Costa Rica is grappling with maintaining its success in reforestation as it moves towards reducing its dependence on fossil fuels. Once plagued by high deforestation rates in the 1980s, the Central American country has transformed into a hub for ecotourism, attracting tourists worldwide with its diverse wildlife and natural beauty. However, the program that has compensated landowners for preserving their forests for the past 25 years relies almost entirely on fuel tax revenue, which is expected to decline as the country shifts towards electric transportation in its pursuit of net-zero emissions.
The government is exploring alternative funding options, including new taxes or a combination of existing ones. Tourists who visit Costa Rica to see its rich biodiversity may soon have a conservation fee added to their hotel bills. Additionally, Costa Rica will continue to pressure developed countries, the largest polluters, to contribute to conserving forests that store carbon.
Last year, Costa Rica boosted its reforestation efforts with President Rodrigo Chaves’ announcement of $16.4 million in funding from the World Bank for forests that reduce carbon emissions. The program is expected to bring in a total of $60 million by 2025 and help double the number of protected forests.
The National Forestry Financing Fund (FONAFIFO) hopes that the international community will do its part to preserve valuable forests. “If it benefits the world, it’s only fair that the world contributes to its protection,” said Jorge Mario Rodríguez Zúñiga, director of FONAFIFO.
Costa Rica’s reforestation program was established in 1996 through the Payments for Environmental Services (PSA) program, funded by the gas tax. The program currently enrolls over 680,000 acres and compensates landowners for conserving forests for four “environmental services”: water, scenic beauty, biodiversity, and carbon.
Tourism in Costa Rica has flourished, surpassing agriculture as the country’s main source of income. The number of visitors to protected natural areas has increased from 500,000 in 1990 to over 1.7 million in 2019. Some landowners, like Floripe Córdoba and Siegfried Kussmaul, were already committed to conserving their forests even before the PSA program was established.
The World Bank funding is open to landowners not enrolled in the PSA program but only reimburses for carbon. This raises questions about whether the $18 per 2.5 acres will attract many landowners. Conservation organizations like the Foundation for the Development of the Central Volcanic Mountain Chain (FUNDECOR) have been working to enroll landowners in the PSA program but are concerned about the decline in funding from reduced fossil fuels.
FONAFIFO is searching for additional funding to compensate for the loss of fossil fuel revenue and to add biodiversity as an environmental service. The organization is also exploring the possibility of tapping into private capital markets and collaborating with the tourism industry, which benefits greatly from forest conservation.
Despite the challenges, FONAFIFO remains hopeful and is taking steps to make it easier for landowners to participate in the program. Landowners can now register through a website, and the government uses satellite imagery to verify the existence of forests, reducing the need for site visits.
A voluntary program where tourists can offset their vacation emissions raised $600,000 last year, indicating that tourists may be willing to support a conservation fee. However, FONAFIFO’s Director, Rodríguez, noted that it is not the right time to launch such a fee given the ongoing economic difficulties from the pandemic.
The reforestation efforts in Costa Rica are commendable, and the country’s transformation from a nation with high deforestation rates to a hub for ecotourism is a remarkable achievement. However, the loss of funding from fossil fuel revenue is a significant challenge that the government must address. As the world moves towards sustainable and renewable energy sources, countries like Costa Rica must find alternative funding options for programs like the Payments for Environmental Services (PSA) that support conservation efforts.
The World Bank’s funding for forests that reduce carbon emissions is a step in the right direction, but more is needed to sustain the program in the long term. FONAFIFO is exploring other options, including tapping into private capital markets and working with the tourism industry, which benefits greatly from forest conservation.
In addition to funding, FONAFIFO is also making it easier for landowners to participate in the PSA program by allowing them to register through a website and using satellite imagery to verify the existence of forests. This reduces the need for site visits and makes it more convenient for landowners to participate.
The voluntary program that allows tourists to offset their vacation emissions raised $600,000 last year, indicating that tourists may be willing to support a conservation fee. However, Rodríguez noted that it is not the right time to launch such a fee given the ongoing economic difficulties from the pandemic.
The reforestation efforts in Costa Rica are crucial for preserving the country’s rich biodiversity and natural beauty. The government must find alternative funding options to sustain the program and ensure that the country remains a hub for ecotourism for generations.
