From Costa Rica to Nova Scotia: Rethinking Carbon and Ecosystem Value
Maybe I am biased, but when thinking about innovative approaches to carbon and ecosystem valuation, I immediately think of my home country: Costa Rica.
Over the past few decades, Costa Rica has transformed its environmental trajectory. Between 1960 and 1986, deforestation rates reached up to 1.4% per year, equivalent to approximately 50,000 hectares of forest lost annually. Today, more than 50% of the country is covered by forest, reversing that trend entirely.
This shift did not happen by chance. It was driven by a courageous policy: the Payment for Ecosystem Services (PES) program.
From Theory to Practice: Creating an Environmental Market
The PES model is grounded in environmental economics. At its core, it is a voluntary transaction where landowners are compensated for providing ecosystem services, such as carbon sequestration, biodiversity conservation, water regulation, and scenic beauty.
Costa Rica formalized this approach through Forestry Law No. 7575, which recognized these services as having economic value, often exceeding that of traditional timber extraction.
This was a paradigm shift: nature was no longer just something to protect, but something to actively invest in.
Innovative Funding: Beyond Government Budgets
One of the most powerful aspects of Costa Rica’s model is how it is funded.
Rather than relying solely on government budgets, the PES program is supported by:
A national tax on fossil fuel consumption
Voluntary agreements with private hydropower producers
International carbon credit transactions (including early agreements with Norway)
Funding from organizations such as the World Bank and the Global Environment Facility
This diversified funding structure made the program more resilient and scalable.
Institutional Strength and Evolution
The program is managed by FONAFIFO, a public agency with operational independence.
Over time, the PES program evolved:
Moving away from uniform payments toward targeted incentives
Supporting agroforestry and natural regeneration
Prioritizing biodiversity-rich and socially vulnerable areas
Integrating gender and equity considerations
This adaptability has been key to its long-term success.
Why This Matters for Nova Scotia
Nova Scotia is at a critical moment.
With growing interest in:
Wetland restoration
Nature-based climate solutions
Carbon quantification and credits
Municipal and provincial climate targets
There is a real opportunity to think beyond traditional conservation models.
Costa Rica shows us that it is possible to:
Build voluntary environmental markets
Link carbon, biodiversity, and water services into a single framework
Use policy + finance + science to drive large-scale landscape change
Importantly, this does not require starting from scratch. Nova Scotia already has:
Strong scientific capacity
Active NGOs and land trusts
Municipal interest in climate innovation
Emerging funding streams (e.g., net-zero and restoration programs)
A Path Forward
Adapting a PES-like model in Nova Scotia would not mean copying Costa Rica but learning from it.
A potential pathway could include:
Piloting projects that combine restoration + carbon measurement + compensation
Developing baseline data for soils, wetlands, and forests
Engaging municipalities and private landowners in voluntary carbon or ecosystem service programs
Exploring blended funding models (public, private, and international)
Final Thought
One of the most important lessons from Costa Rica is that environmental conservation cannot exist in isolation.
It requires coordination between government, science, and society, and a shared understanding that ecosystems are not just natural assets, but economic ones.
If we want to scale climate action in Nova Scotia, we need to start thinking in the same integrated way.