The Fondo Nacional de Financiamiento Forestal, through the Trust 544-Banco Nacional de Costa Rica-Fondo Nacional de Financiamiento Forestal (Fideicomiso 544-Banco Nacional de Costa Rica-Fondo Nacional de Financiamiento Forestal), shall be responsible for its custody and administration. It may also be nourished by additional contributions, donations, or cooperation from national or international natural or legal persons, through agreements, contracts, or conventions in which the conditions of these contributions are established.
1. Inclusive Fund for Sustainable Development (FOINDES) The Inclusive Fund for Sustainable Development (FOINDES) is established, composed of ten percent (10%) of the resources received by the Fondo Nacional de Financiamiento Forestal, resulting from the sale of greenhouse gas emission reductions, agreed with the Banco de Reconstrucción y Fomento.
The objective of this fund is to serve as an instrument that allows natural persons, especially women, owners, co-owners, or possessors of forest or without it, to have a financial means that allows them, through various instruments, to establish or improve their small enterprises, which contribute to the fight against climate change and the conservation of biodiversity linked to productive landscapes and agriculture, improving their productive and social condition.
The area of influence of these projects shall be the entire country. Up to 10% of the Fund's resources shall be used as seed capital for a mechanism that will help guarantee or leverage credits or other mechanisms, to establish or improve small enterprises. 10% shall be used for seed capital and non-reimbursable support or risk capital, to provide formalization processes, for highly targeted studies for the proposed activities, or for compliance with requirements for the regularization and formalization of activities under a legality scheme. The remaining 80% shall be dedicated to the provision of small loans to establish or improve productive projects that influence the fight against climate change or biodiversity conservation.
These activities may include, among others, the following activities:
a. Agroforestry or silvopastoral systems.
b. Organic agricultural production without agrochemicals or artificial fertilizers, or with novel mechanisms.
c. Financing to opt for certification processes for organic or agrochemical-free production.
d. Financing of projects that promote environmental education for all sectors of society.
e. Food production, production in nurseries of medicinal plants, or honey production based on the flowering of species present in an environment protected for that purpose.
f. Production of medical articles, or personal care articles from small industrial processes, and processed foods.
g. Ecotourism activities related to forests and other natural ecosystems.
h. Commercial reforestation and/or reforestation for restoration (restauración) purposes, establishment of forest nurseries, ornamental or medicinal plant nurseries, or home gardens.
i. Reforestation of commercial and/or native species for connectivity purposes of the forest cover (cobertura boscosa) between two or more points. (combatting landscape fragmentation) j. Forest harvesting (Aprovechamiento forestal) and industrialization of wood, preferably with novel and minimally invasive mechanisms, and their commercialization processes.
k. Manufacture of wooden furniture, wooden accessories, and crafts related to the construction sector.
l. Manufacture of tourist souvenirs, all made with a by-product of the forest or a natural resource.
m. Production, commercialization, and sale of non-timber forest products (productos no maderables del bosque).
n. Others not expressly established but related to the objectives of maintaining and recovering forest cover.
o. Purchase of balances granted by other financial organizations to transfer credit operations to FOINDES at a lower rate and for an equal or longer term.
p. Financing formalization processes for enterprises and capacity-building processes.
q. Financing processes for updating, segregating, or deed-recording farms, encompassing the cadastral and legal component necessary for the properties to comply with the registry and national cadastre law of Costa Rica.
These activities shall be directed and supervised by the Fondo Nacional de Financiamiento Forestal (Fonafifo), which has an administrative structure and personnel specialized in Forest Promotion (Fomento Forestal), with the support of its Trust 544-Banco Nacional de Costa Rica-Fondo Nacional de Financiamiento Forestal, which shall be the administrator of the financial resources resulting from the sale of emission reductions, for as long as required. For this purpose, the Fundación Banco Ambiental (FUNBAM) shall transfer the resources to said Trust.
The resources directed or allocated to the Leveraging Fund or Guarantee Fund shall be maintained independently in the Fundación Banco Ambiental, with independent management from Fonafifo or Trust 544.
Fonafifo and the structures of the Trust shall establish, regulate, and govern the necessary elements to operate this fund, such as requirements, interest types, terms, and promotion mechanisms.
2. Green Development Fund (FDV) The Green Development Fund (FDV) is established, composed of ten percent (10%) of the resources received by the Sistema Nacional de Áreas de Conservación (SINAC), resulting from the sale of greenhouse gas emission reductions, agreed with the Banco de Reconstrucción y Fomento (Banco Mundial).
The objective of this fund is to serve as an instrument that allows natural or legal persons or organizations, owners, co-owners, or possessors of forest or without it, to have a mechanism that allows them, through various instruments, to improve their enterprises, which contribute to the fight against climate change and biodiversity conservation, improving their productive and social condition.
The area of influence of these projects shall be the entire country; however, priority shall be given to those located in areas defined as biological corridors, projects within or near Protected Wild Areas (Áreas Silvestres Protegidas).
Up to 10% of the Fund's resources shall be used as seed capital for a mechanism that will help guarantee or leverage credits or other mechanisms, to improve or expand enterprises. The remaining 90% shall be dedicated to the provision of loans to improve or expand productive projects that influence the fight against climate change or biodiversity conservation.
These activities may include, among others, the following activities:
a. Agroforestry and silvopastoral systems.
b. Organic agricultural production without agrochemicals or artificial fertilizers, or with novel mechanisms.
c. Food, medical, or personal care article production, or small industrial processes of processed foods.
d. Ecotourism activities related to forests and other natural ecosystems.
e. Reforestation, establishment of nurseries.
f. Forest harvesting and industrialization of wood, preferably with novel and minimally invasive mechanisms.
g. Manufacture of wooden furniture and crafts.
h. Manufacture of tourist souvenirs.
i. Commercialization processes for the products derived from these.
j. Alternative means of electricity generation for already established enterprises.
k. Others not expressly established but related to the objectives.
These activities shall be directed and supervised by the Fondo Nacional de Financiamiento Forestal (Fonafifo), which has an administrative structure and personnel specialized in Forest Promotion, with the support of its Trust 544-Banco Nacional de Costa Rica-Fondo Nacional de Financiamiento Forestal, which shall be the administrator of the financial resources resulting from the sale of emission reductions, for as long as required. For this purpose, the Fundación Banco Ambiental (FUNBAM) shall transfer the resources to said Trust.
The resources directed or allocated to the Leveraging Fund or Guarantee Fund shall be maintained independently in the Fundación Banco Ambiental, with independent management from Fonafifo or Trust 544.
In this Fund, SINAC may participate in coordination with Fonafifo and Trust 544-BNCR-FONAFIFO, undertaking recruitment, offering and collaborating in credit processes, channeling these, and facilitating financing, activity control, and compliance processes.
Fonafifo and the structures of the Trust shall establish, regulate, and govern the necessary elements to operate this fund, such as requirements, interest types, terms, and promotion mechanisms.
(Thus added by Article 2 of Decreto Ejecutivo N° 44607 of July 30, 2024)