Costa Rica and the Market for Carbon Emission Reduction Credits

Topics: Kyoto Protocol, Costa Rica, Emissions trading Pages: 1 (649 words) Published: October 27, 2014

From: Deborah Dzialoschinsky
To: Government of Costa Rica
Subject: Carbon Credits
Date: September 15th 2014
1. During the 1980’s Costa Rica exported coffee, banana and cattle and because they protected their farmers by having high tariffs they had a slow economic growth. By 1988 the IMF loaned money to helped them grow, making the country open their economy to foreign investments. This fact transformed Costa Rica and tourists started to show, being attracted by beautiful beaches and tropical forests. Over 10 years after, tourism was overtaken by electronics (Intel opened a computer chip plant) and this made Costa Rica rethink about preserving their forest and wildlife before it was all gone and chopped down. Considering the scenario of which country was, Elizabeth Odio should decide to sell the Carbon Credits at that moment. Costa Rica needed the money to improve their wildlife (Wildlife Conservations Areas program – WCA) and by doing so, they would not only give tourism strength to grow and make their economy constantly move, but they will also be able to collect the value of their biodiversity that can be used for medicine, food and cosmetics. The WCA national network would be a long term benefit and it would also create new jobs and help rural residents by being a new source of income. At the same time, the new government should realize that other countries like Brazil and Bolivia are also investing on reforestation carbon credits and because of that they have competitors now (industrialized countries have more options of whom to buy their credits from and are looking for the cheapest one). If the Costa Rican government decides to wait even longer to sell their credits, they would be risking themselves in an unnecessary way and could loose all of the probable money that would get into their economy by this trading (in the short or long term). The more they wait; more competitors will be on the market, given the context of the Kyoto protocol. The only...
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