Costa Rica: Leadership in Renewable Energy and Sustainable Development

Costa Rica is one of the only prominent and currently leading country in Central America and in the world now in the field of renewable energy, but it may be strange and surprising to many energy specialists and generally interested in the reality of climate change, as well as sustainable development by saying that Costa Rica, a country located in the far west of the globe, is striving flexibly and steadily to be a pivotal model in adopting projects with tangible momentum in the field of renewable energy.

At a time when geopolitical and geo-economic crises and conflicts are ravaging the current international system from all sides, we find a positive glimpse of a better future through Costa Rica’s tireless efforts to adapt natural resources to serve the requirements of its internal national interest.

Perhaps this will lead many to wonder how all this has been achieved in Costa Rica.

San José has embraced renewable energy as part of its commitment to environmental sustainability and reducing carbon emissions in line with the international community’s commitments to climate issues, as well as exploiting its natural resources.

The Costa Rican Government has made great strides in implementing renewable energy technologies and diversifying its energy sources.

Hydropower dominates Costa Rica’s energy landscape, accounting for 78% of electricity production, followed by wind, geothermal energy, biomass and solar energy.

Renewable energy provided 99.78% of the country’s energy production in 2020.

Costa Rica intends to achieve and maintain 100% renewable energy generation by 2030.

San José’s tremendous achievements in renewable energy make it a beacon of hope for all countries that are currently moving heavily towards green hydrogen markets, exploiting their diverse natural resources and resources.

Costa Rica’s commitment to renewable energy can be noted as driven by several factors:

1- Abundance of natural resources:

Costa Rica has abundant natural resources, such as rainfall and multiple rivers, that enable it to easily produce and generate hydroelectric power.

In addition, Costa Rica’s volcanic regions provide geothermal energy, and its wind and sun offer the possibility of producing wind and solar energy.

2- Environmental concerns:

Costa Rica is a small country with a population of less than 5 million, making it easier to ignite and drive efforts to commit to renewable energy.

The country is known for its environmental efforts, such as recycling, which contribute to its reputation as a “green” country.

3- Economic Benefits:

Costa Rica’s dependence on renewable energy has economic benefits, such as reduced dependence on fossil fuels and the possibility of generating and selling surplus energy to neighbouring countries. By 2019, Costa Rica had generated more than $180 million in excess energy sales.

Therefore, we can infer the keenness of the political leadership in Costa Rica to abide by the terms of the Paris climate agreement, which was reaffirmed at the COP27 and COP28 summits regarding reducing dependence on fossil fuels and reducing carbon dioxide emissions, with an emphasis on taking into account the financing dimension to address these climate issues.

At the same time, as a result of adhering to climate rules, Costa Rica has been able to reap many economic benefits, and will continue to do so until it becomes a leading renewable energy hub regionally and globally.

4- Government Support:

The San José government has adopted ambitious renewable energy targets and implemented policies and regulations to support the growth of the renewable energy sector.

For example, the country has eliminated its military spending and reallocated its military expenditures to the construction of hydropower facilities and the expansion of infrastructure in rural areas.

But, did you know that Costa Rica is also pursuing a more ambitious goal, which is to become the world’s first carbon-neutral country by 2050?

Yes, it’s the truth.. In 2018, Costa Rica launched a national plan for development and public investment, entitled “Costa Rica: a Carbon Neutral Country”, which includes 10 strategic axes, including transport, industry, agriculture, forestry, waste, water, energy, infrastructure, education, health, tourism and others.

The plan aims to transform Costa Rica into a developed, renewable, diversified, solidarity-based and low-emission nation, taking advantage of the economic, social and environmental opportunities offered by renewable energy and sustainable development.

Costa Rica is a role model in the world, not only in the area of renewable energy, but also in the protection of the environment, biodiversity, human rights, democracy and peace.

Costa Rica enjoys international support and recognition, having received the UNEP Champion of the Earth Award in 2019, the Ambition Award from the New York Climate Summit in 2019, and the Friends of the Earth Award in 2020.

In doing so, Costa Rica proves that it is a small State, but large in its will, vision and achievements, capable of defying adversity and overcoming obstacles, and that it is an inspiration to the entire world in its relentless quest for a better future.

Despite the country’s commitment to renewable energy, Costa Rica also faces some challenges and risks, such as weather fluctuations, natural disasters, and social and political problems.

In this context, Costa Rica’s experience in renewable energy and sustainable development can be a source of inspiration and learning for Arab countries, which have great natural, human and economic potential, but also suffer from many problems, conflicts and mutual threats in a turbulent international order between China, the United States of America, Russia and the European Union.

Can Arab countries apply Costa Rica’s experience in the field of renewable energy? What are the conditions, requirements and recommendations for this? These are important questions that deserve research and discussion, but in general, we can say that Arab countries in general need to:

● Adopting a clear and ambitious strategic financing vision for renewable energy and sustainable development, in line with the sustainable development goals and the Paris Climate Agreement, and taking into account Arab specificity, diversity and integration.

● Strengthening policies, systems, institutions and mechanisms that support renewable energy and sustainable development, such as encouraging investments, projects, partnerships and initiatives related to renewable energy, reducing dependence on fossil fuels and government support for them, and improving energy and resource efficiency through the expansion of the establishment of solar and wind power plants as adopted by the Egyptian state in Vision 2030.

● Developing capacities, skills, knowledge, innovation and technology in the field of renewable energy and sustainable development, such as promoting education, research and development, training, awareness-raising, exchange and scientific and technical cooperation in this field.

● Strengthening regional and international solidarity, cooperation and integration in the field of renewable energy and sustainable development, such as coordinating policies, plans, programs, projects and joint initiatives among Arab countries and with international partners in this field, to diversify the economies of Arab countries.

With these steps, Arab countries can benefit from Costa Rica’s experience in renewable energy and sustainable development, and contribute to building a better future for their people by improving living standards and reducing unemployment.

There are several factors that enable specific Arab countries such as Saudi Arabia, the UAE and Egypt as a result of the similarity in many environmental and geographical factors that make them strongly qualified to invest and benefit from the field of renewable energy, including:

● They receive high sunlight for long periods of the year.

● They enjoy large areas of desert land that are suitable for the construction of solar power plants.

● The presence of long coastlines on the Arabian Gulf and the Red Sea suitable for the construction of wind power plants.

By contrast, these three countries differ in the level of foreign investment in renewable energy, with the UAE witnessing a massive expansion in this regard, strongly represented by Abu Dhabi’s Future Energy efforts (Masdar), which is one of the fastest growing renewable energy companies in the world, not to mention the UAE’s Masdar City as a unique model for sustainable cities.

In conclusion, we emphasize that the structure of the international order is increasingly changing, and that the Middle Powers have played a prominent role in it in one way or another on various continents of the world in recent years.

It is no surprise or coincidence to say that regional politics has become shaped and determined by these regional centrist powers amid existing tensions and great-power policies over influence and hegemony.

Therefore, the gain of momentum for renewable energy can be justified by a high awareness of its importance as a decisive factor in energy markets and the shaping of future foreign policies, just as the same value that non-renewable energy resources represent in global politics.