NEW GENERATION OF PSA
Financial Goal: USD $ 50 M
Gender marker: 3
What is it?
Costa Rica has been a pioneer in the development of a successful Payment for Environmental Services scheme, currently linked to the revenue from the tax on fossil fuels and which has been active for decades.
This financial solution seeks to propose and implement the new generation of Payment for Ecosystem Services, which allows strengthening financial sustainability in a decarbonization scenario and also expanding the scope of the current payment scheme. Thus, the New Generation of PES has the ambition to transcend the strictly forestry approach that prevails today, towards an ecosystem services approach and not depend on funds directly linked to the generation of Greenhouse Gas (GHG) emissions
Objective:
Design and implement the new generation of the Payment Program for Ecosystem Services, in order to internalize the value of ecosystem services through economic retribution to those who maintain the ecosystem through sustainable activities and identify the source (s) ) of funds that would gradually replace the revenue from the fossil fuel tax that is intended to be reduced in Costa Rica’s carbon neutrality goal by 2030.
Strategic partners:
FONAFIFO, SINAC
Financial mechanism:
- Natural Capital Trust
- Natural Capital Clearing Bank
Financial results according to BIOFIN methodology:
– Avoid future expenses
– Realign expenses
Contribution to the SDGs:
6, 13, 14, 15
Advances:
1. Economic valuation of natural capital in Costa Rica delivered in support of the next generation of PES schemes.
2. Funding mobilization goal achieved. USD 54M mobilized by the UNDP CO from the GCF, approved on November 7, 2020. BIOFIN supported specific inputs.
3. Development of the conceptual model of the new generation of PSA, expanding sources of financing
More information:
Visit the Documents section for more information on this financial solution.
