Costa Rica Water-Based Ecosystem Services Markets

The Costa Rican payment for ecosystem services program leverages public-private partnerships to protect and restore forest land. In most instances, private water users contribute one-quarter of the total amount paid to landowners with the other three-quarters coming from the Costa Rican National Forestry Fund that acts as an intermediary between the buyers and sellers. The Costa Rican Payment for Ecosystem Services (PSA) program has been in operation for nearly a decade and is primarily motivated by forest conservation efforts. Indeed, the Forestry Law of 1996, on which the national program for the payment of ecosystem services is based, defines these services as “those offered by the forests and forest plantations for the protection and enhancement of the environment.” Through the PSA program, FONAFIFO recognize 4 major types of ecosystem services that are offered by the country ‘ s tropical forests: greenhouse gas mitigation, watershed protection, biodiversity conservation, and preservation of scenic beauty. These four services create a single bundle which reflects the aggregate ecological value of a given forested area.

News notes are courtesy of Southern Forests Network News Notes
www.southernsustainableforests.org