Anyone who has done basic research on Costa Rica knows that the country is a world leader in the green revolution.  With over 25% of the land preserved and 95% of the electricity produced with renewable resources, this famously peaceful democracy has been recently voted the “greenest and happiest” nation on Earth by the independent organization New Economics Foundation.  As a politically and economically stable “developing” country, Costa Rica may be one of the safest and most opportune countries to invest in.

Costa Rica’s government, committed to becoming carbon neutral by 2021, has launched very attractive incentives for sustainable development projects.   These incentives have spawned many green investment opportunities into fields like forestry, renewable energy generation, biofuel production, sustainable building, landfill biomass extraction, and many more.

Reforestation Investments

Reforestation and sustainable timber has long been a focus in Costa Rica.  Investing in such projects has provided incentives for residency, and now monetary compensation is available from the Costa Rican government.  A forest preservation project may receive up to $300 per year, per hectare; and a reforestation project is eligible for $150 per year, per hectare.  The legal process to qualify for these credits costs around $5,000 and takes less than 4 months to complete.

In addition, many private forestry and reforestation projects are producing certified emission reduction (CER) credits, also known as carbon offset credits.  The Costa Rica government also engages in this practice for its vast forest reserves.  These projects are offering wholesale investments into their programs, and then selling the carbon offsets credits on the open markets for very healthy returns for their investors.

Wind Power Development

Until recently, the government-run monopoly I.C.E (Institute of Costa Rican Electricity) made it very difficult for private developers to produce electricity.  Since the ratification of CAFTA (Central American Free Trade Agreement), Costa Rica has already deregulated telecommunications and is now planning to open the electricity market.  New incentives are being offered to developers to build renewable energy plants of 7 megawatts or larger.  Once their plans are approved, developers will be able to import all necessary materials “duty free,” and may be exempt from paying operating taxes for a period of time.  These projects are also eligible for creating certified carbon offset credits with substantial value, thus making them even more attractive to investors and developers.

Geothermal Power Plants

The production of biofuels is yet another industry where Costa Rica is providing similar tax-based incentives to entrepreneurs.  Biodiesel production is expected to be the leading biofuel, as the country produces a large supply of palm oil.  Jatropha, a new high-yielding oil crop, is being grown and studied in Costa Rica for future use in biodiesel production.  Additionally, sugar-based ethanol production is incentivized as well and has great potential.

Finally, revolutionary methane extraction techniques are being developed for landfills, along with garbage reduction and recycling technology that offers another exciting opportunity for green development in Costa Rica.  One firm has applied for permissions to implement such a plan for some Costa Rica landfills.  This technique reduces actual landfill garbage by 90%, removes all recyclable materials, and produces fuel pellets that can be used for electricity production, while creating valuable carbon offset credits.

With the prospect of Cap and Trade legislation being passed in the United States and a president who is pushing G-8 members to sign on to reduce global carbon emissions, these green development projects appear to be solid investments with terrific potential for high yields.  These environmentally friendly projects, when executed responsibly, represent the emerging concept of Conscious Capitalism.

Email us for more information about specific investment opportunities:  ParadiseProfits@gmail.com