Costa Rica News – Costa Rica launches unique environmental bank called BANCO2, this week to begin trading and qualifying carbon market credits.
The new environmental bank, BANCO2 opened in Costa Rica this week. BANCO2 is the first of its type in the world. This bank does not doesn’t trade or lend money, Carbon Credits.
BANCO2 is a brokerage services for carbon dioxide credits, as well as verification and qualifying reduction projects of CO2. This project is of the Costa Rica’s goal to reach to be carbon neutrality by 2021.
How the Carbon Market will Work
In a carbon market, qualified participants who reduce their carbon footprint are able to sell those credits through the Banco2 exchange to a company seeking to offset their own carbon dioxide footprint. BANCO2 has an exchange’s price on carbon of $5 per ton.
As well the Banco2 offers incentive programs, for example households can apply for energy and water efficiency improvements for reduced interest rates up to $5,000.
Costa Rica is struggling to reach its carbon neutrality goal vehicle ownership soon hit a 1:1 car-to-person ratio which will expand the country’s carbon footprint faster than programs can neutralize these footprints.
Other carbon markets around the world use a cap-and-trade strategy, but Costa Rica’s market is solely voluntary. The fact that no businesses are required by law to reduce their CO2 footprint poses a problem for the program.
This new carbon market bank is a step forward Costa Rica preparing for when carbon emissions limits are mandatory under the law.
Costa Rica News Site