Program of Payments for Forest Environmental Services in Costa Rica Edgar Ortiz Malavasi Instituto Tecnologico de Costa Rica Symposium: "Direct Payments as an Alternative Approach to Conservation Investment"

STOCKS AND FLOWS OF MATTER AND ENERGY ARE AFFECTED BY LAND USE TYPE AND THE PRODUCTION SYSTEM ENVIRONMENTAL SERVICES

A DEFINITION Regulatory functions (upon stocks and flows of matter and energy) of the natural ecosystems and some agro-systems that help to maintain or improve the environment and people’s life quality

Program of Payments for Environmental Services From Forest Ecosystems in Costa Rica.

PAYMENT FOR ENVIRONMENTAL SERVICES IN COSTA RICA IT WAS DESIGNED AS A MECHANISM TO CONTROL AND REVERSE DEFORESTATION THE STRATEGY IS TO INCREASE INCOMES FROM FOREST PRODUCTION ACTIVITIES TO MAKE THEM COMPETITIVE WITH ALTERNATIVE LAND USES

A SYSTEM OF PAYMENTS FOR ENVIRONMENTAL SERVICES 1. Adapted from Castro, 2001 A mechanism, based upon a legal, institutional, technical, and operational framework, to pay to land owners for the environmental services which their lands produce when they adopt land uses and production systems which are environmentally friendly DEFINITION

SYSTEM COMPONENTS MODALITIES (land uses and production systems) TOTAL PAYMENT AMOUNT AND DISTRIBUTION PRIORITY AREAS LEGAL FRAMEWORK (contracts, enforcement, penalties) INSTITUTIONAL FRAMEWORK FUNDING AND FINANCIAL SYSTEM MONITORING SYSTEM (control and evaluation) OPERATIONAL MANUAL and SPECIAL CONTRACTS

LEGAL FRAMEWORK FOREST LAW 7575 (1996) It recognizes four environmental services provided by forest ecosystems: (i) mitigation of GHG emissions (ii) hydrological services (iii) biodiversity conservation (iv) provision of scenic beauty for recreation and ecotourism. It establishes that the program will be financed through a tax on fossil fuel sales

MODALITIES-TOTAL PAYMENT- DISTRIBUTION. YEAR 2001

Types of Contracts

TOTAL AREA AND NUMBER OF CONTRACTS BY MODALITY AND YEAR

FONAFIFO LAND OWNERS REFORESTATION FOREST MANAGEMENT FOREST PROTECTION GASOLINE TAX MINISTRY OF FINANCE FINANCIAL INSTRUMENT IN BNCR SINAC COSTA RICANS & THE GLOBAL COMMUNITY ENV. SERVICES PAYMENTS IDENTIFICATION OF PRIORITY AREAS CONTRACT MONITORING VOLUNTARY AGREEMENTS

FINANCING FROM NATIONAL BUDGET (in Millions of colones) 1 US$= 360 colones

SOURCES OF FUNDING VOLUNTARY AGREEMENTS

MONITORING SYSTEM INTEGRATED SYSTEM OF PROJECT ADMINISTRATION (SIAP) GEOGRAPHIC INFORMATION SYSTEM FIELD INDEPENDENT AUDITS FOREST COVER MAPS

PAYMENT FOR ENVIRONMENTAL SERVICES IF YOU BENEFIT FROM THEM AND PAYMENT TO THOSE LAND OWNERS WHOSE NATURAL CAPITAL PRODUCES THE SERVICES NEW PRINCIPLE DEVELOPMENT OF MARKETS FOR ENVIRONMENTAL SERVICES

Fuente: Univ. Austral. 2001

WEAKNESS OF THE COSTA RICAN SYSTEM Environmental groups are opposed to include sustainable forest management as a modality in the system Field control and evaluation need to be improved There are many arguments about if forest ecosystems really provide hydrological services A contractual system is difficult to implement. It demands trained people to manage high amounts of data, together with significant field work and a good monitoring system. Identification of priority areas need to be improved Administrative and legal requirements are complicated for small owners