Reversing deforestation in Costa Rica

Losing 1% Of Our Forest Each Year

At a shocking rate of approximately 1% per year, deforestation in Costa Rica was very rapid in the middle of the 20th Century.

From 75% forest coverage in the 1940’s, we went to less than 30% in 1989. The main cause for it was that forested areas had to make room for agriculture and livestock. This went so fast that Costa Rica had one of the highest deforestation rates in the world. If we had continued at this pace, there wouldn’t be any forest left by 2015.

When I took upon my role as the country’s first minister of Environment and Energy in 1986, I knew we had to act fast and effectively to save our forests. Luckily, we were able to do it! Today, Costa Rica’s forest covers 58% of the land area.

Deforestation in full swing in 1973

Driven by industrial wood demand and expanding agriculture, the forest coverage plummeted from 75% to 40% between 1940 and 1977. A 1973 documentary by the Ministry of Culture highlighted this crisis and the slow response of state institutions.

How we went back to 58% forest coverage

So how was Costa Rica able to reverse deforestation? By the time I started my position as the first minister of MINAE in 1986, Costa Rica had already put in efforts to reverse the rampant deforestation. A range of policies, including tax incentives for reforestation and soft loans, had failed (read here why).

With these lessons learned, it was time to implement a number of critical reforms. Key initiatives were:

Shifting our priority from reforestation to preserving the existing forests
Providing economic value to the forest with incentives for forest protection
Implementing strict regulations to prohibit land-use change in forested areas
Collaborating with small landowners and peasant organizations to amplify our impact
Expanding the system of public and private reserves to safeguard critical ecosystems

With all of these efforts combined, we were able to not only slow down deforestation, but reverse it altogether.

The policies we implemented set the basis for what later became known as Payment for Ecosystem Services (PES), which has received worldwide recognition and has been adopted by many other countries.

How Costa Rica financed reforestation

To have a shot at overcoming our enormous challenge of reversing deforestation, I knew we needed new and creative ways to finance our ambitions. One of our most groundbreaking initiatives was the implementation of debt-swaps for conservation.

The original idea to try to use debt for environmental protection came from my friend Dr. Tom Lovejoy, the Vice-President of WWF, but it had not been tried, except for an initial $100.000 deal in Bolivia orchestrated by Conservation International. Under my leadership, Costa Rica was the first country to design and implement a real program.

I was able to convince The Netherlands to become the first country to jump on board. Their support was crucial to kickstart our transition to our new system of forest incentives. Later on, our program was funded entirely by international grants and loans, before the Costa Rican government was able to primarily fund it through the implementation of a 3.5% fuel tax. Read more about the debt-for-nature swaps.

Inspiring other countries & generations

Our relentless efforts to reverse deforestation have not gone unnoticed. In 2019, the United Nations honored Costa Rica as Champions of the Earth and in 2021, we were awarded the prestigious Earthshot Prize for our pioneering policies that have led to the revival of the forest.

I truly hope that Costa Rica’s journey to reverse deforestation serves as a powerful example of what is possible when vision, leadership, and collective action converge. By prioritizing environmental stewardship and embracing innovative solutions, we have transformed our nation into a beacon of hope for society worldwide. It shows that it is possible to build a more sustainable and resilient future for generations to come.