Costa Rica is globally recognized for its commitment to environmental protection and climate action. With a predominantly renewable electricity grid and increasing forest coverage, the country has taken significant steps toward sustainability. However, to achieve its ambitious goal of net-zero greenhouse gas (GHG) emissions by 2050, as outlined in the National Decarbonization Plan (PND), concrete actions in key economic sectors are essential. This project focuses on identifying decarbonization options in three critical sectors: sugarcane, fishing, and wood products, selected for their economic relevance and impact on GHG emissions.
The study includes a detailed description of emission-generating processes in each sector, based on public information and input from key stakeholders such as LAICA, INCOPESCA, and FONAFIFO. Current technologies and products are identified, along with decarbonization alternatives, with costs, performance, and emissions documented in technical sheets. Additionally, legal, technical, economic, and commercial barriers to adopting these options are evaluated, with solutions proposed in line with international recommendations. Using a proven methodology, a cost-benefit analysis is conducted to determine the financial viability of the alternatives, complemented by a sensitivity analysis to identify conditions that improve their profitability.
The results include the creation of marginal abatement cost curves, which prioritize options based on their emission reduction efficiency, and the development of mitigation scenarios for each sector. These scenarios are integrated into an updated decarbonization catalog, serving as a tool to guide the transition to a low-carbon economy. This project not only contributes to national decarbonization goals but also offers a replicable model for other countries seeking to reduce their carbon footprint in key industrial sectors.
Categories:
Decarbonization & emission reduction
Energy transition & clean technologies
Start date:
March 2022
Closing date:
July 2022
Funding Partners:
World Bank Group
Location:
Costa Rica