Payment of Environmental Services

The PSA Program consists of a financial recognition by the State, through the Fonafifo, to the owners of forests and forest plantations because of the environmental services they provide that directly affect the protection and improvement of the environment.

 

In accordance with the Forestry Law Nº. 7575, Costa Rica recognizes the following environmental services:

Mitigation of greenhouse gas emissions (fixation, reduction, sequestration, storage and absorption).

Protection of biodiversity for its conservation and its sustainable, scientific and pharmaceutical use, research and genetic improvement, as well as for the protection of ecosystems and ways of life.

Water protection for urban, rural or hydroelectric use.

Scenic natural beauty for tourism and scientific purposes.

The most important feature of this Program is that it changed the traditional concept of "subsidy" or "incentive", to "economic recognition" for the environmental services provided by the forest, which also contributes to increasing its ecological, social and economic value.

Forms and instructives

Fundamental pillars of the Program Payment of Environmental Services

The Program for Payment of Environmental Services (PPSA), as a financing mechanism for the management, conservation and sustainable development of forest resources and biodiversity, is based on four fundamental pillars: Institutionality, Legal Framework, Financing and Monitoring and Evaluation.

 

The following pillars are described below:

 

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Institutionality

The Program for Payment of Environmental Services (PPSA) has facilitated and promoted, since its beg…

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Legal framework

During the 1990s, Costa Rica experienced a change in the environmental area, with legislation that f…

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Financing

Initially, the main source of financing for the Program for Payment of Environmental Services (PPSA)…

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Monitoring and evaluation

FONAFIFO designed a monitoring and evaluation scheme supported by modern technology and qualified pe…

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