The measurement, control and reduction of greenhouse gas (GHG) emissions is not only a good environmental strategy, but also a good business strategy. According to economic theory, GHG emissions are a negative externality, that is, an indirect and unwanted effect of production or consumption processes that, in some way, generate a cost for society and future generations. But these emissions can often be reduced, removed or avoided, making processes more efficient through technological improvements, changes in consumption patterns and optimization of the use of resources. Costa Rica has been a pioneer in developing, at the government level, a Country Carbon Neutrality Program, made official in 2012. This public policy seeks to encourage public and private organizations to measure their GHG emissions inventories, develop strategies to reduce or remove them and offset the emissions that they cannot reduce or remove, thus generating a domestic carbon market.

The systems for monitoring, reporting and verifying inventory measurements and reduction and / or removal activities must be carried out in a standardized and systematic way, based on the national carbon-neutrality standard (Standard Inte 12-01-06 : 2011). When conducting inventories, organizations must identify the sources of GHG emissions and develop an information management system that periodically collects data regarding the emissions generated. Standardizing this process also makes the information reported more consistent, transparent and understandable, thus simplifying the monitoring and comparison of trends over time. When an organization develops this knowledge, it is able to have more control of its emissions, in favor of the environment, and, also, more control of its entire production process, being able to make better decisions to reduce costs, awakening more trust among its customers and accessing to new business opportunities.

Organizations should not confuse the management of GHG emissions with a decrease in their level of operation. The key is to be more efficient, not less productive. Therefore, it is important to develop a performance indicator that measures emissions per unit of production. Once the inventory of GHG emissions has been measured and the strategies for their reduction defined, the organization can obtain the carbon-neutral country mark if it compensates for the remaining balance of its emissions. The compensation implies the acquisition of Costa Rican compensation units in the domestic carbon market, as established by decree No. 37926-Minae. Such units are credits generated by projects or activities aimed at supporting the reduction of greenhouse gas emissions. Through the commercialization of these credits, project developers obtain an income from organizations that seek to offset their emissions. And, thus, the domestic carbon market generates a system of incentives so that more initiatives are developed in the country that help reduce the ecological footprint.

On a temporary basis, the National Forest Financing Fund is the only institution authorized to generate Costa Rican compensation units. As of August 2014, that institution has commercialized 22,543.87 tons of carbon from forestry projects. The country has advanced a lot in the process of establishing the rules that will allow the participation of other actors in the domestic carbon market, which will already be possible in the coming months.

The director and executive body of the aforementioned market is the Carbon Board, which must define and guarantee compliance with the criteria and procedures established for projects that generate Costa Rican compensation units. As the domestic carbon market matures and strengthens, organizations, depending on their nature, capacity to reduce GHG emissions and business strategy, may choose to participate in it as demanders or suppliers of Costa Rican compensation units. The Costa Rican carbon market is a highly innovative public policy, which is unprecedented at the international level, given its governmental nature. With this initiative, Costa Rica is demonstrating once again that it is possible to reconcile proper environmental management with improving the levels of competitiveness of companies in its territory. The goal is that, in a short term, both the country and the participating companies can obtain the greatest benefit from the environmental, social and economic benefits related to this important strategy.