into all public and private development decisions to achieve sustainable development.l 

Main Areas Covered

1. Environmental Protection

Law 41 establishes the general framework for environmental protection, including the protection and sustainable management of::

• Forests

• Wildlife

• Rivers

• Lakes

• Wetlands

• Mangroves

• Coral reefs

• Seagrass beds

• Beaches

• Islands

• Marine ecosystems

• Air quality

• Soil

• Water resources

• Biodiversity

2. Environmental Impact Assessments (EIAs)

One of Law 41’s most important provisions is the environmental assessment process. Projects, works or activities that may generate environmental risk or affect the environment must be evaluated under the applicable Environmental Impact Assessment regulations before they begin.

Whether a particular project requires an EIA—and the category of assessment required—depends on factors including its nature, scale, location and potential environmental impacts.

Projects that may require an EIA, depending on their scale, location and potential impacts, include:

• Roads

• Bridges

• Hotels

• Housing developments

• Marinas

• Docks

• Overwater construction

• Dredging

• Mining

• Quarries

• Transmission lines

• Wind farms

• Hydroelectric projects

• Landfills

• Industrial facilities

• Large tourism developments

The EIA evaluates:

• Effects on wildlife

• Forest loss

• Water quality

• Marine habitats

• Air quality

• Noise

• Social impacts

• Mitigation measures

3. Protected Areas

Law 41 supports Panama’s system for the creation, protection and management of areas such as:

• National Parks

• Forest Reserves

• Marine Protected Areas

• Wildlife Refuges

• Biological Reserves

• Wetland Protected Areas

Activities inside these areas are subject to stricter regulation and often require permits.

4. Wildlife Protection

The law supports the protection of:

• Native wildlife

• Endangered species

• Migratory species

• Critical habitats

• Breeding areas

• Nesting beaches

It works alongside Panama's wildlife-specific legislation.

5. Forest Protection

The law promotes:

• Sustainable forestry

• Forest conservation

• Reforestation

• Watershed protection

• Prevention of illegal logging

6. Marine and Coastal Protection

The law protects:

• Coral reefs

• Mangroves

• Seagrass beds

• Estuaries

• Beaches

• Coastal ecosystems

• Marine biodiversity

Projects that may affect marine or coastal ecosystems can be required to identify, prevent, mitigate, correct or compensate for their environmental impacts and to comply with the conditions of their environmental approval and Environmental Management Plan.

7. Water Resources

The law protects:

• Rivers

• Streams

• Lakes

• Aquifers

• Watersheds

• Coastal waters

It prohibits pollution that harms water quality or aquatic ecosystems.

8. Air Quality

The law regulates:

• Industrial emissions

• Smoke

• Dust

• Air pollution

• Odours

• Burning activities

Authorities may require pollution-control measures where necessary.

9. Pollution Control

The law addresses:

• Solid waste

• Hazardous waste

• Wastewater discharges

• Chemical pollution

• Oil spills

• Noise pollution

Anyone causing environmental damage may be held responsible for remediation and compensation.

10. Public Participation

Citizens have the right to:

• Access environmental information

• Participate in environmental decision-making

• Submit comments on certain EIAs

• Report environmental violations

• Request government enforcement

Public participation is a key principle of the law.

11. Environmental Responsibility

Developers and landowners must:

• Prevent environmental damage

• Minimize impacts

• Restore damaged ecosystems where required

• Comply with permit conditions

• Follow approved environmental management plans

Failure to do so can result in administrative or legal action.

12. Government Powers

The environmental authority (today the Ministry of Environment (MiAMBIENTE)) has authority to:

• Issue environmental permits

• Approve or reject EIAs

• Conduct inspections

• Suspend harmful activities

• Order corrective measures

• Impose fines and sanctions

• Require restoration of environmental damage

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Activities That May Be Prohibited, Restricted or Subject to Prior Authorization

• Polluting rivers, streams, wetlands, groundwater or coastal waters.

• Discharging wastewater without the required treatment, standards and permits.

• Disposing of hazardous or other regulated waste unlawfully.

• Clearing forests or cutting trees without the required authorization.

• Removing or damaging mangroves without lawful approval.

• Destroying or materially disturbing protected habitats.

• Harming protected wildlife or its critical habitat.

• Beginning a project before obtaining the environmental approval required by law.

• Failing to comply with an approved Environmental Management Plan, permit condition or environmental resolution.

 

Activities Generally Prohibited Without Authorization

• Polluting rivers or the sea

• Destroying protected habitats

• Damaging mangroves

• Illegal logging

• Constructing projects without the required environmental approval

• Discharging untreated wastewater

• Dumping hazardous waste

• Destroying protected wildlife habitat​

 

Relationship Between National and Municipal Authority

National environmental authority

Law 41 of 1998, as amended by Law 8 of 2015, establishes MiAMBIENTE as the State’s governing entity for environmental protection, conservation, restoration and the sustainable use of natural resources.

MiAMBIENTE has authority, within its legal competence, to regulate environmental matters, evaluate Environmental Impact Assessments, issue environmental resolutions and authorizations, carry out inspections, order corrective measures and apply administrative sanctions.

Other public authorities may also have responsibilities involving land use, construction, public health, coastal areas, fisheries, maritime matters and municipal development. These institutions are required to coordinate their environmental responsibilities in accordance with national law.

Municipal authority

Municipalities have powers relating to local administration, land use, municipal construction permissions, commercial activities and other matters assigned to them by law.

However, municipal authority must be exercised in accordance with Panama’s Constitution and national legislation. A municipal building or commercial permit does not replace an environmental approval, concession, discharge permit, forestry authorization or other national permit required by law.

Article 44 of Law 106 of 1973 provides that mayors must comply with and enforce the Constitution, the laws of the Republic, executive decrees and decisions of the ordinary and administrative courts.

What Happens if Permits Conflict?

A municipal permit does not authorize a developer to disregard national environmental law or the conditions of an environmental resolution.

Where a project lacks a required environmental approval or breaches environmental legislation, MiAMBIENTE may, within its legal powers and following the applicable procedure:

• Conduct inspections.

• Order preventive or corrective measures.

• Suspend activities or works.

• Initiate administrative sanctioning proceedings.

• Impose applicable sanctions.

• Require environmental restoration or remediation.

A municipal act that conflicts with national law may be challenged through the appropriate administrative or judicial procedures. The Third Chamber of Panama’s Supreme Court of Justice has jurisdiction over actions seeking judicial review or annulment of unlawful administrative acts.

The validity of any particular permit or municipal act depends on the facts, the legislation applicable to the project and the determination of the competent authority or court.