The Social Meaning of Carbon Dioxide Emission Trading Institutional Capacity Building for a Green Market in Costa Rica

Forests offer good possibilities for the sequestration of carbon dioxide. This service can be commodified by the introduction of carbon (dioxide) credits, which can be traded on a carbon market. The premise of this paper is that the traditional economic view on the construction of these carbon markets is a too simplistic one, particularly, because it neglects the social meaning of a carbon market for developing countries. From their viewpoint as suppliers of carbon credits such a market has a broader meaning. It must be seen as a social mechanism for improving both the living conditions of local people and a more encompassing improvement of the environment than climate as such. What initially might be labelled as a carbon market might better be understood as a more encompassing 'green market'. The agreement between Costa Rica and Norway, officially known as the Reforestation Conservation Activities Implemented Jointly Project (RFCAIJP) represents a clear example of a green market. In this paper, we study the development, characteristics and benefits of that market, asking the question what lessons can be learned from this first practical experiences. More specifically we focus on the conditions that have made this type of agreement successful.