Environment at a Glance: Costa Rica
Table of contents
The OECD Environment at a Glance Country Notes are designed to support transparent, evidence-based information. They provide concise and descriptive overview of progress across major environmental issues, including climate, air quality, freshwater resources, waste and the circular economy, and biodiversity conservation. They feature selected environmental indicators, building on harmonised datasets available on OECD Data Explorer. Differences with national data sources can occur due to delays in data treatment and publication, or due to different national definitions and measurement methods. The text of this country profile is complementary to and has benefited from the OECD Environmental Performance Review of Costa Rica 2023. See the Reader’s guide to the Environment at a Glance Country Notes for more information.
Costa Rica is a small open economy with an outward-oriented strategy and an ambitious sustainable development vision. The economy has grown steadily over the last decades, although gross domestic product (GDP) per person remains less than half the OECD average. The main sectors are manufacturing (in particular high technology), services (in particular tourism) and agriculture, forestry and fisheries. Costa Rica has built a world-renowned green trademark as well as a developed eco-tourism, centred on nature conservation, reforestation and national parks.
GDP contracted in 2020 due to the COVID-19 pandemic, The tourism sector was the most affected, which led the country to sign an agreement with the International Monetary Fund to recover and stabilise the economy. A strong rebound from the manufacturing sector in 2021, particularly of medical equipment, and a gradual recovery in services and agriculture, lifted GDP above pre-crisis levels (OECD, 2022[1]) .
Despite significant social advances, poverty and inequality remain high, and about 44% of employment is informal. Population density has increased, particularly in the Greater Metropolitan Area of San José, Alajuela, Cartago and Heredia, which is home to about 73% of the population.
Costa Rica has abundant water resources and about 373 mineral deposits, including copper, manganese, gold, magnetite, and bauxite. Located on the Central American isthmus, the country has over 200 active and extinct volcanoes, steep mountain slopes and 1 290 km2 of coastlines. The geographical and geomorphological conditions of the country result in a rich biodiversity and an incredible variety of flora and fauna. Forests cover approximately 60% of the territory, with primary and secondary rainforests, dry forests, mangroves and cloud forests, as well as swamps, wetlands, raging rivers, lakes, and waterfalls.
Costa Rica has a low carbon intensity per person thanks to the extensive use of renewable energy, which accounted for 98.6% of the electricity supply in 2025. The per person production-based (i.e. produced within the territory) and demand-based (or footprint, i.e. including emissions incorporated in imported goods) greenhouse gas (GHG) emissions remain well below the OECD averages, but have remained relatively stable during 1996-2020. Demand-based emissions are higher than production-based emissions, which means that Costa Rica is a net importer of GHG emissions embodied in its final demand (i.e. demand for goods and services by all residents).
In the last decade, Costa Rica managed to decouple its economic activity from carbon dioxide (CO2) emissions from fuel combustion and total energy supply. Since 2014, the land use and land-use change (LULUCF) sector acts as a net sink, mainly thanks to a reduction in deforestation, thus reducing net emissions. Thanks to the country’s renewable-based electricity generation, GHG emissions from energy industries have a smaller share of total emissions than the OECD average. Fuel combustion in end-use sectors (manufacturing, transportation, households and services) account for nearly all energy-related emissions. Transport, nearly exclusively by road, is the largest and a growing emission source, due to the increase in the vehicle fleet, especially private vehicles. Agriculture, representing about of fifth of emissions, accounts for a larger share that in other OECD countries, reflecting the importance of agricultural production in the economy. However, its emissions have remained stable and its share in total emissions declined. Waste management is also a larger and increasing, source of emissions than on average in OECD countries, due to the reliance on landfills for waste disposal. Emissions from waste grew due to the increasing population and the associated consumption levels. CO2, mostly from the energy sector, represents 55% of total GHG emissions, while methane (CH4), mostly from agriculture and waste, represents 34% (Costa Rica, 2024[2]).
Costa Rica has a diverse energy mix, including a wide variety of renewable sources used for electricity generation. Renewable energy production comes mostly from hydropower, with significant contributions of geothermal energy and wind power and to a lesser extent biomass and solar energies. In recent years, almost all of electricity was generated from renewable sources. However, the country is heavily dependent on imported fossil fuels, which are mainly consumed in the transport sector.
Emissions of major air pollutants have increased since 2000. Transport and industrial combustion are the main emitters of nitrogen oxide (NOx). NOx emissions from road transport almost doubled since 2000 due to the increase in the number of vehicles. Industrial processes and transportation are the main sources of non-methane volatile organic compounds (NMVOCs).
Emissions intensities per person are below the OECD average, except emissions from carbon monoxide [CO], but intensities per unit of GDP are above the OECD average. High CO emission intensities are due to the relatively old vehicle fleet.
The level of exposure of the population to PM2.5 concentrations has decreased since 2010. However, it remains above the OECD average in all regions and the 2021 guideline value of 5 µg/m3 recommended by the World Health Organisation (WHO).
Costa Rica has abundant freshwater resources and does not suffer from water stress. The per person intensity remains amongst the highest in the OECD, partly due to tourism: authorised abstractions of freshwater for public supply (permits) per person have increased by 42% between 2016 and 2024. The level of freshwater abstracted beyond legally authorised amounts is not known. Agriculture is the largest user.
In the past two decades, Costa Rica has been experiencing growing water demands due to urbanisation and developments in industry, irrigation and hydroelectricity. In coming decades, demands are projected to increase further, raising questions as to the sustainability of supply. Despite ample water reserves, the contamination of aquifers and rivers by untreated wastewater, stormwater, unsustainable land use, and industrial effluents, combined with the effects of climate change, exerts an important pressure on water resources.
In Costa Rica, most of the population (74.5%) has an independent treatment, 24.6% are connected to a public sewage treatment network, but only 7.2% are connected to a public wastewater treatment plant with primary or secondary treatment. Only about 15.5% of the sewerage collected receives some type of treatment (CONARE, 2022[3])
Water sanitation has long been an important environmental issue in Costa Rica. Since 2016, the government is working towards implementing individual or collective treatment systems and established a National Wastewater Sanitation Policy (PNSAR) with the objective to achieve, by 2045, the safe management of all wastewaters generated in the country.
The generation of municipal waste1 has increased since 2016, mainly driven by waste from commerce and trade, small businesses, office buildings, institutions and municipal services. Waste generated by households remained stable. Amounts generated per person are higher than the OECD average, partly reflecting the additional waste generated by tourism. Waste collection rates vary widely across municipalities and nearly 10% of households still burn or bury their waste.
Waste management has long been an important environmental issue in Costa Rica. Despite remarkable progress in closing illegal dumpsites, waste disposed of in inappropriate sites remains considerable, especially in some rural regions. Measures to recover municipal waste were initiated in 2014, but recovery rates remain low and are among the lowest in OECD countries. In 2024, only 12% of collected municipal waste were recycled and 1% composted.
The government is working to implement a comprehensive waste management system that is efficient and low in GHG emissions. Examples are the Action Plan for Integrated Waste Management and the National Composting Plan adopted in 2021, as well as the Decarbonisation Plan 2018-2050 and the Nationally Determined Contribution 2020 that include measures (targets) to ban organic waste from landfills by 2030.
Costa Rica has some mineral resources and is an exporter of agricultural products. Material autonomy is high for most categories, except for fossil fuels. Consumption of materials has been fluctuating since 2000 with an overall increase driven by urbanisation and population growth. However, the increase was slower than GDP growth, resulting in improved material productivity. Material intensity and footprint per person are below the OECD average, partly reflecting Costa Rica’s low-income levels.
Biomass accounts for half of the material used, followed by non-metallic minerals (mainly construction materials from the extraction of sand and gravel, imports of chemicals and fertilizers, etc.).
Costa Rica’s terrestrial ecosystems comprise of dry forests, rainforests, moorlands, mangroves and other wetlands, and cover more than half of the territory. Costa Rica has managed to increase its forest cover to approximately 60% of land (through reforestation policies), while 31% of the land is used for agricultural purposes. The long Caribbean and Pacific coasts give rise to a wide variety of coastal marine ecosystems, including coral reefs, mangroves, coastal seabed ecosystems, barred bottoms, sandy and rocky beaches, seagrass meadows, upwelling areas such as the Gulf of Papagayo, estuaries, an oceanic island (Cocos Island), coastal islands, an oceanic trench more than 4 000 metres deep, hydrothermal vents and depth, and a thermal dome.
Pollution from unsustainable production and consumption (e.g. intensive fishery and agricultural practices), habitat loss from growing conversion of forested areas into agricultural land and artificial areas, and climate change are the main pressures on biodiversity in Costa Rica.
Costa Rica is home to around 6% of the world’s biodiversity and plays a crucial role in protecting it. More than 270 species of endemic wildlife have been identified. Analyses on the conservation status of species indicate that 127 amphibian, 291 bird, 104 reptile and 95 mammal species are included on threatened species lists.
Terrestrial protected areas cover about 26% of Costa Rican land, well above the OECD average. In addition, the share of protected areas with strict management objectives (IUCN categories I and II) is much higher than the OECD average. Areas with management effectiveness evaluations2 cover about 21% of the land. More efforts are needed to reach the 2030 Global Biodiversity Framework (GBF) target of protecting 30% of terrestrial and inland water areas.
Marine protected areas cover 28% of Costa Rican exclusive economic zone (EEZ), well above the OECD average. This is also close to the 2030 GBF target of protecting 30% of marine and coastal areas. Areas with management effectiveness evaluations cover about 10% of the EEZ.
This section shows selected policy instruments based on data available for most OECD countries and does not provide a complete overview of countries’ policy mix to achieve their environment-related objectives. Interpretation should consider the country specific context.
Environment-related taxes are an important source of fiscal revenue in Costa Rica, due to generally low revenues from income taxes and large informal employment. Their share in GDP, at about 2%, is above the OECD average. Most receipts come from the excise duty on fuels and, to a lesser extent, from vehicle taxes. Taxes on pollution and resource management mainly apply to wastewater discharges and water use, and generate limited revenues.
In total, 45.9% of GHG emissions in Costa Rica were subject to a positive Net Effective Carbon Rate3 (ECR) in 2023. Costa Rica does not levy an explicit carbon price. Fuel excise taxes, an implicit form of carbon pricing, covered 45.9% of emissions in 2023. About 40% of GHG emissions have a Net ECR above EUR 60 EUR per tonne of CO2 equivalent, a mid-range estimate of current carbon costs. Net ECRs are highest in the road transport sector, which accounts for 37.1% of the country’s total GHG emissions. The Net ECR is on average zero in the other GHG emissions sector, which accounts for 51.2% of GHG emissions (OECD, 2024[4]).
Costa Rica is a marginal player in the field of environment-related patents. Less than five innovations have been filed for protection in at least two jurisdictions by Costa Rican inventors during the period 2010-2022. No data is available on environmentally and energy related government research, development, and demonstration (RD&D) budget.
References
[3] CONARE (2022), Informe Estado de la Nación 2022, http://www.estadonacion.or.cr.
[2] Costa Rica (2024), Inventario Nacional de emisiones por fuentes y absorción por sumideros de Gases de Efecto Invernadero. Costa Rica, 1990-2021, https://unfccc.int/sites/default/files/resource/DIN%201990-2021%20%286%29.pdf.
[5] Hockings, M. and E. al (2006), Evaluating Effectiveness. A framework for assessing management effectiveness of protected areas. 2nd Edition, IUCN, https://portals.iucn.org/library/efiles/documents/PAG-014.pdf.
[4] OECD (2024), Pricing Greenhouse Gas Emissions 2024: Gearing Up to Bring Emissions Down, OECD Series on Carbon Pricing and Energy Taxation, OECD Publishing, Paris, https://doi.org/10.1787/b44c74e6-en.
[1] OECD (2022), OECD Economic Outlook, Volume 2022 Issue 1, https://doi.org/10.1787/62d0ca31-en.
Further reading
Central Bank of Costa Rica, "Environmental accounts", https://sdd.bccr.fi.cr/es/IndicadoresEconomicos/Inicio/Reporte/1327
Convention on Biological Diversity (CBD, 2022), “Country Profiles: Costa Rica”, https://www.cbd.int/countries/?country=cr
Convention on Biological Diversity, “Costa Rica 6th National Report for the Convention on Biological Diversity”, https://chm.cbd.int/database/record?documentID=246324
IEA, “Country profile: Costa Rica”, https://www.iea.org/countries/costa-rica
OECD (2023a), Environmental Performance Reviews: Costa Rica 2023, OECD Publishing, Paris, https://doi.org/10.1787/ec94fd4e-en
OECD (2017), OECD Tax Policy Reviews: Costa Rica 2017, OECD Tax Policy Reviews, OECD Publishing, Paris, https://doi.org/10.1787/9789264277724-en
OECD (2016), OECD Economic Surveys: Costa Rica 2016: Economic Assessment, OECD Publishing, Paris, http://dx.doi.org/10.1787/eco_surveys-cri-2016-en
National Institute of Statistics and Census, "SDG indicators", https://www.inec.cr/objetivos-de-desarrollo-sostenible
National Environmental Information System, www.sinia.go.cr
National Territorial Information System, https://www.snitcr.go.cr
National Environmental Information System, Report on the State of the Environment, http://sinia.go.cr/informedelestadoambiente/
UNEP (2019), “Green policy brief”, https://greenfiscalpolicy.org/policy_briefs/costa-rica-country-profile
UNEP-WCMC (2024), “Protected Area Profile for Costa Rica”, the World Database of Protected Areas, www.protectedplanet.net
UNFCCC, “Costa Rica 4th National Communication”, https://unfccc.int/sites/default/files/resource/CuartaComunicacionCC202_Costa%20Rica.pdf
World Bank, “Country profile: Costa Rica”, https://www.worldbank.org/en/country/costarica/overview
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← 1. In 2024, municipal waste data show a break in time series, due to a change in methodology enabling a more complete coverage of data.
← 2. Protected Area Management Effectiveness evaluations, can be defined as: “the assessment of how well protected areas are being managed – primarily the extent to which management is protecting values and achieving goals and objectives" (Hockings and al, 2006[5]).
← 3. Effective Carbon Rate (ECR) is the sum of fuel excise taxes, carbon taxes and tradeable permits that effectively put a price on carbon emissions. The Net ECR equals the ECR minus fossil fuel subsidies that decrease pre-tax fossil fuel prices.