Costa Rica: Certified Tradable Offsets
This program allows local producers to "grow" carbon, or to exploit the rainforest’s ability to absorb carbon gases, as a commodity for sale internationally. Each CTO corresponds to one ton of carbon absorbed by Costa Rica’s trees. The aim is that industrialized countries will eventually use these CTOs against their Kyoto emission limitations. For now Costa Rica has found foreign investors willing to purchase them - Norwegian hydropower companies have purchased these CTOs for $10/ton of carbon, much lower than the supposed cost of abatement at home. The US has also purchased CTOs related to Costa Rica’s Protected Areas Project. Sales of CTOs will be handled by the Chicago Board of Trade. The proceeds are used to purchase rainforest land from private owners for preservation.
Date Implemented: 1998
Status: In Force; Voluntary
Targets: This program aims to protect 1.25 million acres (500,000 ha) of rainforest
References: http://forests.org/archive/samerica/crcarbcr.htm http://www.forest-trends.org/documents/misc/CarbonCommodity.pdf