Costa Rica’s Carbon Neutrality Will Affect Land Prices

Dec. 11, 2008 - PRLog -- The strategy will build on Costa Rica’s decision to tax fossil fuels in 1996 with the money raised allocated to the National Forestry Financing Fund. This 3.5% tax on gasoline in the country is used for payments to compensate landowners for growing trees and protecting forests and its government is making further plans for reducing emissions from transport, farming and industry.

These are part of a ‘payment for environmental services’ programme that pays landowners who manage forests for their carbon sequestration and storage alongside management for water production, biodiversity and scenic beauty.

In 2007 Costa Rica planted more than five million trees or 1.25 per person making it the highest per capita planting in the world. Various industries are supporting the initiative including a Carbon Neutral plan by Costa Rica’s banana sector.

Other elements of the strategy include increasing the percentage of renewable energy generation to well over 90 per cent and action on energy efficiency including energy saving appliances. In 2004, 46.7% of Costa Rica's primary energy came from renewable sources while 94% of its electricity was generated from hydroelectric power, wind farms and geothermal energy in 2006.

Monaco, Norway, Iceland and New Zealand have also announced Carbon Neutrality plans but  Costa Rica has a headstart, according to the United Nations, in 2003 the country produced roughly 1.5 tonnes of carbon per person, compared to close to 10 tonnes in Norway.

What does mean for investors in land in Costa Rica?

Costa Rica's plans to become carbon neutral will require the encouragement of existing initiatives and a range of further initiatives.

Those initiatives include the further planting of trees and further preservation of land. These incentives will reduce the amount of developable land. This in turn will push up land prices.

From a macroeconomic standpoint there has never been a better time to invest in development land in Costa Rica.

Costa Rica Invest’s current investment opportunity is Di Pacifico Dos, a 400ha teak plantation zoned for development and spectacularly located just off the Pan American highway and equidistant between Costa Rica’s two international airports San Jose and Liberia.  With spectacular views over the gulf of Nicoya purchasers of plots in this plantation benefit from a double investment: development land with the valuable commodity teak growing on it.

James Cahill, Managing Director of Costa Rica Invest, says “in the medium term Costa Rica’s plans to be carbon neutral are good for the world and also good for our investors. Our investors contribute to reduction in jungle logging by providing a plantation source of teak. They will then also benefit from the reduction in available development land and increase in land prices”.

Costa Rica Invest specialises in eco-friendly, ethical, high yield investments.  All projects are based in the best locations in Costa Rica, consisting of plots of development land with an environmentally friendly angle.

Their current development in ‘Di Pacifico Dos’ combines a teak commodity investment traded in USD on plots of land zoned for development.

With a double investment in locations where land prices are increasing rapidly, backed by a sound commodity that is constantly ‘growing’,  is it any wonder they have so many repeat investors creating wealth naturally?

For more information, including high resolution images, Costa Rica profile, case studies, press only:  Judy Ferguson, +353 (0)1 272 4184, pr@costaricainvest.ie

For more information on Costa Rica Invest and their products:
http://www.costaricainvest.ie or http://www.costaricainvest.co.uk

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Costa Rica Invest specialises in enironmentally friendly, ethically responsible, high yield investments, primarily in Costa Rica. Di Pacifico Dos is Costa Rica Invests current project investing in development land with the added value of teak trees.