Decree N° 37.926/MINAE - Guidelines for the regulation and operation of the domestic carbon market [Decreto N° 37.926/MINAE - Reglamento de regulación y operación del mercado doméstico de carbono]

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Decree No. 37.926/MINAE approves guidelines for regulating and operating the domestic carbon market, aiming to establish and define requirements for Costa Rica's Domestic Carbon Market [Mercado Doméstico de Carbono (MDC)].
This market serves as a tool to support the country's efforts towards achieving carbon neutrality goals by facilitating the commercialisation of carbon credits generated from projects or activities aimed at reducing greenhouse gas emissions. The MDC operates as a voluntary mechanism for generating carbon credits at the local level through Costa Rican Compensation Units [Unidades Costarricenses de Compensación (UCC)].
Project Types:
- Independent projects: For sectors without a registered protocol or developers opting out of protocol participation, projects can be independently registered using an approved or accepted methodology by the MDC.
- Project protocol for national interest activities: In sectors of national interest, the Carbon Board, based on an approved or accepted methodology by the MDC, collaborates with other public or private institutions as deemed necessary to design and register a protocol for projects.
The decree includes the sector that are considered to generate UCC, among these are:
- Forestry: Reforestation, forest management, and forest conservation.
- Energy: New renewable energy sources and energy efficiency on the demand side.
- Other Sectors: UCCs from other sectors can be assessed by the Carbon Board through the development of methodologies and protocols, including calculation and sizing effects of the market, and scenarios demonstrating the quality and competitiveness of UCCs against designated sectors.
Further Considerations:
- A project registry is established to record basic data of each project participating in the MDC, necessary for project and UCC traceability, managed by the Technical Secretariat.
- To mitigate risks associated with Protocol-Embedded Activities (PEA), a reserve account managed by the Carbon Board or the protocol developer, authorised by the Carbon Board, is created. It retains a predetermined percentage of UCCs from each activity to cover performance risks, leakage, or other environmental integrity considerations.
- Carbon experts [peritos de carbono] are responsible for validating projects for inclusion in the MDC, as well as verifying project implementation and monitoring plans. To be accredited by the MDC, professionals must demonstrate expertise in fields related to the project type, and pass the corresponding carbon expert training course.

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Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

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Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A long-lived, colourless gas, chiefly emitted from fossil fuel combustion, deforestation and cement production.

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Activities that involve the cultivation of crops and raising of livestock for food, fibre, and other products essential for human life and industry.

Tradable permits are market-based tools that grant permission for specific activities, frequently used to regulate emissions. These permits can be issued within a trading system to manage environmental impacts.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

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Compulsory, required payments to the government that are levied more-or-less in proportion to the services provided. Fees and charges range from entrance fees to national parks, charges on land-based sewage discharge.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

This sector creates and distributes information and entertainment through television, radio, print, and digital platforms.

Actions and measures to adapt and increase resilience of societies and the economy to climate change.

Activities that relate to the production of goods and services from forests.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

The release of heat-trapping gases, primarily from human activities such as burning fossil fuels, agriculture and industry.

Decree N° 37.926/MINAE - Guidelines for the regulation and operation of the domestic carbon market [Decreto N° 37.926/MINAE - Reglamento de regulación y operación del mercado doméstico de carbono]

Target

Policy instrument

Impacted group

Renewable energy

Greenhouse gas

Economic sector

Adaptation/resilience

Finance