Costa Rica and World Bank pioneer Marine Environmental Payments to protect mangroves and coastal livelihoods

San José, Costa Rica, June 5th 2025 – Long celebrated for its environmental leadership, Costa Rica is charting new territory with the launch of its first marine Payment for Environmental Services (PES) pilot, focusing on mangrove ecosystems in the Gulf of Nicoya, along the Pacific coast. The initiative extends the country’s results-based finance mechanisms from terrestrial to coastal and marine ecosystems.

For over two decades, Costa Rica has pioneered PES schemes that reward landowners for conserving forests, contributing to forest recovery and carbon sequestration. Today, with support from the World Bank and funds provided through the Earthshot Prize, the country is piloting a marine PES model tailored to the unique ecological and socioeconomic characteristics of mangrove forests, critical coastal habitats that provide biodiversity, fisheries, and climate resilience benefits.

"We are committed to leverage the experience gained from financing environmental services in forests and plantations to marine ecosystems. Our goal is to support the conservation and sustainable use of critical marine-coastal ecosystems and their biodiversity; while recognizing the role of coastal communities whose livelihoods depend on these resources and who are therefore their primary stewards," said Franz Tattenbach, Costa Rican Minister of Environment and Energy.

A multi-stakeholder effort

At the heart of Costa Rica’s new marine environmental payments pilot lies a collective effort. The Ministry of Environment and Energy (MINAE), the National System of Conservation Areas (SINAC), the National Forestry Financing Fund (FONAFIFO), the Costa Rican Institute of Fisheries and Aquaculture (INCOPESCA), and the Environmental Bank Foundation (FUNBAM) came together to formalize the initiative through a multi-institutional Cooperation Agreement.

This agreement, supported by Executive Decree No. 44558-MINAE, lays the legal and institutional foundation for recognizing and compensating sustainable practices in mangrove ecosystems. Specifically, it enables payments to rural community groups engaged in regulated mollusk harvesting and whose daily work sustains both their livelihoods and the health of the mangroves they depend on.  

By formally acknowledging their role, the pilot reinforces the position of these communities as frontline guardians of coastal ecosystems while providing them with meaningful financial support to sustain their livelihoods.

To strengthen institutional frameworks and empower community capacities, the pilot initiative includes the development of a comprehensive Manual of Operations. This manual outlines every detail related to economic recognition mechanisms and introduces the appointment of dedicated biological field staff to ensure technical oversight and alignment with national biodiversity. A robust governance structure, anchored by the Inter-institutional Coordination Commission, guarantees seamless collaboration, continuous monitoring, and a high standard of accountability and transparency throughout implementation.

Community engagement

The pilot includes six community associations representing 157 local mollusk gatherers in key mangrove areas across Nicoya, including Corozal, Jicaral, Puerto Pochote, Puerto Jesús, Puerto Thiel, San Pablo, and Isla Chira. Together, they manage over 6,000 hectares of mangrove forest.

Participants receive an annual payment of USD 2,698.85, distributed quarterly and tied to verified compliance with conservation activities. These include mollusk aquaculture and restocking, ecosystem monitoring, surveillance against illegal activities, and sustainable harvesting practices aligned with approved management plans. This amount roughly represents two and a half times what participants typically receive as income from their work, making it a meaningful incentive that supports both conservation and their livelihoods.

Each participating association signs an annual contract, with the possibility of renewal based on performance and available resources.

Toward a scalable national program

This pilot marks a pivotal step in Costa Rica’s journey to build a nationwide marine environmental payments program, one that not only advances environmental innovation but also responds to today’s urgent global challenges of inequality and economic vulnerability. By directly linking conservation with income generation, it offers a scalable model for creating dignified jobs, strengthening local economies, and positioning coastal communities as essential partners in building resilient, inclusive development pathways.

By tailoring PES to marine contexts, Costa Rica is demonstrating how blue carbon ecosystems like mangroves can be leveraged to create sustainable livelihoods and job opportunities for disadvantaged communities. This approach not only supports environmental conservation but also fosters economic development by empowering local populations to engage in activities that enhance their well-being and financial stability. 

At its core, the program recognizes and rewards the everyday efforts of coastal communities whose sustainable practices protect vital ecosystems. With dedicated funding mechanisms and a clear operational framework, the pilot lays the groundwork for long-term support and replication.

 "The country has strategically embraced the challenge of advancing towards a sustainable development model, establishing conditions for a globally pioneering program. Despite complexities, it has built a solid collaboration between institutions, sectors, and communities to implement a recognition scheme that benefits those dependent on the sea, promoting sustainable use of marine resources. This proposal highlights our commitment to ocean conservation, environmental justice, and people's well-being," mentioned Jorge Mario Rodríguez, Costa Rican Vice Minister of Environment."

World Bank expertise

Behind Costa Rica’s bold step into marine environmental payments is a trusted partner with decades of experience: The World Bank. Building on its long-standing support for results-based climate finance, including through initiatives like the Forest Carbon Partnership Facility (FCPF), the Bank is helping shape the institutional and operational frameworks of this new marine PES model. The institution is not just offering technical guidance, it’s helping Costa Rica turn vision into action, scaling up innovation and anchoring sustainability in policy and practice.

“At the World Bank, we are proud to accompany Costa Rica in this pioneering effort to extend the Payment for Environmental Services model to marine ecosystems. This pilot not only builds on the country’s global leadership in environmental innovation but also places the stewardship and knowledge of coastal communities at the heart of the solution. It is a powerful example of how inclusive climate action can deliver both environmental and social impact,” said Carine Clert, World Bank Country Manager for El Salvador and Costa Rica.