The Environmental Services Payments Program (ESPP) constitutes a financial recognition granted by the State -through FONAFIFO -to forest and forest plantation owners as payment for the environmental services rendered by them, which directly contribute to the protection and improvement of the environment..

In the interest of achieving the well-being of small and medium producers of forest goods and services, credits offered under appropriate conditions play a very important role. Our mission is to provide support to successful projects based on low interest rates and terms that adjust to the reality of our country's forestry situation..

Hystory
FONAFIFO is developing a project aimed at reducing the greenhouse effect gas emission (COOPEAGRI)...
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Given that public funds are insufficient to guarantee the continued expansion of the country's forest cover, FONAFIFO has tried to find new sources of financing to compensate forest owners for their efforts and provide continued benefits for society ...

The Environmental Services Payments Program (ESPP) is a financial mechanism implemented by the State, through FONAFIFO, to compensate owners of forests and forest plantations for the environmental services that these provide, which directly contribute to the protectiont...

Loans, offered under appropriate conditions, play a very important role in promoting the well being of small and medium-sized producers of forest goods and services. FONAFIFO’s mission is to support successful projects offering terms, conditions and interest rates ...


 

The National Forestry Financing Fund (FONAFIFO) was legally constituted in 1996. In 1997, FONAFIFO launched the Environmental Services Payments Program (ESP) to benefit small and medium-sized landowners whose included forests or are suitable for forestry activities, with the aim of promoting the conservation and recovery of the country's forest cover.

FONAFIFO's general objective is to finance small and medium-sized producers, through loans or other mechanisms, to promote the management of forests, both intervened and natural forests, in order to encourage forest plantation and reforestation processes, the establishment of forest nurseries and agroforestry systems, the rehabilitation of deforested areas, and also to benefit from technological advances in the use and industrialization of forest resources. FONAFIFO also mobilizes funds to pay for the environmental services provided by forests, forest plantations and other activities to strengthen the development of the natural resources sector.

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FONAFIFO's history dates back to the year 1990, with the promulgation of Forest Law No. 7174 and its Regulations, together with Executive Decree No. 19886-MIRENEM. Subsequently, the National Forestry Financing Fund was created in 1991 through Rule No. 32 of Law No. 7216 of the Ordinary and Extraordinary National Budget, and later FONAFIFO was established through Article 46 of Forest Law No. 7575.

FONAFIFO is a fully decentralized body within the organizational structure of the State Forest Administration. The aforementioned Law 7575 grants it relative autonomy, instrumental legal status and the authority to engage in any type of licit non-speculative legal transaction, including the establishment of Trust Funds, to guarantee the effective administration of its patrimonial resources.

FONAFIFO is administered by a Governing Board, composed of five members (two representatives from the private sector and three from the public sector), appointed for a two-year period. To carry out its work, FONAFIFO has an Executing Unit, headed by an Executive Director, and five departments or Areas of Action: Environmental Services Area, Credit Area, Administrative Area, Legal Area and the Resource Management Area. FONAFIFO currently uses the modality of a Trust Fund to carry out its tasks and operations. FONAFIFO’s Central Offices are located in San Jose and it also has eight Regional Offices in different parts of the country.

FONAFIFO’s funding comes from the following sources: from the Ordinary National Budget, as stipulated in the Fiscal Simplification and Efficiency Law No. 8114; from forestry tax revenues; from revenues generated in accordance with Law No. 8058, with the Approval of the Loan Contract between the World Bank and the Government of Costa Rica; and from the financial contributions of the German Government, through the KfW Bank, ratified by Law No 8355. At the local level, FONAFIFO also receives resources from the water protection agreements signed with the firms Energia Global S.A., Hidroelectrica Platanar S.A. and from Environmental Services contracts signed with the National Power and Light Company (Compañia Nacional de Fuerza y Luz- CNFL) and Florida Ice & Farm.

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