Costa Rica shows how a green economy works

Costa Rica's 'green economy' shows that money can grow on trees

A creative approach to sustainable development includes paying for environmental resources, such as forests and water

26 June 2012 - Controversy stalks the green economy concept, even as it topped the agenda of world leaders at the Rio+20 summit. Its detractors say it spells a commodification of nature that will transfer money, power and land to elites and corporations while supporters counter that our collective failure to value nature is why forests and other ecosystems are in such trouble. As the world watches and waits to see how giants like the US and China respond to our environmental, social and economic crises, a small country – Costa Rica – has big lessons to share.

The story emerged last week at the International Institute for Environment and Development's fair ideas conference in Rio, when Costa Rican politicians, community leaders and researchers related their experiences of putting the green economy model into practice as they pioneered payments for environmental services (PES).

The idea is simple: landowners are rewarded financially for actions that maintain environmental services that benefit other people, who then pay for that gain. Lowland water users would, for example, pay highland communities that plant or protect forests and so maintain the flow of water downstream. read more>>>