What Happened

Costa Rica has bucked the global trend of tropical deforestation, transforming from one of the world’s highest deforestation rates in the late 20th century to a model of forest recovery. The Central American nation, roughly the size of West Virginia, was losing more than 100,000 acres of forest annually and had seen its forest cover plummet from approximately 75% to less than 25% by 1985.

Today, forests cover more than half of Costa Rica’s territory—a dramatic reversal achieved through a combination of policy changes, economic incentives, and shifting agricultural practices. This success story stands in stark contrast to global trends, where the tropics lost a record 16.6 million acres of primary forest in 2024, with more than half occurring in Brazil and Bolivia due to fires and agricultural expansion.

Why It Matters

Costa Rica’s forest recovery demonstrates that rapid environmental degradation can be reversed through coordinated policy action, offering hope and practical lessons for other nations facing similar challenges. The country’s success is particularly significant because it occurred while maintaining economic growth, challenging the assumption that environmental protection requires sacrificing development.

The recovery has yielded measurable benefits beyond forest cover: improved biodiversity, enhanced carbon sequestration, better watershed protection, and increased ecotourism revenue. These outcomes provide evidence that forest restoration can generate economic returns while addressing climate change—a critical consideration as countries worldwide grapple with balancing development needs against environmental commitments.

Background

Costa Rica’s deforestation crisis peaked in the 1970s and 1980s, driven by cattle ranching, agriculture, and logging. The rapid forest loss threatened the country’s renowned biodiversity and raised concerns about long-term environmental and economic sustainability.

The transformation began through several key policy interventions implemented starting in the 1990s:

• Payments for Ecosystem Services (PES): Costa Rica became a pioneer in compensating landowners for maintaining forests, recognizing services like carbon storage, watershed protection, and biodiversity conservation.
• Logging restrictions: Stricter regulations on timber harvesting reduced pressure on existing forests.
• Reforestation incentives: Tax breaks and direct payments encouraged landowners to replant trees on degraded land.
• Protected area expansion: The country significantly expanded its national park system and biological reserves.
• Sustainable tourism development: Ecotourism created economic incentives for forest conservation while generating jobs and foreign currency.

These policies were supported by international funding, including debt-for-nature swaps and carbon credit programs, which provided financial resources for conservation efforts.

What’s Next

Costa Rica’s success has influenced forest policy discussions globally, with other countries studying its Payment for Ecosystem Services model and comprehensive approach to forest governance. However, the model’s transferability faces challenges, including the need for stable institutions, adequate funding mechanisms, and political commitment.

The country now faces new challenges in maintaining its forest gains, including pressure from urban development, infrastructure projects, and climate change impacts. Costa Rica has committed to achieving carbon neutrality and is working to expand its forest cover further while developing sustainable economic activities that depend on healthy ecosystems.

For the global community, Costa Rica’s experience provides evidence that forest loss is not inevitable and offers practical policy tools for countries seeking to reverse deforestation trends. The success story comes at a crucial time, as tropical forests face mounting pressure from agriculture, mining, and climate change worldwide.

Key Takeaways

• Costa Rica reversed deforestation from 100,000+ acres lost annually to achieving over 50% forest cover today
• Success came through comprehensive policy reforms including payments for ecosystem services, logging restrictions, and reforestation incentives
• The transformation occurred while maintaining economic growth, challenging development-versus-environment assumptions
• Recovery generated measurable benefits including improved biodiversity, carbon sequestration, and ecotourism revenue
• Costa Rica’s model influences global forest policy discussions but faces transferability challenges
• Success demonstrates that rapid environmental degradation can be reversed with coordinated political action and adequate funding