Costa Rica

Country Context & Primary Activities for PMR Support

Policy context

Costa Rica aims to achieve a “carbon neutral” economy by 2021. This commitment is incorporated into both the National Development Plan, 2011–2014, the country’s highest-level policy statement, and the National Climate Change Strategy, a long-term strategy for sustainable development that seeks to align the country’s low carbon growth and eco-competitiveness strategies.

Leveraging market instruments to drive an eco-economy

Central to achieving a carbon neutral economy is the establish¬ment of a domestic carbon market to meet the goal in a flexible, cost-effective way, while providing financial incentives to the private sector for investment in low emissions technology and to develop the country’s eco-competitive strategies.

The PMR will support Costa Rica to...

• Complete the design for Costa Rica’s domestic carbon market;
• Build capacity for GHG data reporting and registry;
• Strengthen domestic demand for emission reduction units; and
• Consolidate supply of emission units across a range of sectors.

Source: PMR Market Readiness Proposal submitted by the Costa Rican Ministry of Environment and Energy, February 2013