carbon tax | Innovations for Successful Societies

In this interview, Franz Tattenbach shares his experiences as Executive Director of FUNDECOR (Foundation for the Protection of the Central Volcanic Mountain Chain) regarding forestry management and environmental services. He describes how FUNDECOR negotiated with the conservation community to pass the 1996 Forestry Law that allowed environmental service payments (PES) and explains how these reforms were implemented. He then evaluates the successes and impacts of the PES program before going on to describe FUNDECOR’s activities and roles in the conservation community since the 1996 law.

Other Key Terms: Cordillera, FUNDECOR (Foundation for the Protection of the Central Volcanic Mountain Chain)

Transcript

D7_FT_BC_Tattenbach_FINAL.pdf

D7_FT_BC_Tattenbach_FINAL.txt

Profile

At the time of this interview, Franz Tattenbach José was the US Agency for International Development Regional Climate Change Program’s Chief of Party and a Distinguished Fellow of the International Institute for Sustainable Development (IISD). Previously, he served as IISD’s President and CEO for two years and FUNDECOR’s Executive Director for seventeen, where he worked to reverse deforestation and establish sustainable forest management. He holds a Bachelor of Science in Agricultural Economics, a master’s degree in Regional Science and Spatial Economics, and a doctorate in Economic Development and Peace Science from Cornell University.

René Castro

Read more about René Castro

Ref Batch

D

Focus Area(s)

Natural Resources

Ref Batch Number

12

Critical Tasks

Conserving forests

Country of Reform

Costa Rica

Interviewers

Blair Cameron

Name

René Castro

Interviewee's Position

Minister of Natural Resources, Energy, and Mines from 1994-1998 & Minister of Environment and Energy from 2011-2014

Language

English

Town/City

San Jose

Country

Costa Rica

Date of Interview

Tue, 12/16/2014 - 12:00 pm

Reform Profile

No

Keywords

Abstract

In this interview, Dr. René Castro explains the inception and implementation of the Payment for Environmental Services (PES) program during his tenure as Minister of Natural Resources, Energy and Mines from 1994 to 1998. He describes how disputes regarding the best practices for cutting down deforestation resulted in the legal reforms, which helped propel the need for the PES. He discusses the role of members of the opposition party and the president in these reforms, including the passage of a carbon tax. Furthermore, he notes the organizational challenges of transitioning to multiple new agencies, hiring and training staff for these agencies, and balancing power among them. Finally, he reviews the program’s successes and failures and provides his advice to other developing countries pursuing similar programs of forestry reforms.

Additional Key Terms: national parks, Ministry of Natural Resources, Energy and Mines, National Forestry Funding Fund (FONAFIFO), Costa Rican Petroleum Company (RECOPE)

Transcript

D12 FT BC Rene Castro_Final2.pdf

D12 FT BC Rene Castro_Final2.txt

Profile

At the time of this interview, Dr. René Castro was the former Costa Rican Minister of Natural Resources, Energy, and Mines from 1994 to 1998. Castro received his undergraduate degree in Civil Engineering from the University of Costa Rica, and both a master’s degree in Public Administration and a doctoral degree in Design from Harvard University. In addition to his tenure as Minister of Natural Resources, Energy and Mines, Castro served as Vice Minister of Interior from 1984 to 1986 and the Head of Transportation Division of the Ministry of Transportation and Vice Minister of Interior from 1982 to 1984. He also served as the President of the Municipal Council of the City of San Jose. From 2010 to 2011 he served as Minister of Foreign Affairs and from 2011 to 2014 served as Minister of Environment and Energy. While in office, he was a board member of the Costa Rican Petroleum Company (RECOPE), the Public Transportation Council and the National Emergency Commission. He also worked as a consultant for the United Nations, World Bank, the Inter-American Development Bank and other development organizations. He serves as a Full Professor at INCAE Business School.

Creating a Green Republic: Payments for Environmental Services in Costa Rica, 1994–2005

Read more about Creating a Green Republic: Payments for Environmental Services in Costa Rica, 1994–2005

Type

Case Studies

Author

Blair Cameron

Keywords

bureaucratic structure

monitoring

institutional capacity

ecosystem

financing mechanism

Focus Area(s)

Natural Resources

Critical Tasks

Common pool resources & public goods

Conserving forests

International conventions & charters

Resource monitoring

Resource protection & enforcement

Country of Reform

Costa Rica

Full Publication

Costa Rica Creating a Green RepublicToU_1.pdf

BC_Forestry_CostaRica.txt

Abstract

In 1994, Costa Rica's new minister of the environment, René Castro, faced a difficult task. The finance ministry was planning to cut the funding of a subsidy program that had started to reverse decades of forest loss, and Castro urgently needed a new policy that would sustain the program's progress. First, Castro built a broad-based coalition to press for a revamped national forestry law. The coalition persuaded the legislature to ban the conversion of forested land to other uses and to create incentives for landholder compliance. In 1997, Costa Rica implemented the world's first countrywide payments for environmental services program, which recognized the continuing economic contribution of forests in terms of greenhouse gas mitigation, biodiversity conservation, water protection, and scenic beauty. Funded by a new fossil fuel tax, carbon credit sales, and money from companies that benefited from the forests, the program offered landowners financial incentives to preserve and expand tree cover on their properties. The program helped reduce the destruction of primary forest and encouraged reforestation of degraded land. From 1997 to 2005 Costa Rica's forest cover increased to 51% of total land area from 42%.

Blair Cameron drafted this case study based on interviews conducted in Costa Rica in December 2014. The case was funded by the Norwegian Agency for Development Cooperation in collaboration with the Science, Technology, and Environmental Policy program of the Woodrow Wilson School of Public and International Affairs. Case published July 2015.