- In this commentary, Diego Vincenzi, current chief of staff for the Minister of Environment and Energy in Costa Rica, highlights how Costa Rica halted deforestation, achieved 57% forest cover after reaching a low of 21% in the 1980s, and protected 25% of its land while becoming the top per capita agricultural exporter in Latin America..
- Costa Rica’s success stems from a shift in the 1990s towards greener environmental legislation, introducing the Payment for Ecosystem Services (PES) scheme funded by a fossil fuel tax, which compensates landowners for forest conservation and now includes untitled lands, benefiting native populations.
- FONAFIFO, the institution managing PES, is expanding the program to cover 182,000 hectares annually and introducing biodiversity certificates for estates, aiming to broaden conservation efforts to include mangrove ecosystems, linking land and water for a more sustainable environment.
- This is a commentary and does not necessarily reflect the views of Mongabay.
In just one generation, Costa Rica halted deforestation and reversed land degradation. Currently, Costa Rica boasts 57% forest cover, with 25% of its land territory protected. All of this has been achieved while the country’s agricultural sector became the most robust per capita agricultural exporter in Latin America. Remarkably, Costa Rica’s agricultural sector produces net zero emissions! But how can a small country with limited space achieve this?
Years ago, we discovered that conservation pays. For some, this notion might sound contradictory, but for us Costa Ricans, it’s a reality. During the 1990s, environmental legislation in Costa Rica shifted towards a greener framework. We moved from a “subsidy” concept in forest conservation to an “economic recognition” of the ecosystem services our forests provide.
The Payment for Ecosystem Services (PES) scheme is primarily funded by a tax on fossil fuels. Traditionally, PES was granted to estates or people with ownership rights to the land meant for protection. This scheme is institutionalized through a fund called Fondo Nacional para el Financiamiento Forestal (FONAFIFO), a state-of-the-art institution that has gained the necessary experience and expertise to understand the needs of conservation and the flexibility required to meet those needs.
Now, FONAFIFO is introducing new components to the traditional PES scheme. Over the past couple of years, one of the first changes is that PES now pays for land that has not been titled. This directly benefits many of our native populations and people who have possession of the land but have not claimed property rights. We are extending conservation efforts to everyone involved in conserving.
Other changes include merging all funding sources, which will strengthen the program and increase its capacity to generate new contracts, expanding from 40,000 hectares per year to 182,000 hectares per year. But to me, the most valuable aspect of the new scheme is the recognition of biodiversity in forests under PES. We will create biodiversity certificates for estates that protect their forests and, by extension, biodiversity.
Once again, Costa Rica leads by example, creating a new mechanism for conservation payments that encompasses not only forest conservation but also biodiversity conservation. We all benefit from this, not just those of us living here but the rest of the world. Hopefully, more countries will implement similar schemes or models to create value in conservation and biodiversity.
What’s next for us? We aim to broaden the scheme to include our mangrove ecosystems, linking land with water, connecting SDG 6 with SDG 14, and making our landscapes more sustainable. This will bring benefits to people making responsible use of the mangroves.
Costa Rica’s environmental maturity has taught us that all ecosystems are interconnected and cyclical, and we must create the right conditions for both conservation and production. Healthy land use and healthy marine use are in the best interest of us all; a resilient and productive environment benefits everyone.
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