Payment for Environmental Services (PES) / Pago por Servicios Ambientales (PSA)
The PES has been implemented both in Costa Rica and other countries. By 2020, the program had allocated payments to thousands of landowners, covering approximately 1.3 million hectares of land and representing nearly 26% of Costa Rica’s total area. It has created a total of 12,118 contracts between the government and landowners who receive funds between 2010 and February 2024. These huge numbers explain how this program has become a cornerstone of Costa Rica’s environmental policy framework.
This policy has profoundly impacted the country’s biodiversity and ecological conservation efforts. Costa Rica’s Payment for Environmental Services (PES) program has significantly contributed to reforestation and forest protection. As a result, the country has reversed its deforestation trend and now boasts 59% forest cover, up from a low of 40% in 1986. This increase in forest cover has enhanced biodiversity, improved water quality, and increased carbon sequestration. The United Nations supports this, stating that the PES program has significantly bolstered biodiversity in the country.
Additionally, the PES program has seen a steady increase in applications. For instance, in 2020 alone, over 1,200 landowners applied to participate in the program, illustrating its popularity and the growing awareness among local communities regarding the importance of conservation. The program’s success is also reflected in the substantial financial incentives provided to landowners, which not only help sustain their livelihoods but also promote sustainable land use practices.
Carlos Manuel Rodríguez’s role in both ideating and implementing the PES program during his term as National Park Service Director (1995 – 1998) gained him popularity in the environmental policy-making arena of Costa Rica and propelled him to securing key leadership positions such as Minister and Viceminster of the Ministry of Environment and Energy in 1998. This program also gave him international recognition, which paved the way for him to serve later in roles at prominent global organisations such as Conservation International from 2006 – 2018 and the Global Environment Facility since 2020.
The PES program was so successful it was implemented after the 2000s in other countries that copied the Costa Rican model, such as Morocco in 2015, Peru in 2020, and now the Dominican Republic in 2023. This program has also contributed to international discussions and frameworks on climate change, including developing the United Nations’ REDD+ program, which aims to reduce deforestation and forest degradation emissions. This shows how this program has opened a door for new ways to address deforestation and the impact a relatively young Latin American democracy can have on global climate policy.
Marine and Coastal Project for the Ministry of Environment and Energy
The Marine and Coastal Program has been fully integrated into the Ministry of Environment and Energy operations, leading to the designation and effective management of marine protected areas (MPAs) and the implementation of policies to safeguard marine biodiversity. Through comprehensive legislation and dedicated efforts, the program has established a framework for the sustainable use and conservation of marine resources, ensuring long-term and economic benefits for the country.
The program led to many positive aspects in Costa Rica. First of all, MPAs has to be established and expanded to protect significant marine habitats and species. This has ensured the preservation of vital ecosystems, including coral reefs, mangroves, and aquatic wildlife. Moreover, it led to the improvement in the management practices that have promoted sustainable fishing, helping to maintain fish populations and marine health. Sustainable practices have helped stabilise the fishing industry, ensuring long-term economic benefits for coastal communities.
Coastal and marine conservation efforts have bolstered ecotourism, attracting tourists interested in diving, snorkelling, and viewing wildlife. This has provided a significant boost to the local economy, especially in coastal regions. In 2019, there were nearly 3 million tourists in Costa Rica, of which 80% are considered ecotourists.
Carlos Manuel Rodríguez’s work in marine conservation gained global attention, further establishing him as a key figure in international environmental policy circles. His environmental leadership and the achievements of the Marine and Coastal Program have elevated him as a leading figure in environmental conservation. He was honoured as the recipient of the inaugural Global Ocean Conservation Award by six organisations dedicated to promoting marine conservation.
Costa Rica’s Marine and Coastal Program serves as a model for other nations, promoting the adoption of similar initiatives worldwide. This program’s success contributes to international efforts to address climate change, including initiatives like the Convention on Biological Diversity and various United Nations frameworks. This global impact on climate change is related to the later signing of the San Jose declaration between Costa Rica, Colombia, Panama and Ecuador, which established a voluntary regional cooperation mechanism between the singing parties in the Eastern Tropical Seascape (ETPS) region.
ETPS is a highly productive ocean region located along the Intertropical Convergence Zone, where warm and cool currents converge, producing a rich and diverse assemblage of marine species. The participating countries agree to safeguard these species and their habitats with the San Jose Declaration. On July 24, 2006, the Blue Moon Fund recognised Rodríguez’s efforts in promoting this declaration with the Conservation Leadership Award.
With establishing the Marine and Coastal Program, such significant international cooperation and recognition might have occurred. The program has not only benefited Costa Rica but has also influenced global marine conservation strategies, contributing to the overall fight against climate change.
Global plan to protect tropical forests that were used for the UN’s Reducing Emissions from Deforestation and Forest Degradation program (REDD)
The policy framework for the UN’s REDD program has been widely implemented across tropical countries. This initiative includes creating national strategies to reduce deforestation and forest degradation while enhancing forest carbon stocks and emphasising sustainable forest management. Over 60 countries have adopted a REDD program, each at various stages of implementation, ranging from initial readiness phases to fully operational projects. These stages involve extensive planning, capacity building, and the establishment of monitoring and verification systems to ensure effective implementation and outcomes.
In Costa Rica, implementing REDD strategies has led to a remarkable transformation of the forestry sector. The country, which once had the highest deforestation rates in Latin America during the 1970s and 80s, has almost completely reversed forest loss by the 2000s. Between 1997 and 2019, these strategies prevented the release of 200 million tons of CO2, turning the forestry sector from an emissions source to a carbon sink, with net sequestration of -4.4 million tons of CO2 annually by 2019.
Costa Rica has reaped significant economic benefits from its participation in carbon credit markets, thanks to REDD strategies. Despite challenges in accessing total potential payments, the country has received approximately 8.7% of potential payments, translating to millions in financial incentives for verified emissions reductions. These funds have supported sustainable forest management practices among local communities and landowners. The Payments for Environmental Services (PES) program, a precursor to REDD, has been instrumental in this success, paying landowners to maintain and restore forests and thereby demonstrating the power of valuing ecosystem services in driving conservation efforts.
The REDD program has played a pivotal role in strengthening local forest management and monitoring capacities in Costa Rica. This has not only contributed to long-term environmental sustainability but also ensured economic stability. By fostering a green economy, Costa Rica is effectively mitigating environmental risks and ensuring the resilience and prosperity of its economy and communities in the face of climate change. However, Carlos Manuel Rodríguez has also highlighted the challenges and shortcomings of REDD. He pointed out that the program has often been governed by individuals needing more practical experience in forest management.
According to Rodríguez, these leaders focus more on monitoring and assessment rather than addressing the underlying causes of deforestation. He criticised the inadequate compensation rates for carbon offsets, which do not match the actual cost of conservation, thereby undermining the program’s effectiveness.
Carlos Manuel Rodríguez’s leadership in the REDD global initiative has solidified his reputation as a key figure in environmental policy, enabling him to push for more comprehensive and collaborative approaches to climate change mitigation and forest conservation.
The REDD program fosters international collaboration, encouraging countries to work together to combat climate change and protect forests. It supports the global policy framework for climate change mitigation, aligning with commitments under the Paris Agreement and other international accords. By promoting sustainable forest management and reducing emissions from deforestation and forest degradation, the REDD program plays a crucial role in the global effort to address climate change.In conclusion, the widespread implementation of the REDD program across tropical countries has not only helped reduce deforestation and enhance forest carbon stocks but also provided significant economic and environmental benefits.
Carlos Manuel Rodríguez has contributed substantially to global climate policy, advocating for sustainable practices and international cooperation in the fight against climate change through his work with the REDD program. However, his insights into the program’s shortcomings underscore the need for more effective implementation strategies and fair compensation for carbon offsetting to achieve its goals truly.
IExRAIA Summer Research Program:
This article is an excerpt from a report about Carlos Manuel Rodriguez produced as part of an RAIA research program on climate leaders. For a full picture of Rodriguez’s climate leadership, read the full report. This project was fully financed by IE University’s IE School of Politics, Economics and Global Affairs.
Authors: Francisco Jeldres and Valeria Flores
Editor: Francia Morales
Project Lead: Francia Morales
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