FONDO NACIONAL DE FINANCIAMIENTO FORESTAL

Since public funds are insufficient to ensure the continued growth of forest cover, FONAFIFO has tried to find new financing sources to compensate forest owners for their efforts and secure the benefit for all of us. This gave rise to the idea of the Environmental Services Certificate (ESC), a financial instrument that preserves the existing forests and regenerates new ecosystems and guarantees environmental services to an increasing population.

Other Thematic Axes to consider

CLIMATE CHANGE

Environmental variations apt to be measurable through time and resulting from a steady increase in earth surface average temperature. The main scientifically-proven cause of said increase is the massive use of some highly harmful natural or industrial gases identified as accelerating contributors of climate change, known as Greenhouse Gases (GHG).

GREENHOUSE GASES (GHG)

Greenhouse Gases are gaseous emissions enhancing the greenhouse effect and largely creating alterations with negative impacts on the planet’s atmosphere. One of the main activities contributing to emissions is the constant use of fossil fuels, such as oil, gas, or coal, thus making air, land, or water transportation one of the most emission-intensive operations. Additionally, decay processes of either natural or man-made waste, coupled with likely impacts from land use changes, are other direct impact factors.

OFFSETTING EMISSIONS

All of us inhabiting the planet should be aware of the negative environmental effects humankind is day-to-day contributing as a result of our activities or actions. This is why we need to assume our share of responsibility, which forces us to seek feasible, safe, and measurable mechanisms that help minimize or significantly offset some sort of air emissions. One of these mechanisms is based on forestry project development.

The verifications of Environmental Services Payments, in relation to funds derived from the Environmental Services Certificate (ESC), are made by the Tropical Agricultural Research and Higher Education Center (CATIE), the Junta National Forestal Campesina (JUNAFORCA ), as well as through internal and external audits, and also by the General Comptroller’s Office of the Republic. All resources received by FONAFIFO from the sale of ESC are managed through a Trust Fund created in the Banco Nacional de Costa Rica.

Several companies have believed in this system, joining to protect the environment, by investing in Environmental Services Certificate. The companies and individuals who have invested in ESCs are the following: Reserva Conchal, S.A., Azucarera El Viejo, S.A., Costeña, S.A., Exporpack, S.A., Milenio, Life Gate, Grupo Olefinas, Eng. Edgar Ortiz, ASOFIFO, Hidroeléctrica Tuis, S.A., Holcim Costa Rica, Melones de la Península, and Agrícola Tayutic, S.A.

Both individuals and companies may invest in Environmental Services Certificate for the protection of one or more regions determined according to their interests. The amount to be invested will depend on the number of hectares he/she/it is willing to protect. The minimum area to invest for a ESC is one hectare. At this moment, the average value of ESC per hectare is $57 per year and contracts are made for five-year terms.

With the issuance of ESC-Guanacaste, an attempt is made to preserve or regenerate seven thousand hectares of forest or land in order to protect the superficial and underground water resources of Nicoya, Santa Cruz, Filadelfia, Carrillo and Liberia Provinces.

The macro issuance for Guanacaste will total $1.995 million.

FONAFIFO has developed a second new way to raise economic resources from the private sector, institutions and friendly governments to protect and reforest the land, mainly in watersheds where important water resources are generated for human consumption and hydroelectric energy production, as well as for the protection of regions wherein large variety of biodiversity is present.

INVEST IN FOREST