The project «Aligning the Financial Flows of Costa Rican Financial Sector with the Climate Change Objectives of the Paris Agreement» was presented to support Costa Rica’s goal of achieving zero-emissions by 2050.
The project will create a framework to map, quantify, and disclose climate-related financial risks. These methodologies and tools will also be tested in the portfolios of banks and insurers to assess their exposure to these risks and define mitigation strategies. In this way, the Costa Rican financial sector will be provided with the necessary guidance structure to mobilize private capital towards a low-emissions and climate-resilient economy and to strengthen its capacity to adapt to the effects of climate change.
A significant private investment component will be necessary for Costa Rica to achieve net-zero emissions by 2050. Costa Rica’s taxonomy of sustainable finance seeks to guide private investment toward the required economic activities to achieve this goal. Costa Rican authorities will develop the taxonomy to provide standardized, science-based, and internationally harmonized criteria on which environmentally sustainable investments and economic activities can be considered.
The taxonomy aims to provide certainty to investors, prevent greenwashing, support the growth of national green financial markets, and increase the country’s attractiveness for international investors.