Panama's tropical environment supports an abundance of plants. Forests dominate, interrupted in places by grasslands, scrub, and crops. Nearly 40 percent of Panama is wooded. Deforestation is a continuing threat to the rain-drenched woodlands. Tree cover has been reduced by more than 50 percent since the 1940s. Subsistence farming, widely practiced from the northeastern jungles to the southwestern grasslands, consists largely of corn, bean, and tuber plots.
Mangrove swamps occur along parts of both coasts, with
banana plantations occupying deltas near Costa Rica. In many places, a multi-canopied rain forest abuts the swamp on one side of Panama and increases to the lower reaches of slopes in the other.
REDD+ reference levels and monitoring Under the
UNFCCC REDD+ framework, Panama has submitted three national
forest reference level (FRL) packages. On the UNFCCC REDD+ Web Platform, the country's 2018 and 2022 packages are listed as having assessed reference levels, while a 2025 package is listed as under technical assessment. All three list a national strategy and
safeguards information; a
national forest monitoring system is listed as reported only for the 2022 package. Panama's first assessed FRL, submitted in 2018, covered all five REDD+ activities at national scale. After revision during the technical assessment process, the assessed FRL was -27,735,675
t CO2 eq per year for a 2000-2015 reference period, revised from -56,991,334 t CO2 eq per year for 2006-2015 in the original submission. The technical assessment states that it included
CO2 emissions and removals, together with
CH4 and
N2O from forest fires, and covered
above-ground biomass,
below-ground biomass, deadwood and
litter, while excluding
soil organic carbon. The assessment states that it again included CO2 emissions and removals, plus CH4 and N2O from fires, and covered above-ground biomass, below-ground biomass, deadwood and litter, while excluding soil organic carbon. According to the submission, it again covers all five REDD+ activities at national scale and includes above-ground biomass, below-ground biomass, deadwood, litter and soil organic carbon, while excluding harvested wood products. In this framework, tree cover refers to vegetation taller than 5 m (including natural forests and tree plantations), and tree cover loss is defined as the complete removal of tree cover canopy for a given year, regardless of cause. For Panama, country statistics report cumulative tree cover loss of from 2001 to 2024 (about 9.3% of its 2000 tree cover area). For tree cover density greater than 30%, country statistics report a 2000 tree cover extent of . The charts and table below display this data. In simple terms, the annual loss number is the area where tree cover disappeared in that year, and the extent number shows what remains of the 2000 tree cover baseline after subtracting cumulative loss. Forest regrowth is not included in the dataset. ==Coastline==