COSTA RICA’s INDC: Challenges and Opportunities Pascal Girot Sectoral Coordinator for Climate Change Ministry of the Environment and Energy COSTA RICA

CURRENT TRENDS INGREENHOUSE GAS EMISSIONS, CLIMATE AND HEALTH RISKS IN COSTA RICA CURRENT TRENDS AND FUTURE OPPORTUNITIES

Greenhouse Gas Emissions by Sector, Costa Rica 2005, 2010 and 2012 (in CO2eq) Año Fuente de emisión

2005

2010

2012

Emisiones expresadas en Gg* CO2 equivalente

Energía

Procesos industriales y uso de productos Agricultura Forestal

Desechos Total

5.922,14 612,62

7.027,66 824,89

7.218,01 980,68

2.959,50

3.118,90

3.129,53

-3.188,14 1.383,81 7.689,93

-2.894,20 1.539,90 9.617,15

-2.007,39 1.864,31 11.185,15

* 1 Gg = 1000 toneladas

Fuente: Instituto Meteorológico Nacional, MINAE, 2015

COSTA RICA: Estimated costs of addressing climate related disasters- 20052015 and projected to 2030 and 2050 Source: Comisión Nacional de Emergencia, 2015 and Proyecto Estado de la Nación, 2015

• Betwen 2005-2011: Total losses due to climate events amounted to US$ 1,130.39 (in 2011 dollars). Over 78% of these losses are related to public infrastructure, and the rest attributed to productive sectors. • In 2014: Losses reported by the agriculture and livestock sector, due to the impact of the EL Niño event, amounted to more than 19 billion Colones (US$35 million) for a total of 13178 farms • In 2015: The Government spent 75 Billion Colones (US$138 Million) to address flood and drought impacts related to El Niño • By 2030: If not addressed, total estimated losses for Costa Rica attributable to climate events could reach US$ 7 Billion • By 2050: If not addressed, total estimated losses for Costa Rica attributable to climate events could reach US$ 30 Billion

Business as Usual (BAU) Scenario for Costa Rica 2015-2050

10

Fuente: Equipo DCC-INDCs con base en fuentes oficiales y estimaciones propias

Installed capacity for electric generation, projected for 20122030

Total motor vehicles in Costa Rica, 19942014 Source: MINAE, Dirección Sectorial de Energía, 2014

Breakdown of Transport Sector Emissions for 2010

Impact of Emissions on Air Quality • La emisión de PM2,5 está directamente relacionada con la combustión de hidrocarburos. • Las mediciones en Costa Rica exceden los límites recomendados por la Organización Mundial de la Salud y normas internacionales como las adoptadas en México y Estados Unidos, entre otras. • Actualmente Costa Rica no cuenta con una normativa que establezca límites para las partículas PM2,5. • De acuerdo con un estudio realizado en el 2011, el costo para el país de la contaminación de aire urbano fue de aproximadamente el 1,1% del Producto Interno Bruto en el año 2010 (Miranda, 2012).

COSTA RICA’s CARBON NEUTRALITY SCHEME

MEDIR

REDUCIR

COMPENSAR

TOTAL FOREST COVER IN COSTA RICA 1940-2010

TIER ONE CALCULATIONS OF TOTAL CO2 REMOVALS BY FORESTS UNDER THE 2007 CARBON NEUTRALITY SCHEME

2013 2013 National Forest Inventory 52.4% of total land cover Total Carbon Stock=804,593,099 TCO2, 52% of which in Soil Carbon

How far have we gone • National Climate Change Strategy • National Development Plan 2014-2018 (Climate Change fully integrated, mentioned 53 times)

• Country Programme on Carbon Neutrality • C-Neutral Brand

• NAMAs (Coffee, Livestock, Urban Transport) • National Adaptation Plan- Road Map • INDCs Process

COSTA RICA’S INTENDED NATIONALLY DETERMINED CONTRIBUTION UNDER THE UNFCCC: A DECARBONIZATION PATHWAY FOR THE COSTA RICAN ECONOMY

La Contribución Nacional • La Contribución Nacional es una obligación para los países signatarios de la Convención Marco de las Naciones Unidas para el Cambio Climático • Debe ser consistente con el Inventario Nacional de Gases de Efecto Invernadero del IMN • Las metas de la Contribución Nacional se determinaron en base a un análisis técnico

• Las metas fue objeto de consulta y negociación con sectores • A partir del 2020: la Contribución Nacional estará sujeta a reportajes periódicos y revisiones.

Milestones in Costa Rica’s Sustainable Development Pathway Carbon Neutrality Goal established(2007)

Costa Rica starts to build a National Sustainable Development Agenda, based on Biodiversity Conservation, Forestry and Renewable Energy

1990

1997

2000

C-Neutral Brand launched 53% forest cover 99% Electricity coverage 92% Electricity generation from renewables

2010

Action Plan for the National Climate Change Strategy (2011)

2015

Environmental Service Payments launched (1997) National Forestry Finance Fund created (FONAFIFO) Eco-tourism Consolidation of National Protected Areas System Service oriented economy Environmental impact assessments (SETENA=

National Climate Change Strategy launched (2009)

Third National Communication presented to the UNFCCC (2014)

INDC Nationally Determined Contribution of Costa Rica (2015) Priority sectors for Mitigation: Transport Agriculture and Livestock Energy Waste

BUILDING BLOCKS OF COSTA RICA’s CLIMATE POLICY

METRICS

REPORTING READINESS PLANNING POLICY FRAMEWORK

REDD STRATEGY

NATIONAL POLICIES GHG’s Inventories Marginal Abatement Costs Curves

NAMAs

INDCs

MRV

LEDS

NAPs BURs

COSTA RICA’s INDC DESIGN PROCESS MÉTRICA (Julio)

VISION PAÍS (

Julio)

TALLERES SECTORIALES y NACIONAL (6 Agosto-16 Setiembre)

REDACCION

FINAL (28 Setiembre)

• Actualización Datos Inventario (IMN, BUR) Proyección Escenarios Emisiones (BUR) Cálculo de Costos Marginales de Abatimiento (MACTool) • Taller Escenarios de Desarrollo Socio-Económico (CCAFS) • Diseño Documento Borrador Contribución Nacional • Metas Sectoriales de Mitigación • Componente Adaptación • Agricultura • Forestería • Residuos • Energía • Transporte • Taller Nacional de presentación de INDC • Elaboración Documento Final de Contribución Nacional • Publicación en web para comentarios todo público • Revisión Final y Aval Político • Envío Documento Final a Secretariado CMNUCC

Broad-based participation Gráfico 6 Distribución sectorial del total bruto de actores identificados

Sector

Gráfico 14 Distribución de la participación por sector - Taller Nacional Cifra

Académico

60

Cooperación

21

Equipo de apoyo técnico

11

Prensa

7

Privado

107

Público

177

Sociedad Civil Total bruto de actores interesados

52 436

CLIMATE ACTION Costa Rica centers its approach around the concept of climate action which seeks to:  Increase the resilience of Costa Rican society  Strengthen the capacities for low-emissions developmenty Costa Rica is building its Climate Action:  By mitigating its GHG emissions,  By adapting to the inevitable impacts of climate change

CONTRIBUTION IN MITIGATION Costa Rica reaffirms its aspiration to achieve Carbon by 2021, as part of its pre-2020 voluntary action Costa Rica proposes a máximum absolute limit on emissions of 9,374,000 TCO2e by 2030, Decarbonization Milestones:  1.73 TCO2e/ Per Capita by 2030  1.19 TCO2e/ Per Capita by 2050  -0.27 TCO2e/ Per Capita 2by100

Ambition ENERGY 100% renewable electricity generation by 2030 AGRICULTURE, LIVESTOCK AND INDUSTRY Low emissions livestock and coffee production (NAMAs) Fuel Switching to Biomass in selected industries

FORESTRY Environmental Service Payment Programme for REDD and Adaptation

TRANSPORT Invest in Low Emissions Public Transport: Electric Intercity train Carbon emissions fee for private transport Emissions standards for private vehicle imports

URBAN WASTE Reduce emissions through increase recycling and sustainable waste management

MRV system Board of Fund

Secretariat

Executing Agencies

Central monitoring, validation and verification unit

flow of funds + performance

11/02/2016

Monitoring and reporting of:

+

skills and knowledge

Environmental, social, and economic cobenefits

Training and advice to extension workers , audtors, farmers, and millers

National Carbon Fund

Mitigation of CH4

Mills Reduction of CO2

Mitigation of N 2O

Farms Sinking and Retaining of CO2

+

adoption of practices

+

GHG

+

Cobenefits

Contribution in Adaptation Costa Rica will complete the design of its National Adaptation Plan by 2018 Key Adaptation Meaures: Strengthen Green and Inclusive Development Strategy Extende the Environmental Service Payments for Ecosystem Based Adaptation Articulation with National Disaster Risk Reduction Plan Sustainable production practices for Community based Adaptation Urban and Land Use Planning for Adaptation

THROUGH : Capacity Development Technology Transfer Access to Financial Mechanisms

INTERNATIONAL REVIEW PANEL • Costa Rica was one of the few countries which submitted its INDC to scrutiny by an international review panel. • The panel was composed by 6 international climate policy experts from multilateral organizations and international NGOs (UNDP, World Bank, International Institute for Sustainable Development and International Relations –IDDRI-, the World Resources Institute-WRI, the Regional Negotiating Block -Alianza Independiente de Latino América y el CaribeAILAC and NIVELA an international NGO) • There was unanimous support for Costa Rica’s ambitious mitigation and adaptation targets • Suggestions for changes and edits on both form and substance were incorporated into the final draft of the INDC submitted to the UNFCCC

USE OF INTERNATIONAL MARKET MECHANISMS • Costa Rica reserves its sovereign right to use international compensation units to achieve its mitigation targets as established under its INDC, as well as through the development of its Domestic Emissions Compensation Market. • All compensation units that are to be transfered to third parties outside the country will be accounted for in the National Inventory to avoid double accounting.

INSTITUTIONAL MAKE-UP • Consejo Interministerial de Cambio Climático • Mecanismos ad hoc de coordinación operacional • Comisiones Mixtas Temáticas (Agropecuario y Forestal, Transporte y Energía)

• Dirección de Cambio Climático • (coordina: DSE, IMN, FONAFIFO, SINAC, AFE, ICE, RECOPE, entre otros).

• Consejo Científico de Cambio Climático • Consejo Consultivo Ciudadano de Cambio Climático

EQUITY AND TRANSPARENCY • A long-standing commitment by Costa Rica to defend universal principles of human rights and gender equality • A gender-sensitive approach to public climate policy • The implementation of the Cancún Safeguards on REDD • The application of Free, Prior and Informed Consent with Indigenous Peoples . • A deepening of citizen-driven, sector-wide dialogues initiated in 2015, through 2020 • A policy of transparency and public access to open data

CONCLUSIONS AND NEXT STEPS • Costa Rica has always stood out as a proactive country in climate change policy, with a solid track record of early action. • It has a developed institutional framework and has put fiscal mechanisms in place that enable cross-subsidies between sectors (Tax on fossil fuels to fund environmental service payments programmes) • It has strengths in sustainable forest management (which has enabled Costa Rica to increase its forest cover to over 52% of its territory) and in terms of electricity generation based on renewable sources. • There are sectors that are fully on board to work towards emissions reduction and compensation of emissions, in particulary in the agricultural and livestock sector (through Coffee and Livestock NAMAs)

HOW ARE WE CURRENTLY WORKING Participation • Multistakeholder involvement in setting emissions reduction targets

Metrics and Information • GHG Inventory, Scenario Building, Cost Abatement Curves • Monitoring of results under the National Climate Change Strategy • Monitoring and evaluation of sectoral emissions (MRV)

Governance Structure • Interministerial coordination • Stakeholder consultation platform • Scientific council

Current Logframe of National Climate Change Strategy

Key Challenges and Opportunities • Fully Developing National Registry SINAMECC • Implementation of NAMAs (i.e NAMA Café, Ganadería) • Coordination of Support for INDC (proposals, workshops, technical assistance, financial) ( PMR-WB, GIZ, UNDP) • Synergies between INDC and NAP processes • Developing common accounting and guidance (Regional Programme Support for Common Accounting Rules-GIZ-). • South-South Cooperación (Goals for admissions into OECD) • Research and Development- for improving on metrics • Financial Architecture (fiscal resources, loans, grants)

Marginal Abatement Costs curve for Taxi for the San Jose Metropolitain Area (in Colones)

NEXT STEPS • Development of new fiscal and financial mechanisms: • New generation of taxes and fees based on emissions from transport, • Disincentives for high emissions investments • Stimulus packages for investment in energy efficiency and renewable energy • Technology transfer and investment in sustainable transport, energy and water use efficiency • Development of fuel switching options in industrial sector • Funding for Adaptation at the local level, based on avoided losses in productive sectors • Sustainable public investment, with eco-efficiency and risk management criteria