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Payments for environmental services in Costa Rica: from Rio to Rio and beyond

Costa Rica has shown how a small developing country can grab the
bull of environmental degradation by the horns, and reverse one of the highest deforestation rates in Latin America to become the poster child of environment success. Key to its achievement has been the country’s payments for environmental services (PES) programme, which began in 1997 and which many countries are now looking to learn from, especially as water markets and schemes to reward forest conservation and reduced deforestation (REDD+) grow. Within Costa Rica too, there is a need to first reflect on how the contexts for, and challenges facing, PES have changed; and continue building a robust programme that can ensure the coming
decade is as successful as the past one.

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Payments for environmental services (also known as payments for ecosystem services or PES), are payments to farmers or landowners who have agreed to take certain actions to manage their land or watersheds to provide an ecological service. As the payments provide incentives to land owners and managers, PES is a market-based mechanism, similar to subsidies and taxes, to encourage the conservation of natural resources.

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Markets and payments for environmental services