The World Bank and Costa Rica signed an agreement for $60 million to reward local communities that reduce carbon emissions caused by deforestation, the two parties reported on Friday.
The financing is part of the mechanism for reducing emissions from deforestation and forest degradation (REDD+), contemplated in the UN Convention on Climate Change, and will grant $60 million offset 12 million tons of carbon dioxide (CO2) until 2025.
The non-reimbursable funds will benefit key populations such as indigenous territories and organized groups of underserved populations who preserve the forest, even when they don’t own the land they’re protecting.
“This is intended to increase the participation of key players in reducing CO2 emissions,” the Environment Ministry said in a statement.
“Costa Rica has a long tradition of pairing environmental protection with the creation of green jobs,” commented the Environment Minister, Andrea Meza, about the agreement with the World Bank.
For his part, President Carlos Alvarado stressed that the agreement will contribute to the goals of the decarbonization plan launched by her government, which aims to suppress the use of fossil fuels by 2050.
The funds will be disbursed in three tracts with the verification of the capture of 12 million tons of CO2 in 2021, 2022 and 2025.
“Costa Rica is committed to sustainably managing its abundant natural assets, and this agreement will generate significant green support after the current pandemic,” said Oscar Ovalle, World Bank representative in Costa Rica and El Salvador.