Costa Rica will be Carbon Neutral by 2021 says Oscar Arias

Sep 23, 2008

Source: www.journalcr.com

By Jorge Segura*

Recently our President Doctor Oscar Arias announced, and declared as a national objective, that Costa Rica will become the first carbon neutral country by the year 2021, the bicentennial anniversary of our independence. In order to achieve this goal the country will take the necessary measures and will make the efforts required to cut its net greenhouse gas emissions to zero before that year.

Will it be possible to achieve such a bold objective?, Is this a positive event for business?. I believe the goal will be achieved and it will be great for our industry. I have witnessed the transformation of our country from a coffee/banana republic to one of the hottest ecotourism spots in the world. This has been possible because a couple of decades ago the government established the protection of the environment as a national priority, and developed a tourist industry based on that effort. Today we all enjoy the results of that decision, but 20 years ago nobody gave a dime for a wetland.

In order to understand the magnitude of the task ahead, and imagine the kind of measures needed, you must know that while Costa Rica believes it will fully offset its carbon emissions by the year 2021, Norway expects to achieve the same goal by the year 2050. Regardless of what you may think about the greenhouse effect, climate change is probably the major challenge facing humanity today; and being that Costa Rica has been fighting for the environment for many years, it was only natural that our country would take a challenge of this magnitude for the benefit of the environment, and of our citizens.

I am not the only one who thinks we will achieve this goal; a brief search on the Internet will show you why the “smart-money” is on Costa Rica. In fact, we have several advantages that will allow us to achieve this objective: 1) Costa Rican citizens are becoming more environmentally conscious. 2) Our target market as a tourist and investment destination is also more environmentally conscious. 3) 51% of the country is already covert by trees, a 10% increased over the last decade. 4) We produce roughly 1.5 tonnes of carbon per person, compared to close to 10 tonnes in Norway and other developed countries. 5) We generate over 80 percent of our energy through renewable sources, such as water and wind, etc.
Additionally, the authorities are currently planning or implementing measures to: 1) Increase the amount of reforested and protected areas, 2) Increase the generation of hydro and geothermic electricity, 3) Incentive the used of alternative means of transportation, etc.

What do all these mean for our industry?. Well, we have the opportunity to be unique in the world by becoming the first “carbon-neutral” tourist destination, and that means we have an opportunity that very few investors and developers, around the world, may aspire to have.

I am not an environmentalist, I am a real estate developer, and in case you are confused this is a business column. I am just someone who loves this country, its culture, and the people who share it with us. I also like to think that I am a smart businessman and a good strategist, and as such, I believe the trend towards the protection of the environment is not a threat but an opportunity. Just eight years ago, I told some environmentalists that they would ultimately succeed in their efforts, but only when people realize that protecting the environment could also put food on their table. Well, the time has come in which protecting the environment is becoming a good and profitable business…at least in Costa Rica.  

It is a matter of numbers, and business tendencies. An overwhelming percentage of those who visit or invest in our country chose it because of its natural beauty, and our rich biodiversity. Costa Rica has become a hot ecotourism destination, which is the fundamental reason behind the boom of this industry. We must protect the environment not only for a social cause, but also because the wonderful natural beauty of the country (wetlands, mountains, trees, rivers, beaches, etc.) allows us to put the food on our table, and generate wealth.

Nowadays, environmental protection is not just a requirement for construction or operation permits, it is also a fundamental part of the value generation process of whatever product/service you plan to sell, in the local tourist and real estate development industry.   In order to implement this strategy you do not need to believe that if you cut a tree, it will bleed; you only need to be aware that cutting trees unnecessarily (even if you have a permit) will delay us from the goal of becoming the first “carbon-neutral” tourist destination in the world.

*MBA Fin. Jorge Segura
President-DCL Property Developers
info@dclconsultores.net