Carbon neutrality represents a state where an entity’s release of greenhouse gases is balanced by an equivalent amount of removal. This balance is achieved through direct actions that reduce emissions or by offsetting them using carbon sinks. Costa Rica has established a global reputation as a pioneer in environmental protection and a model for ecological sustainability. The country’s ambitious environmental goals often lead to the question of whether the nation has already achieved net-zero emissions.
Clarifying the National Carbon Neutrality Goal
The short answer to whether Costa Rica is carbon neutral today is no. A misconception exists because the nation’s electrical grid has consistently run on nearly 100% renewable sources for several years. This clean electricity generation does not translate into full national carbon neutrality, as the country’s greenhouse gas inventory includes all economic sectors.
The official government target for achieving net-zero emissions is set for 2050, as outlined in the National Decarbonization Plan (NDP) launched in 2019. This plan provides a roadmap for transforming the entire economy, not just the power sector. Achieving true neutrality requires addressing emissions from transportation, industry, waste management, and agriculture, while maintaining the country’s carbon sinks.
Costa Rica’s original aspirational goal of becoming carbon neutral by 2021 was not met, prompting the establishment of the detailed 2050 target. The 2050 goal commits the nation to a maximum of 9.11 million tons of carbon dioxide equivalents (CO2e) in net emissions by 2030. This long-term strategy involves a phased approach to decarbonization across ten key areas of the economy.
Decarbonizing the Electrical Grid
The near-total decarbonization of the electrical supply is the foundation of Costa Rica’s environmental standing. Since 2014, the country has routinely generated over 98% of its electricity from renewable sources, sometimes operating on 100% renewable power for hundreds of consecutive days. This achievement is possible due to a geographic mix of resources and long-term infrastructure investment.
The electrical matrix relies on five major renewable sources: hydroelectric, geothermal, wind, solar, and biomass. Hydropower is the dominant source, accounting for approximately two-thirds of the annual generation. This reliance on water resources necessitates complementary sources to mitigate seasonal variability during dry periods.
Geothermal energy, harnessed from volcanic resources, provides a stable, baseload power supply independent of weather conditions. This consistent output, along with wind power, helps ensure the grid remains resilient and clean year-round. The stability provided by the diverse mix, particularly hydro and geothermal, enables the country to avoid reliance on fossil-fuel-burning thermal plants.
Reforestation and Carbon Sink Programs
The second half of the neutrality equation involves the country’s successful efforts to absorb carbon dioxide. Costa Rica experienced high deforestation rates in the 1970s and 1980s, with forest cover plummeting to about 21% of the landmass. This crisis was reversed through proactive national policy.
The recovery began with the introduction of the Payment for Environmental Services (PES) program, established in 1996. The PES program provides financial compensation to private landowners for protecting existing forests, promoting reforestation, and managing sustainable plantations. Landowners are paid for environmental benefits, including biodiversity protection and greenhouse gas mitigation through carbon sequestration.
This system is largely financed by a dedicated tax on fossil fuels, applying a “polluter pays” principle to fund conservation. As a result, forest cover has substantially recovered, now covering well over half of the national territory. These protected forests function as the nation’s primary carbon sinks, offsetting emissions from other sectors.
The Primary Remaining Emissions Challenge
Despite the successes in power generation and forest recovery, the transportation sector represents the largest hurdle to achieving national carbon neutrality. The majority of the country’s remaining greenhouse gas emissions originate from vehicles that run on imported fossil fuels, primarily gasoline and diesel. This sector accounts for approximately 40% of the country’s total emissions.
The heavy reliance on private vehicles and a public transport system dependent on hydrocarbons creates a substantial bottleneck for the National Decarbonization Plan. Decoupling transportation from fossil fuel consumption requires massive public and private investment in electric mobility infrastructure and modernization of the national vehicle fleet. While the NDP aims for significant electrification of public transport by 2050, the current emissions profile highlights the distance left to travel.