Download Case Study Costa Rica - Africa Adaptation Programme

ANNEX 3: CASE STUDY --COSTA RICA
Costa Rica has a long-standing background in public policies related to environmental issues, is a pioneer
in developing environmental tools, and also has been an active participant in climate change negotiations.
The country announced its intention in 2007 to become carbon neutral by 2021. The Capacity Development
for Policy Makers to Address Climate Change project therefore provided the government and UNDP with an
ideal opportunity to lay some of the groundwork in support of this goal.
The initial National Inter-Ministerial Dialogue on Climate Change, held on 6-7 May 2009 in San
Jose, engendered high-level participation and media coverage, and the workshop recommendations were
refined for used in national awareness-raising efforts. Nearly 100 participants attended from Ministries,
the Legislative branch, NGOs, academia and research institutes, embassies, and multilateral development
banks. Climate change governance and coordinated long-term planning to address climate change were
discussed during the Dialogue, along with the linkages between the UNFCCC negotiations and national
processes. Among the main recommendations from the Dialogue agreed were the need for:
 A short-, medium-, and long-term vision for addressing climate change that could be linked to the
national development plan and other planning mechanisms.
 The linkage of climate change to three national priorities: the eradication of poverty, the
promotion of sustainable development, and food security.
 Strengthened national capacities in both the public and private sectors to mainstream climate
change issues into Ministerial planning and management procedures.
 A variety of water and biodiversity measures, based upon presentations made by national experts
on these key sectors (see below).
The government selected the key sectors of water and biodiversity, from an adaptation perspective,
for the investment & financial flows (I&FF) assessment. National experts prepared issues papers that
described the importance of the sectors and anticipated challenges to implementing the I&FF
assessments:
 Biodiversity: Costa Rica represents only 0.03% of the global land area, but is home to more than
half a million species. Protected areas cover more than a quarter of its territory and government
programmes have helped Costa Rica reforest – trees now cover 51% of the country, a 10%
increase in the last decade. A hot spot of biodiversity, with eight major ecosystems, Costa Rica
identifies around 160 new species each year and annually, there are 2 million visitors to its parks.
The main impacts of climate change will be loss of species; many of which are already
endangered.
 Water: Costa Rica has abundant water resources, but more efficient water management is needed
to satisfy demands from electricity generation, agriculture, human consumption, industry, and
services. The country generates 78% of its energy with hydroelectric power. The main impact of
climate change will be decreasing water availability, while demand is rising. Flooding is also a
seasonal issue.
The national I&FF assessment seeks to answer the question: “From a developmental perspective, what needs to
be done to adapt to or mitigate climate change in the selected key sectors, and what policy framework, investment environment
and financial architecture will be required to achieve that purpose?” A national institution undertook the assessment,
reporting to an Inter-Ministerial Committee on Climate Change. Technical backstopping was provided to
the national team by ITDT, a regional centre of excellence located in Argentina, two regional experts with
backgrounds in climate change economics and forestry, and UNDP.
I&FF assessment results (using a discount rate of 0.1%)
 Water: Five sub-sectors were assessed: hydropower, human consumption, irrigation and
drainage, sanitation, and integrated water management. The main adaptation options considered
were: behavioural changes in water consumption, regulations to curb irrational use of water,
incentives to avoid pollution and encourage recycling of water, and educational campaigns
among schools and municipalities to prevent water pollution. The cost of implementing these
measures was estimated at US$ 2.1 billion from 2010-30, with most investments needed in the
hydropower sub-sector.
 Biodiversity: The analysis focused on: conservation of terrestrial ecosystems, goods and services
from terrestrial ecosystems, coastal marine ecosystems, inland aquatic ecosystems, knowledge
generation and forest fires. The main adaptation options considered were: acquiring land for
conservation, increasing the payment for environmental services, and research on phenomena
that cause species extinction. The cost of implementing these measures was estimated at US$ 3.7
CASE STUDY: COSTA RICA (cont.)
I&FF assessment results
 Water: Five sub-sectors were assessed: hydropower, human consumption, irrigation and
drainage, sanitation, and integrated water management. The main adaptation options considered
were: behavioural changes in water consumption, regulations to curb irrational use of water,
incentives to avoid pollution and encourage recycling of water, and educational campaigns
among schools and municipalities to prevent water pollution. The cost of implementing these
measures was estimated at US$ 2.1 billion from 2010-30, with most investments needed in the
hydropower sub-sector.
 Biodiversity: The analysis focused on: conservation of terrestrial ecosystems, goods and services
from terrestrial ecosystems, coastal marine ecosystems, inland aquatic ecosystems, knowledge
generation and forest fires. The main adaptation options considered were: acquiring land for
conservation, increasing the payment for environmental services, and research on phenomena
that cause species extinction. The cost of implementing these measures was estimated at US$ 3.7
billion1 from 2010-30, with most investments needed for the conservation of terrestrial
ecosystems.
The results of the I&FF assessment were presented at the concluding National Inter-Ministerial
Dialogue on Climate Change, held on 21-22 April 2010 in San Jose. Twenty media outlets covered
the Dialogue, including news agencies, newspapers, radio and TV. It was noted that although the
amounts identified for climate change adaptation needs in the water and biodiversity sectors may appear
high when considered against the funding levels currently being discussed in the UNFCCC talks, they
were low in comparison to the actual investment currently being undertaken in each sector. The Dialogue
also included panel discussions on topics including inter-ministerial coordination, climate financing, and
the role of international organizations.
Next steps
 Costa Rica also participated in the UNFCCC’s National Economic, Environment and
Development Study (NEEDS) for Climate Change Project, where it estimated that US$ 7.8
billion would be required for climate change mitigation efforts in the LULUCF and energy
sectors. The government now plans to undertake I&FF assessments for the agriculture and
tourism sectors (for adaptation) in order to have a full picture of the costs of addressing climate
change.
 Costa Rica’s National Climate Change Strategy is the central policy instrument and was integrated
into the National Development Plan for 2006-10. UNDP is supporting the government to assess
the approach of a national multi-donor trust fund to be used as the underlying financial
architecture for future climate change activities.
 More sectors to be assessed: One of the most positives outcomes of the project has been the
request of the Minister of Environment of Costa Rica to UNDP to carry out I&FF assessments
in 3 additional sectors: Agriculture, Tourism and Transport.
For more detailed reports of these activities, go to: http://www.undpcc.org/content/costa_rica-en.aspx