Japan to extend RE loans to Costa Rica

Loans to help Costa Rica become carbon neutral by 2021.

The Japan Bank for International Cooperation will provide US$100 million for Costa Rican state banks to finance environmental projects to enable the country achieve its goal of being carbon neutral by 2021.

The Costa Rican Ministry of Environment and Energy said that the goal is to use these resources to develop projects related to renewable energy and sustainable transport.

The National Bank and State Bank of Costa Rica will be responsible for allocation of credits. The agreement with JBIC stipulates that these loans must have lower interest rates in order to promote projects that make a difference in the Central American country’s energy consumption.

These funds will enable Costa Rica to finance the change of the fleets of taxis and public transport buses as well as renewable energy projects, including solar panels, wind farms, hydroelectric plants, among other technologies to move towards carbon neutrality.

Costa Rica’s ambassador to Japan, Alvaro Cedeño, said that deals like this are the result of years of work in search of “green growth bilateral agreements” and that “the goal Costa Rica expose their strengths and green country, is linked with the strengths of a country like Japan, and lay the groundwork for what will be the next 25 years of bilateral relations this matter.”