DR. RENÉ CASTRO SALAZAR

MINISTER OF ENVIRONMENT AND ENERGY

COSTA RICA C. A. 2013

COSTA RICAN LOW CARBON DEVELOPMENT STRATEGY

SOME YEARS AGO THIS WAS THE REALITY

It went from 75% of the country with forest in 1940 to 21% in 1987. Reversing deforestation seemed

impossible ...

STRIPTEASE

Forest coverage increases due Forest coverage increases due to domestic incentivesto domestic incentives

2010Forest Coverage

52,38%

Source : Estudio de cobertura forestal de Costa Rica 2009-2010 -FONAFIFO

More than 790 000 ha.

87% protection 13% other activities

Employment

generation more than

25000 work/year

FOREST COVERAGE, GDP AND POVERTY RATE, 1990-2010

MEETING ON FOREST POLICY WITH HEADS OF FORESTRY ADMINISTRATIONS OF THE MENA COUNTRIES

FOREST COVERAGE, GDP AND FEMALE’S PARTICIPATION ON WORKING FORCE, 1990-2010

MEETING ON FOREST POLICY WITH HEADS OF FORESTRY ADMINISTRATIONS OF THE MENA COUNTRIES

THE WORLD'S TROPICAL FORESTS SHOULD INCREASE IS IT POSSIBLE THE SALVATION OF TROPICAL FORESTS

FROM VIRTUAL EXTINCTION?

Estimates cite an annual cost of $5-6 billion to replicate Costa Rica’s PES system over the tropical belt and realize an increase in forest coverage in those countries.

STUDY CONFIRMS ECONOMIC POTENTIAL CONSERVATION IN COSTA RICA

• In 2009 protected areas generated US$1.5 billion according to a study of CINPE

• These areas provide ecological, economic and social services.

• This is reflected in two primary activities:

tourism, with US$ 1.080 billion (70.% of contributions),

and hydroelectric generation, with US$0.5 billion (26%).

Sournce: http://wfnode01.nacion.com/2010-08-05/AldeaGlobal/NotaPrincipal/AldeaGlobal2472165.aspx

Costa Rica tourist

visitation

New trails with universal accessibility features in National

Parks

SUSTAINABLE BIODIVERSITY FUND (FBS)

Is a patrimony incorporating financial resources to assure long-term payment for environmental services in areas of high

biodiversity.

Instrument of Banco Nacional, which latter institution directs 10%of its commission to the FBS.

BN-Ecomarchamo is a voluntary emission mitigating program introduced by the SBF valid for a one-year compensation of average emission per vehicle

Source: MINAET, The National Foundation for Forestry Financing (FONAFIFO) www.FONAFIFO.go.cr, may 2012

70 000 contribution members in 2013

NEW PRODUCTS FROM BANCO NACIONAL

Prepaid Tourist Card

Credit Card

COUNTRY PROHIBITS CHEMICAL IMPORTS THAT DESTROYS THE OZONE LAYER AND REDUCES

PRODUCTION COSTS BY 20%

Methyl bromide was used in flowers, melon and strawberry plantations

Source http://www.nacion.com/nacional/Costa-Rica-importar-quimico-destruye_0_1368063191.html

PETECHIA SETOPHAGA “REINITAS” PROTECT COFFEE CULTIVATION IN COSTA RICA

These birds reduce by about half the beetle infestation Hypothenemus hampeiby, to make a coffee plantation medium size save up to $ 9,400 in crop per year, an amount almost equal to the average per capita income in Costa Rica.

http://beta.nacion.com/vivir/ciencia/Reinitas-protegen-cultivo-Costa-Rica_0_1368063216.html

CARBON NEUTRAL BY 2021

Source: IMN, DSE, FONAFIFO, cálculos Ing. Feoli

DOMESTIC MARKET

E

-

R

-

C

= 0Emissions Reductions

Compensation

22 millionton CO2e

6 million ton CO2e

16 million ton CO2e

∑ E - ∑R - ∑C ± ∑CERs ± ∑VERs = 0

CARBON NEUTRAL BY 2021

Source: MINAE 2013

GLOBAL MARKET

Capture

User fee

H 2 O

DONORS 63 Million

Fuel TAX400Million

PES

BLUE CARBON

52,3% 58%

BAMBOO

Agroforestry

Loan

s

Capture

Capture

Capture

Year …2013

BANCO2

Blue Carbon

CO2 Neutral Companies

Quick pass

Mass transportation cleaner technologies

Less emissions

reductions

Capture

reductions

Year 2013… PARTNERS

PARTNERS

NAMAs

Less emissions

Guarantee, MRV, etc

Carbon Board 200 US $

Million

Sustainable Homes

Less emissions

Renewable energies

THANK YOU

DR. RENÉ CASTRO SALAZAR

MINISTER OF ENVIRONMENT AND ENERGY

COSTA RICA

CARBON INDIFFERENCE PRICE BETWEEN NATURAL FOREST PROTECTION AND COMPETING AGRICULTURAL ACTIVITIES

(IN $/TONS OF CARBON)

Crop or Activity

Private Natural Forest in the Buffer Zone of Protected Areas

La Amista

d

Rincón de la Vieja

Palo Verd

e

Piedras Blancas

Barra Honda

Guanacaste

Carara Barbilla

Coffee 386 219 275 168 228 226 211 227

Pineapples

372 458 522 524 502 469 549 487

Watermelon

309 378 432 431 415 389 455 403

Avocado

245 298 342 338 327 307 360 320

Plantain 244 297 341 337 326 306 359 319

Tomatoes

170 204 236 228 224 211 248 221

Forest Plantation

124 35 71 14 51 50 54 62

Banana 102 118 140 129 130 124 147 131

Oranges 63 71 86 74 78 76 90 81

Sugar Cane

61 68 83 70 75 73 87 78

Beans 27 25 35 20 28 29 36 33

Melons 23 20 30 15 23 24 31 28

Rice 12 6 14 <0 8 10 14 14

Mangoes

3 <0 1 <0 <0 <0 <0 1

Ref: Castro Salazar,R. Valuing the Environmental Service of Permanent Forest Stands to the Global Climate: the case of Costa Rica. UNDP June 1999.

CARBON EMISSIONS REDUCTION IN EACH PROTECTED AREA USING VARIOUS PRICE SCENARIOS

Price Scenarios

Proposed Protected Area Expansion

$10 $30 $50 $100 $200

Percentage of the Maximum

La Amistad 21 100 100 100 100

R de la Vieja 5 26 75 94 96

Palo Verde 18 74 100 100 100

Piedras Blancas 3 12 25 65 89

Barra Honda 20 46 66 90 98

Guanacaste 10 61 91 100 100

Carara 0 90 95 96 97

Barbilla 16 60 100 100 100

Study base case

14 89 95 98 99

Ref: Castro Salazar,R. Valuing the Environmental Service of Permanent Forest Stands to the Global Climate: the case of Costa Rica. UNDP June 1999.