In a groundbreaking achievement, Costa Rica has cemented its position as Latin America’s renewable energy champion, with an astounding 98% of its electricity generated from clean sources over the past five years. This remarkable feat, highlighted in CAF’s Economy and Development Report (RED) 2024, showcases how this small nation is redefining sustainable development in the region.

The country’s commitment to renewable energy goes beyond environmental stewardship; it’s a catalyst for economic growth and social equity. Costa Rica boasts the highest rate of residential electrification in Latin America, with 70% of households using electricity for cooking and heating. This clean energy revolution has attracted international attention, spurring a 24% surge in foreign direct investment in 2023 and the launch of 59 multinational projects in 2023-2024 alone.

“For the first time, we can decouple economic growth from emissions,” declares CAF Executive President Sergio Diaz-Granados. This decoupling is evident in Costa Rica’s thriving export sector, where sustainability-conscious global markets have driven a 16% increase in coffee exports and a 20% rise in cocoa exports in 2024.

Costa Rica’s influence extends beyond its borders through the SIEPAC interconnection system, which allows the country to export surplus renewable energy to neighboring nations. The Central American Electrocorridor, featuring over 50 EV charging stations along key trade routes, further solidifies Costa Rica’s role as a regional green energy powerhouse.

The country’s commitment to sustainability is also transforming its industrial landscape. Cement plants are piloting carbon-capture technology, while Procomer, the nation’s trade promotion agency, has allocated $40 million to fund startups in green hydrogen and AI-driven grid optimization.

However, the path to a fully renewable Latin America is not without challenges. The RED 2024 report indicates that the region needs to increase its renewable energy capacity by 3.5 times by 2040 to meet climate commitments. Costa Rica’s success offers a blueprint for achieving this goal, emphasizing public-private partnerships, bioindustrial innovation, and eco-tourism promotion.

“Sustainability isn’t a cost—it’s our competitive edge,” asserts Adriana Acosta, Director of esencial COSTA RICA. This sentiment is echoed by Environment Minister Franz Tattenbach, who states, “Every kilowatt we export strengthens democracy.”

As Costa Rica continues to light the way for a continent, the RED 2024 report concludes with a powerful message: “The future is renewable, or it isn’t at all.” Through its innovative approach to clean energy, Costa Rica is not just saving trees—it’s growing economies, empowering communities, and setting a new standard for sustainable development in Latin America and beyond.