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The Costa Rica Case Héctor Arce-Benavides National Director of REDD + Strategy

‘ Green fiscal policies: creating mitigation incentives and mobilizing revenues for climate action through environmental taxes and subsidy reform. The Costa Rica Case Héctor Arce-Benavides National Director of REDD + Strategy. Aspects about Costa Rica. Total Area 51,100 Km 2

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The Costa Rica Case Héctor Arce-Benavides National Director of REDD + Strategy

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  1. ‘Green fiscal policies: creating mitigation incentives and mobilizing revenues for climate action through environmental taxes and subsidy reform The Costa Rica Case Héctor Arce-Benavides National Director of REDD + Strategy

  2. Aspectsabout Costa Rica Total Area 51,100 Km2 Population 5,000,000 ForestCover 52% MainEconomicActivities tourism Services 5% of theplanet'sbiodiversity More than 70% of thelandbelongs to private

  3. PublicPolicies and Legislation

  4. Redd+ Activities COSTA RICA HAS PERFORMED REDD + ACTIONS FOR MORE THAN 30 YEARS • PUBLIC POLITICS AND LEGISLATION • FINANCIAL MECHANISMS • SYSTEM OF WILD PROTECTED AREAS

  5. PublicPolicies and Legislation 70's and 80's Creation of theNational Park System Tax incentives to reforest and protecttheforest 90’s Legislation in accordancewithinternationalregulations (Rio Summit) Prohibition of Change of Use in case of forest Creation. of FONAFIFO and thePaymentforEnvironmentalServices Fuel Tax (3,5% to the PES Program)

  6. Achievements

  7. Achievments

  8. 1.2 millionhectaresundercontracts (1997-2017) • 16,712 contractssubscribed • 88% in forestprotection, theremaining 12% betweenreforestation, agroforestrysystems and forestmanagement • As of today, 407,000 hectaresundercontract • Aculumulatedinvestment of more than 600 milliondollars (30 million per year) directed to rural areas • Theprogramisfinancedbynationalresources (taxonhydrocarbons, waterfees, amongothers) • TheProgram has helped to maintain and recoverforestcover

  9. Reduction of forestemissions in Costa Rica, history 141,531,721 tCO2-e 25,127,723 tCO2-e Source: FONAFIFO. (2018). Costa Rica EmissionReductionsProgram to the FCPF CarbonFund. San José, Costa Rica. Retrievedfrom https://www.forestcarbonpartnership.org/sites/fcp/files/2019/Feb/Costa%20Rica%20ERPD%20EN_Oct24-2018_clean.pdf

  10. Learned lessons

  11. Solid legal basis • StrongInstitutional Base • Local Financing • Mechanisms of Accountability • Importantmechanismforfinancialtransfers to rural areas and indigenousterritories • Itisnecessary to automateprocesses and reduce transactioncosts

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