The pilot program for Deforestation-Free Coffee (CLDD) in Costa Rica marked a milestone in the country’s coffee sector by addressing sustainability from the perspective of deforestation reduction.
This initiative responds to the European Union (EU) regulation 2023/1115, which aims to restrict the import of products related to deforestation, and is set against a global context where sustainable trade is becoming increasingly relevant.
Driven by the REDD+ Results-Based Payments (REDD+ PBR) Project of the United Nations Development Programme (UNDP), along with the Costa Rican Coffee Institute (ICAFE) and the CoopeTarrazú cooperative, its goal was to differentiate Costa Rican coffee in the most demanding international markets, particularly Europe, the second largest importer of Costa Rican coffee.
Focus on sustainability
Given the responsible agricultural policies and the focus on sustainability that have characterized Costa Rica, the European regulations represented a key opportunity for the country to establish itself as a producer of high-quality coffee committed to environmental conservation.
The implementation of a deforestation-free coffee model allows producers to position themselves favorably in an increasingly competitive market that is sensitive to the environmental impacts of agricultural production. Differentiation through sustainability gives producers an advantage in markets, such as the European one, that increasingly value products with ethical and sustainable labels.
From an agro-economic perspective, small producers, who represent approximately 85% of the coffee sector in Costa Rica, could face difficulties in meeting the technical and financial standards required by these new regulations. However, one of the factors that has allowed Costa Rica to adapt to these market demands is its strong institutional framework, led by ICAFE.
This institute has been fundamental in coordinating the different actors in the sector, from small producers to cooperatives and exporting companies. Moreover, the country’s previous experience in complying with certification standards, such as Rainforest Alliance and Fair Trade, has facilitated the rapid adoption of the new requirements imposed by European regulations.
Another key aspect has been the use of advanced technologies for coffee traceability, such as the CR CAFÉ tool from ICAFE and the Land Use and Land Cover Change Monitoring System in Productive Landscapes (MOCUPP), under which it was determined with over 95% reliability that for the period between 2020 and 2023 (the analysis period for the pilot), there was no deforestation associated with the properties under study.
With the pilot, work was developed alongside 69 producers and 117 farms in the Los Santos region, one of the main coffee-growing areas in the country. The first export, carried out on March 14, 2024, included 275 quintals of coffee (18,975 Kg), sent to Trieste, Italy. However, a production of approximately 6,160 quintals of coffee was achieved under this determination.
By November 2024, a total of 22,467 quintals of deforestation-free coffee have already been declared, representing more than 65,000 productive hectares of coffee.
The declaration of deforestation-free allows Costa Rica to differentiate its coffee in high-value markets, where the demand for sustainable products is on the rise. This opens the door for Costa Rican producers to gain priority and better prices for their coffee.
Key challenges
As initiatives associated with deforestation-free products continue to expand, Costa Rica faces several key challenges to establish itself as a leader in sustainable production. First of all, it will be necessary to ensure that small producers have access to financing and technical assistance to meet the required technological and regulatory standards. This includes the use of geolocation technologies and traceability systems.
Additionally, the country must address inequalities in production chains, ensuring that the benefits of the transition towards sustainability are distributed equitably. Institutional support will be crucial to ensure that all producers, regardless of their size, can adapt to this new deforestation-free production paradigm.
While coffee has been the main product to benefit from the sustainability approach, other sectors—such as cocoa and timber—have great potential to follow the same path.
In the case of cocoa, the growing demand for chocolate in international markets represents an opportunity for Costa Rican producers to position themselves in a high-value niche. However, just like with coffee, it will be necessary to invest in infrastructure, training, and traceability to meet the sustainability requirements demanded by consumers. Additionally, the timber sector faces challenges related to the control of illegal deforestation and the implementation of sustainability standards.
Despite the challenges, there is significant potential for Costa Rica to apply an approach similar to that of the CLDD in these sectors, as long as the technological and financial barriers that hinder the adoption of sustainable practices are addressed.
The initiative not only responds to the new European regulations but also represents an opportunity to strengthen the competitiveness of Costa Rican coffee in international markets and to contribute from agriculture to the fight against deforestation and climate change.
Costa Rica, with its strong agricultural legacy and commitment to sustainability, positions itself as a leader in this market transformation and must address the agro-economic challenges this represents with intelligence and fairness.
