Environmental Services Payments Supported by Forestry Law 7575

Annex 8b: Eligibility Criteria for Beneficiaries and Environmental Service Contracts

Costa Rica: Ecomarkets

1. 
   Where there is high potential for concentration of plantation blocks, which may allow for industry development.
   
2. 
   Where there is availability, at the regional level, of areas without forest coverage due to neglect of agriculture and cattle rising.
   
3. 
   Where there are successful experiences from individual beneficiaries or organizations in establishing and managing forestry species.
   
4. 
   Where the management plan is located in areas with potential for forestry production:
   
   1. 
      Steeps up to 60%, as far as the effective deepness is equal or greater than 70 cm.
      
   2. 
      The areas subjected to management plan shall be located outside a protected area,
      
   3. 
      The species to be utilized shall have a good productive potential.
      

2.2 Criteria for the development of management plans for plantations established with own resources:

5. 
   Where there are established plantations that require management resources.
   
6. 
   Where there is a high potential of concentration of plantation blocks, which may allow for industry development.
   
7. 
   The evaluation of the plantation shows satisfactory results and potential for production.
   
8. 
   That the management plan is located in areas with potential for forestry production:
   
   1. 
      The areas subjected to management plan shall be located outside a protected area,
      
   2. 
      Plantations with blocks of at least 400 trees per hectare, in good shape and in good sanitary conditions], and with at least two years of age. Additionally, the owner shall guarantee the permanency of the plantation for all the payment period.
      

2.3 Criteria for the development of management plans for natural forests:

1. 
   Management of forested areas with or without intervention, with technical aptitude for exploitation, will be allowed.
   
2. 
   It is allowed to manage all forests under private ownership. In the case of wildlife areas protected by the State, the restrictions established for each management category shall prevail.
   
3. 
   The forests subjected to management, shall have productive potential measured through the following criteria:
   
   1. 
      For primary forests the basal area shall be equal or greater than 15 m², measured in trees with diameters at chest height equal or greater than 30 cm.
      
   2. 
      For secondary forests, the total number of tress per hectare shall be equal or greater than 60 measured in trees with diameters at chest height equal or greater than 15 cm.
      
4. 
   The principles, criteria and indicators for the sustainable management of forests (executive decree 27388-MINAE of Nov. 2, 1988) apply. In the case of secondary forests, Principle 11 of such regulation applies.
   

2.4 Criteria for prioritization of management plans for forest protection:

1. 
   The conservation easements located within the Biological Corridors identified in the Mesoamerican Biological Corridor GRUAS Report shall be priority.
   
2. 
   Forestry areas protecting water resources for human consumption, irrigation and hydroelectric production.
   
3. 
   Privately owned land located within wildlife refuges, protected areas and buffer zones.
   

1. 
   For established forestry plantations which have not received funds from property tax-break or forestry incentives, or under Article 87 of Forestry Law 7174, or Articles 29 and 30 of Forestry Law 7575, and reforestation management plans to be implemented, the minimum area for ESP is one hectare and maximum 300 hectares per year, per beneficiary per year.
   
2. 
   ESP for natural forest management, minimum area is two hectares and maximum is 300 hectares per year, per farm or group of adjacent farms or close within a five kilometers radius when owned by the same beneficiary.
   
3. 
   ESP for forestry protection, minimum area is two hectares and maximum of 300 hectares per year, per farm or group of adjacent farms when owned by the same beneficiary.
   
4. 
   For community-based reforestation and protection projects, the maximum area per producer will be up to 50 hectares.
   
5. 
   The maximum area for indigenous reserves per each ESP contract category is 600 hectares.
   

1. 
   Individually, for protection and management of natural forests and for established or to be established forestry plantations.
   
2. 
   Globally, through an organization of small or medium-size landowners: for the protection of natural forests and for forestry plantations to be established.
   

1. 
   To prevent and control forest fires.
   
2. 
   To prevent and support the control of illegal hunting.
   
3. 
   To prevent cutting and extraction of forestry products in areas declared as protected according Article 33 of the Forestry law nor in the areas that benefit from ESP under the protection alternative with the exception of specific instances according to Article 19 of the Forestry law.
   
4. 
   To assist the State’s Forestry Management (SFM) in research and education activities in areas under ESP contracts.
   
5. 
   To fulfill all commitments established in the Forestry law, its regulations and any other applicable norm.
   
6. 
   To follow all technical recommendations issued by SFM and the forestry inspector. These shall be appropriately justified in writing.
   
7. 
   To cede to FONAFIFO all rights derived from paid ESP contracts as long as the contract is in force.
   
8. 
   To attend contractual aspects regarding environmental services individual beneficiaries and organizations with MINAE and FONAFIFO shall register that accordingly.
   

5.2 Organizations:

1. 
   Must be regulated under the Associations Law, Centros Agricolas Cantonales Law and Cooperatives Law, and shall be legally established and with current legal representation inscribed in the corresponding registry.
   
2. 
   Must lack pending commitments with forestry projects, financing programs, incentives or credits provided by MINAE or any of its decentralized institutions. It is the responsibility of the corresponding Conservation Area to verify and to certify these requirements regarding CAFA, FDF and ESP contracts when it refers to global projects (reforestation or protection); and it is the responsibility of FONAFIFO regarding credits. The organization shall request this information to the Conservation Areas and to FONAFIFO before submitting the ESP contract request.
   
3. 
   Must have an organizational structure that allows enough administrative, accounting and technical capacity for directing and implementing projects. They shall have at least one full-time manager, an accountant and a forestry professional, the latter two working at least half time, transportation (at least a motorcycle), basic computer equipment and basic administrative and accounting manuals. An external auditor shall audit their procedures at least once a year. It is the responsibility of the Conservation Areas to verify and certify the fulfillment of these requirements previous to allowing the organization to manage a community project. The organization shall request this information to the Conservation Areas and to FONAFIFO before submitting the ESP contract request.
   
4. 
   Must commit to charge, as a maximum, 18% of the annual tranche for each beneficiary, for the technical services, preparation of studies or any other administrative cost for ESP in global reforestation and protection projects. The organization shall prove successful experience in forestry projects (reforestation and protection). This requirement does not apply to new organizations, but it does to its members, or full-time staff.
   
5. 
   Must have an exclusive account in any bank of the national banking system, to receive and distribute the resources from the ESP program.
   
6. 
   Must, before processing further requests, send to the appropriate Conservation Area and to FONAFIFO an annual externally audited report specifying the income received from ESP contracts, disbursements to beneficiaries, and the general use of the funds.
   
7. 
   Follow up all commitments established in the contract with the State.