Costa Rica, known for its pioneering net-zero emissions plan, has strengthened its commitment to reducing greenhouse gas emissions (GHG) from transportation by signing the Zero Emission Vehicles (ZEV) Declaration. Costa Rica is the latest Latin American economy to commit to working towards all new sales of cars and vans being zero emission by 2035.
Like many other jurisdictions, transportation is the primary driver of GHG emissions in Costa Rica, accounting for nearly 40% of the country’s total emissions, three-quarters of which come from road vehicles. Costa Rica has set an ambitious target of achieving carbon neutrality by 2050, as outlined in its Nationally Determined Contribution (NDC), which is the country’s plan to reduce emissions in-line with the Paris Agreement as defined by the United Nations. This NDC is codified for implementation through Costa Rica’s National Decarbonization Plan, which focuses on “10 key areas to reverse the increase of greenhouse gas emissions, as well as to encourage the modernization and revitalization of the economy through a vision of green growth.”
“Costa Rica’s decarbonization challenge is to reduce emissions from the energy sector, which represents 65% of our total emissions, and the transport sector, which also has great opportunities for reduction,” says Franz Tattenbach, minister for the environment and energy. “Therefore, signing the ZEV Declaration represents the building of alliances that will allow us to move towards an energy transition and the fulfilment of our National Decarbonization Plan.”
Electric mobility is a key part of Costa Rica’s strategy, with incentives like tax exemptions and free parking to encourage the adoption of electric vehicles (EVs). For instance, battery-electric vehicles valued under $30,000 are exempt from import taxes. EVs are also exempt from license plate driving restrictions, which restricts certain vehicles from entering the capitol downtown area to minimize congestion, and parking meter fees in designated areas. Thanks to these incentives, the country saw a rapid growth in EV sales with over 5,000 units sold in 2023, positioning Costa Rica as a regional leader with the highest market share.
In the heavy-duty sector, the country is actively transitioning its public bus fleet to electric, with several cities already piloting electric buses. The electrification of public buses not only reduces emissions and cleans urban air quality, but also modernizes the aging fleet and improves public health outcomes. This effort is supported by Law 9518, mandating a gradual replacement of the bus fleet with electric models at a rate of at least 5% biennially.
To further support the growth of electric mobility, Costa Rica is investing heavily in the expansion of charging infrastructure across the country. It established the region’s first nationwide EV charging network and plans to expand the network to 1,000 chargers by 2025. To achieve this goal, the country mandated the installation of charging stations every 80 km on national roads and every 120 km on county roads.
Costa Rica’s commitment to decarbonizing transportation through supportive policies, electric mobility, and improved public transit services serves as a model for not only other countries in the region, but also globally. By signing the ZEV Declaration, the country reaffirms its leadership in clean transportation and its dedication to the global acceleration of the ZEV transition.
