November 15, 2022
Costa Rica has been a pioneer in greening its economy, and its efforts to fight climate change and restore ecosystems have earned the country international recognition. But climate change continues to pose important risks, most acutely through natural disasters. Costa Rica is now the first country to benefit from the IMF’s new Resilient and Sustainability Facility to support the country’s climate change reforms.
In an interview with Country Focus, Manuela Goretti, IMF Mission Chief (right), and Nogui Acosta Jaén (left), Costa Rica’s Minister of Finance, talk about the new facility.
What are the key challenges Costa Rica is facing from climate change and what is your strategy to tackle them?
Minister Acosta Jaén: Due to its geographical location, Costa Rica is highly exposed to climate change risks and is ranked as 61st out of 182 countries by the ND-GAIN index. Although Costa Rica is in a better position than its neighboring countries, estimates from the Ministry of National Planning and Economic Policy indicate that, in the last three decades, the direct cost of climate change disasters was about half a percent of GDP per year, mainly related to infrastructure.
Costa Rica has worked on many initiatives to mitigate the effects of climate change and adapt to risks, while protecting the most vulnerable. We already have relatively low emissions due to our environmentally friendly economic model, with significant growth in sectors like sustainable tourism and hydropower generation. Almost 100 percent of the country’s …