Costa Rica just scored a big win for its farmers and exporters. The European Union classified the country as low-risk for deforestation under its Deforestation-Free Regulation (EUDR), set to take effect December 30, 2025. This means easier access to EU markets for Costa Rican coffee, cocoa, timber, and other key exports.
The EUDR targets seven commodities—coffee, oil palm, rubber, cocoa, timber, beef, and soybeans—requiring proof they come from land not deforested after December 31, 2020. Low-risk countries like Costa Rica face simpler due diligence, cutting paperwork and costs for producers. This is a game-changer for a nation where exports like coffee and timber are economic staples.
Manuel Tovar, Costa Rica’s Minister of Foreign Trade, didn’t hide his excitement. “We’ve been working hard with EU authorities to make sure this regulation doesn’t hurt our exports,” he said. “This classification shows our commitment to the environment and keeps our markets open.”
So, how did Costa Rica pull this off? It’s a story of smart policies and hard work. Back in the 1980s, the country’s forests were in trouble, with only 25% of land covered due to logging and farming. A deforestation ban, eco-tourism investments, and the Payments for Environmental Services (PES) program, launched in the 1990s, turned things around. The PES pays farmers to protect forests, helping boost forest cover to nearly 60% today. That’s a rare feat—Costa Rica now gains more forest than it loses.
Franz Tattenbach, Minister of Environment and Energy, called the EU’s decision a proud moment. “This proves our Sustainable Agro-landscapes initiative works,” he said. “We’re the only Central American country with this low-risk status and one of just a few in Latin America, alongside Chile and Uruguay.”
The EU’s criteria for low-risk status look at deforestation rates, agricultural expansion, and commodity production. Costa Rica’s low deforestation and sustainable farming practices checked all the boxes. Unlike high-risk countries like Belarus or Myanmar, Costa Rica’s systems, like farm mapping for traceability, make compliance straightforward.
In 2023, Costa Rica set up the Green Pact Technical Roundtable, bringing together the Ministry of Agriculture and Livestock (MAG), the Ministry of Environment and Energy (MINAE), and the Ministry of Foreign Trade (COMEX), plus farmers, businesses, and academics. This group gathered legal, technical, and scientific data to prove to the EU that Costa Rica takes deforestation seriously. Their efforts paid off, giving exporters a competitive edge.
For Costa Rican farmers, this means less hassle selling to the EU, which buys a huge chunk of the world’s coffee and cocoa. Lower compliance costs could make their products more attractive compared to those from countries with stricter checks. It’s not just about trade—Costa Rica’s environmental push, including 98% renewable energy, ties into its goal of a zero-carbon economy.
Still, it’s not all smooth sailing. Globally, small farmers in places like Africa and Southeast Asia are struggling with EUDR’s traceability rules, which require geolocation data for every shipment. Costa Rica’s head start with systems like farm mapping gives it an advantage, but it shows how tough these rules can be for less-prepared countries.
Costa Rica’s low-risk status isn’t just a pat on the back—it’s a practical win that keeps its exports flowing and forests growing. As the EUDR rolls out, ourcountry’s blend of policy, teamwork, and environmental grit sets a standard others might follow.
