- Country: Costa Rica
- Geographic Coverage: National & Regional
- Lead Local Agencies:
- Ministry of Environment and Energy (MINAE)
- National Forestry Financing Fund (FONAFIFO)
- Environmental Bank Foundation (FUNBAM)
- Fundacion Para El Desarrollo De La Cordillera Volcanica Central (FUNDECOR)
- Ministry of Foreign Affairs and Worship
- Costa Rican Embassy to Republic of Korea
- Costa Rica’s “Environmental Bank Foundation (FUNBAM)”, a specialized financing vehicle for sustainable development.
- South-South Cooperation/ Knowledge Sharing
GGGI is working with the Government of Costa Rica (GoCR) to foster sustainable economic growth, reduce carbon emissions, and promote social inclusion, particularly through advances in the AFOLU sector (agriculture, forestry, other land uses). In support of Costa Rica’s national commitment to Carbon Neutrality by 2021 with total net emissions comparable to 2005, GGGI has partnered with the Ministry of the Environment and Energy (MINAE) and the National Forestry Financing Fund (FONAFIFO) to design, restructure, and scale up a specialized financing vehicle for ecosystem management across the country, titled “Environment Bank Foundation (FUNBAM)”.
With the enhanced capital (to be) mobilized by FUNBAM, the project will contribute to Costa Rica’s NDC targets by channeling capital towards agro-forestry industries, forest conservation, and ecosystem-based adaptation, and the empowerment of farmers and entrepreneurs in green growth sectors of Costa Rica. This partnership will also contribute to the achievement of SDGs targets, particularly Goal 15 (Life on Land) and Goal 13 (Climate Action).
In specific, GGGI works on the development of FUNBAM’s pipeline projects linked to their priority business areas (i.e. biodiversity conservation, sustainable productive landscapes, water resources protection, and sustainable cities), and provides technical assistance to structure and finance them with the support of international and domestic investors across both public and private sectors. Currently, two pipeline projects have been identified and are being structured for external financing. Detailed information is (to be) available in the investment teasers (or project fact sheets) attached below.
o Project #1
“Forest Plantation Usage Program (PPAF)” is a credit-financing scheme designed for local agricultural producers in Huetar North region in Costa Rica, for them to plant trees in their agricultural and silvopastoral systems, with the main purpose of producing timber/wood for own consumption, mitigating greenhouse gas emissions, and creating local job opportunities.
o Project #2
“Sustainable Timber Management Program (SUTIM)” aims to create a timber marketplace in Costa Rica with a new payment scheme under which buyers pay timber producers along a certain number of years until the trees are ready to be cut, guaranteed by the expected value of contracted woods/timber in the future. A nation-wide (or regionally focused) feasibility study is required to test out the concept, thus GGGI is planning to conduct the study with FUNBAM in 2017-2018.
Costa Rica is one of the founding members of GGGI and ratified the GGGI Establishment Agreement in 2014. GGGI’s engagement with Costa Rica began in 2015 as part of the organization’s South-South knowledge sharing program (supported by the earmarked fund from KOICA) that was designed to promote and disseminate Costa Rica’s knowledge and experiences on land-use and forest management, where the country has seen significant success.
Click image to see a policy analysis report on Costa Rica’s Payment for Ecosystem Services (PES)
Read a blog – Purple Rain in San Carols
Watch the “FUNBAM 2.0 – Enhancing Capital
Watch the “South-South Knowledge Sharing in 2016”