Launch presentation for the first Environmental Performance Review of Costa Rica.

1. Launch event
Mathilde Mesnard, OECD Environment Deputy Director
6 October 2023, San Jose
Costa Rica 2023

2. Costa Rica has reversed deforestation
-10
-5
0
5
10
15
20
1990-2000 2000-10 2010-15 2015-20
1,000
ha/year
Afforestation Natural expansion
Deforestation Forest area net change
Annual change in forest areas, 5-year average Land use, 2021
Source: FAO (2020), Global Forest Resource Assessment 2020; OECD (2023), OECD Environment Statistics (database).
Other areas, 5% Arable
land &
permanent
crops, 12%
Permanent
meadows &
pastures,
24%
Forests,
60%

3. 50
60
70
80
90
100
110
120
130
140
150
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
GDP
GHG emissions
from fuel
combustion
Energy supply
Some progress in decoupling environmental
pressures from economic growth (1)
GDP and selected environmental indicators, index 2010 = 100
Sources: IEA (2023), IEA World Energy Statistics and Balances (database); OECD (2023), IEA CO2 Emissions from Fuel Combustion
Statistics; OECD (2022), OECD Economic Outlook (database).

4. 50
60
70
80
90
100
110
120
130
140
150
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
GDP
NOx emissions
Municipal waste
generation
Gross freshwater
abstractions
Some progress in decoupling environmental
pressures from economic growth (2)
GDP and selected environmental indicators, index 2010 = 100
Note: Index 2016 = 100 for municipal waste and freshwater abstractions. Three-year moving average for nitrogen balance.
Sources: OECD (2022), OECD Economic Outlook (database); OECD (2023), Environment Statistics (database).
Nitrogen surplus

5. Concentration levels of fine particulate matter
exceed WHO guidelines
Sources: OECD (2023), "Air quality and health: Exposure to PM2.5 fine particles - countries and regions", OECD Environment
Statistics (database).
Expand the air quality monitoring network
0
5
10
15
20
25
30
Micrograms
per
cubic
metre
(old) WHO guideline
Mean population exposure to PM2.5, 2020
2021 WHO guideline

6. Costa Rica still relies on landfills for waste disposal
Sources: OECD (2023), "Municipal waste, generation and treatment", OECD Environment Statistics (database).
Municipal waste management plan and capacity; extended producer
responsibility; waste collection fees.
Municipal waste treatment, 2020 or 2021
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Switzerland
Denmark
Belgium
Finland
Sweden
Japan
(2020)
Netherlands
Austria
(2020)
Norway
Luxembourg
Slovenia
United
Kingdom
Korea
(2020)
Lithuania
Ireland
(2020)
Estonia
Italy
(2020)
France
Poland
Slovak
Republic
Czech
Republic
Iceland
(2020)
Hungary
Portugal
(2020)
Latvia
(2020)
Israel
Greece
Costa
Rica
Türkiye
(2020)
Landfill Recycling Composting Incineration with energy recovery Other

7. Wastewater treatment lags behind other
countries in the region and the OECD
Note: OECD average excludes Iceland in the right panel and New Zealand in the left panel. Argentina: data are estimates for urban areas only. Colombia: data
is estimated for urban centres. Mexico: data is estimated based on treated wastewater; data for total connection to wastewater collecting system date back
to 2010. Source: OECD (2023), ”Water”, Environment Statistics (database); WHO/UNICEF (2021), Joint Monitoring Programme for Water Supply, Sanitation and
Hygiene.
Accelerate and scale up investment; improve water quality monitoring.
Connection to wastewater collecting systems Connection to wastewater treatment plants
% of resident population, 2021 or latest available year
0
10
20
30
40
50
60
70
80
90
100
Costa
Rica
Colombia
Argentina
Brazil
Mexico
Peru
OECD
Chile
0
10
20
30
40
50
60
70
80
90
100
Costa
Rica
Colombia
Brazil
Argentina
Peru
Mexico
Chile
OECD

8. Costa Rica set the pathway towards a
net-zero economy
Historical and projected GHG emissions and targets
Source: OECD (2023), IEA CO2 Emissions from Fuel Combustion Statistics: Greenhouse Gas Emissions from Energy; MINAE (2020),
Contributión Nacionalmente Determinada 2020; SINAMECC (2020), Inventario Nacional de Gases de Efecto Invernadero.
Fully implement and systematically review the PND 2018-50
-5
0
5
10
15
20
25
30
35
40
1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Mt CO2 eq.
NDC 2030
GHG emissions incl. LULUCF
LULUCF
GHG emissions from fuel combustion
(IEA)
GHG emissions excl. LULUCF
NDC net
emission limit
In 2021-2030 :
106.53 Mt CO2e

9. Renewables account for half of energy
supply and 100% of electricity generation
Source: IEA, "World energy statistics", IEA World Energy Statistics and Balances (database).
Further expand and diversify the renewable electricity mix
OECD countries with the 10 largest shares
of renewables in primary energy, 2022 Electricity production by source, 2022
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Iceland
Costa
Rica
Norway
Latvia
Sweden
New
Zealand
Denmark
Finland
Austria
Portugal
Renewables Fossil fuels Nuclear Other
Hydro, 73%
Geothermal,
13%
Wind/solar,
13%
Biofuels, 1%
Costa
Rica

10. Some energy use trends are of concern
Source: IEA, "World energy statistics", IEA World Energy Statistics and Balances (database).
More effort is needed to improve energy efficiency (through
minimum energy performance standards and price signals)
Energy consumption of selected sectors, 2010-21
0
20
40
60
80
100
120
140
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
2010=100
Industry Transport Residential Commercial and public services

11. pandemic
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
0
1
2
3
4
5
6
7
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Million
vehicles
GHG
emissions
(MtCO
2
)
Decarbonising transport is key to meet climate
mitigation goals and improve quality of life
Source: CONARE (2020), Informe Estado de la Nación 2020; MINAE (2023), Vehículos eléctricos en Costa Rica, Dirección de
Energía; OECD (2023), IEA CO2 Emissions from Fuel Combustion Statistics: Greenhouse Gas Emissions from Energy; SINAMECC
(2020), Inventario Nacional de Gases de Efecto Invernadero.
Integrated public transport, urban planning, vehicle standards and
electric mobility
GHG emissions by source, 2017
Vehicle fleet
Transport emissions
GHG emissions from transport and vehicle fleet
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Number of electric vehicles
Residential &
commercial, 4%

12. Taxes on fuel use and vehicles are an important source of
fiscal revenue but should be better designed
Sources: OECD (2022), “Environmental Policy”, Environment Statistics (database).
Implement the planned green tax reform, including taxes on energy
and vehicle, and road/congestion charges
Environment-related tax revenue as a share of GDP, by tax base, 2021
0
0.5
1
1.5
2
2.5
OECD Latin America and Caribbean Costa Rica
% GDP
Energy Transport Pollution & resources

13. Fuel taxes cover less than half of Costa Rica’s GHG emissions
Note: The Effective Carbon Rate (ECR) is the sum of permit prices from emissions trading systems, carbon taxes and fuel excise taxes.
The Net ECR is the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.
Source: OECD (2022), Pricing Greenhouse Gas Emissions: Turning Climate Targets into Climate Action.
Carbon pricing should be a key element of the green tax reform
Share of GHG emissions subject to a positive net effective carbon rate, selected
countries in Latin America and the Caribbean, 2021
0
10
20
30
40
50
60
70
80
90
Jamaica
OECD
Chile
Costa
Rica
Mexico
Panama
Peru
Guatemala
Dominican
Rep.
Colombia
Argentina
Paraguay
Uruguay
Brazil
%
Share
of
emissions

14. Fossil fuel subsidies are relatively low but on
the rise
Note: International comparisons are only indicative due to the estimation methodology and data collection. 2000 data for Nicaragua,
Panama, Paraguay and Peru. Source: OECD and IISD (2023), The Fossil Fuel Subsidy Tracker, https://fossilfuelsubsidytracker.org/
Develop a subsidy reform plan
Fossil fuel subsidies in percentage of GDP
Costa Rica
0 1 2 3 4
Panama
Costa Rica
Paraguay
Chile
Ecuador
Bolivia
Percentage of GDP
0.00%
0.02%
0.04%
0.06%
0.08%
0.10%
0.12%
0.14%
0.16%
0.18%
0.20%
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Selected Latin American countries, 2021

15. The transition to a green, circular and decarbonised
economy requires large-scale investment
Sources: OECD (2023), “General Government Accounts, SNA 2008 (or SNA 1993): Government expenditure by function”,
OECD National Accounts Statistics (database).
Reallocate resources to address infrastructure gaps, explore new
financing avenues & improve spending efficiency
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
0
20
40
60
80
100
120
140
160
180
2012 2013 2014 2015 2016 2017 2018 2019 2020
Percentage
CRC
billion,
constant
2017
prices
Capital investment Current expenditure
% of govt capital
investment
Government environmental
expenditure by domain,
average %, 2015-20
Government environmental expenditure by type
% of govt total spending

16. Thank you | Gracias
Contacts
Head of Division: Nathalie Girouard Nathalie.Girouard@oecd.org
Report Co-ordinator: Ivana Capozza Ivana.Capozza@oecd.org
Communications: Natasha Cline-Thomas Natasha.Cline-Thomas@oecd.org