Forestry Investment News
Carbon credit deal aims to regenerate forests
08/10/2013
Costa Rica has signed an agreement to sell carbon credits in the first large-scale deal of its kind designed to protect and regenerate its forests.
The initiative between the Costa Rican Government and the Forest Carbon Partnership Facility (FCPF) could be worth up to US $63m and protect 340,000 hectares of forests. If successful, the scheme could act as an international model for forestry protection which could be used in the Brazilian rainforest and elsewhere.
Under a letter of agreement, the FCPF’s Carbon Fund will buy carbon credits, which will help fund Costa Rica’s Payments for Environmental Services (PES) forestry regeneration and protection scheme. For more than 10 years, PES has provided payments to landowners who plant trees and work to conserve biodiversity. Under the new agreement, 10 per cent of the land targeted for protection and regeneration belongs to indigenous people.
This latest scheme will also be used towards Costa Rica’s efforts to meet its 2021 target of becoming a carbon neutral country. Around 80 per cent of its carbon emissions come from forestry and agriculture, and better management techniques need to be adopted if it is to meet the deadline.
Costa Rica, one of the founding nations of the Rainforest Coalition, is already considered one of the world's pioneers in finding new ways to support sustainable growth and protect its tropical rainforests.
Fabrizio Zarcone, the World Bank Representative for Costa Rica, said: “The World Bank expects that this new results-based initiative will contribute significantly to Costa Rica’s efforts to manage forest and agricultural landscapes holistically.
“It further complements other initiatives that the World Bank supports in Costa Rica, such as efforts to increase sustainable domestic wood production, greening the construction sector by promoting increased use of certified wood products in new residential and commercial buildings, and generating new employment opportunities for small farmers.”
The initiative between the Costa Rican Government and the Forest Carbon Partnership Facility (FCPF) could be worth up to US $63m and protect 340,000 hectares of forests. If successful, the scheme could act as an international model for forestry protection which could be used in the Brazilian rainforest and elsewhere.
Under a letter of agreement, the FCPF’s Carbon Fund will buy carbon credits, which will help fund Costa Rica’s Payments for Environmental Services (PES) forestry regeneration and protection scheme. For more than 10 years, PES has provided payments to landowners who plant trees and work to conserve biodiversity. Under the new agreement, 10 per cent of the land targeted for protection and regeneration belongs to indigenous people.
This latest scheme will also be used towards Costa Rica’s efforts to meet its 2021 target of becoming a carbon neutral country. Around 80 per cent of its carbon emissions come from forestry and agriculture, and better management techniques need to be adopted if it is to meet the deadline.
Costa Rica, one of the founding nations of the Rainforest Coalition, is already considered one of the world's pioneers in finding new ways to support sustainable growth and protect its tropical rainforests.
Fabrizio Zarcone, the World Bank Representative for Costa Rica, said: “The World Bank expects that this new results-based initiative will contribute significantly to Costa Rica’s efforts to manage forest and agricultural landscapes holistically.
“It further complements other initiatives that the World Bank supports in Costa Rica, such as efforts to increase sustainable domestic wood production, greening the construction sector by promoting increased use of certified wood products in new residential and commercial buildings, and generating new employment opportunities for small farmers.”
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