There a lesson to learn and a model to follow from Republic of Costa Rica – a central American country at the intersection of two continents and two oceans – in how to manage environment while pushing for economic growth.
It is because if there is one nation which has exhibited through its policies and actions that environmental protection and economic growth can work together, it is Costa Rica. It treats nature as a service provider and has put in practice the notion that anyone who uses nature must pay for it through what is called “payment for environmental services.” This means that the country has put in place a system that accounts for economic activities that impact environment. The cost of polluting a river or degrading soil or depleting fish stock gets added to electricity bill and products as cost for services by nature. It also, at the same time, pays those owners who keep forests intact and rivers clean and imposed carbon tax to pay for these environmental protection services. Accordingly, polluters, carbon emitters pay tax which goes to a national forest fund to pay tribal communities for protecting the forests around them. Then there is water tax to be paid by water users that goes to villagers to keep rivers pristine. This initiative has become a major source of income for poor people as well as has reversed deforestation. The nation has twice the amount of forest it had 20 years ago.
The country which enjoys bounty of biodiversity, flora and fauna, and dependent on tourism and agriculture began this unique environment-economic growth partnership way back in 1990 – much before Kyoto Protocol and the world became wary of climate change. It did what no other country has still done: one ministry to oversee water, energy, mines and environment. It took the long-term view by investing heavily in renewable energy which is costly in the short-run but cheaper in the long-run. A few years of sacrifice would reap lifetime benefits to consumers and environment. Today, Costa Rica gets 95 percent of its energy needs from hydroelectric, wind and geothermal sources. It discovered its own oil some years back but banned drilling! Can you imagine India, for that matter any other country banning oil drilling?
In terms of the Human Development Index, Cost Rica is among top Latin American countries and ranked 54 in the world. This good ranking suggests that the economic development-environment partnership is working well. It has also announced plans to become the first carbon neutral country by 2021.
As we debate climate change and global warming at world summit without any consensus emerging from them while we continue to plunder natural resources, Republic of Costa Rica has quietly shown the way to the world, largely unknown to many and hardly recognized or exemplified at world forums. One may argue that it is a small nation with population of only around 5 million and thus it was relatively easier for it to implement such policies. But one must recognize that at least they have made a beginning and given the world a model which can be modified, worked upon to suit individual nation’s realities.
It is because if there is one nation which has exhibited through its policies and actions that environmental protection and economic growth can work together, it is Costa Rica. It treats nature as a service provider and has put in practice the notion that anyone who uses nature must pay for it through what is called “payment for environmental services.” This means that the country has put in place a system that accounts for economic activities that impact environment. The cost of polluting a river or degrading soil or depleting fish stock gets added to electricity bill and products as cost for services by nature. It also, at the same time, pays those owners who keep forests intact and rivers clean and imposed carbon tax to pay for these environmental protection services. Accordingly, polluters, carbon emitters pay tax which goes to a national forest fund to pay tribal communities for protecting the forests around them. Then there is water tax to be paid by water users that goes to villagers to keep rivers pristine. This initiative has become a major source of income for poor people as well as has reversed deforestation. The nation has twice the amount of forest it had 20 years ago.
The country which enjoys bounty of biodiversity, flora and fauna, and dependent on tourism and agriculture began this unique environment-economic growth partnership way back in 1990 – much before Kyoto Protocol and the world became wary of climate change. It did what no other country has still done: one ministry to oversee water, energy, mines and environment. It took the long-term view by investing heavily in renewable energy which is costly in the short-run but cheaper in the long-run. A few years of sacrifice would reap lifetime benefits to consumers and environment. Today, Costa Rica gets 95 percent of its energy needs from hydroelectric, wind and geothermal sources. It discovered its own oil some years back but banned drilling! Can you imagine India, for that matter any other country banning oil drilling?
In terms of the Human Development Index, Cost Rica is among top Latin American countries and ranked 54 in the world. This good ranking suggests that the economic development-environment partnership is working well. It has also announced plans to become the first carbon neutral country by 2021.
As we debate climate change and global warming at world summit without any consensus emerging from them while we continue to plunder natural resources, Republic of Costa Rica has quietly shown the way to the world, largely unknown to many and hardly recognized or exemplified at world forums. One may argue that it is a small nation with population of only around 5 million and thus it was relatively easier for it to implement such policies. But one must recognize that at least they have made a beginning and given the world a model which can be modified, worked upon to suit individual nation’s realities.
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