This month Costa Rica became the first choice for World Bank for a Carbon Fund, allowing access to $63 million for the Payment Program for Environmental Services.
In October 2012 the 5th Carbon Fund Meeting of the Forest Carbon Partnership Facility (FCPF) made a major milestone decision and set Costa Rica to become the first country to access performance-based payments through the FCPF. This is the first time a national program is being supported by carbon funds in this global initiative of 54 countries and organizations, heralding a new phase in forest carbon finance.
Costa Rica was selected because of it innovative proposal. The proposal would result emission reductions are estimated at 29.5 million tons of CO2. Close to half of these emission reductions (12.6 million tons of CO2) would be offered to the Carbon Fund, and would require an estimated financing of $63 million (assuming a price of $5 per ton of CO2).
The Carbon Markets have struggled the past few years because of uncertainty at governmental levels for many nations around the world, but as more and more NGOs continue their efforts, both governments and big business not only have to accept the inevitability of Global Carbon Markets but are now seeing big opportunity.
The Costa Rica News (TCRN)
San Jose Costa Rica
