COSTA RICA Law and Practice Contributed by: Germán Pochet Ballester, BioIuris
6.6 Environmental Audits In Costa Rica, companies are subject to environmen- tal audit requirements, particularly those whose activi- ties are likely to generate significant environmental impacts; primarily, corporations that have undergone the Environmental Impact Assessment process must periodically demonstrate compliance with the envi- ronmental commitments and mitigation measures established in their Environmental Viability Permit. These audits must be carried out by authorised envi- ronmental auditors. In addition to mandatory audits, some corporations carry out voluntary environmental audits to obtain or maintain certifications such as ISO or the Costa Rican Environmental Seal. In Costa Rica, legal representatives or board members of corporations may, in certain circumstances, be held personally liable for environmental damage or breach- es of environmental law committed by the company. The general rule is that the legal entity bears primary responsibility; however, individual liability may arise where there is personal participation, negligence or authorisation of the wrongful acts. Depending on the type of liability, both the corporation and its represent- atives may face obligations to restore the environment and/or compensate for damages, as well as fines, suspension or revocation of permits, and, in some cases, imprisonment. Nevertheless, environmental criminal cases in Costa Rica rarely result in custodial sentences, as the focus is generally on restoration of the damage caused rather than punitive sanctions. 7. Personal Liability 7.1 Directors and Other Officers
uninsured, including liability for contamination, resto- ration costs or third-party environmental damage.
9. Lender Liability 9.1 Financial Institutions/Lenders
In Costa Rica, financial institutions or lenders can, in certain circumstances, be held liable for environ- mental damage, particularly under the principle of strict (objective) liability that governs environmental matters. This means that liability does not necessar- ily depend on proof of fault, negligence or intent, but rather on the existence of a causal link between the activity financed and the environmental harm. For this reason, financial institutions are increasingly expected to conduct environmental due diligence before financ- ing projects, ensuring that borrowers comply with environmental regulations and have the necessary permits and impact assessments issued by SETENA or other competent authorities. 9.2 Lender Protection In Costa Rica, lenders typically protect themselves from potential environmental liability by conducting comprehensive environmental due diligence prior to approving financing. This includes verifying that the borrower holds all required environmental per- mits, approvals and licences issued by the relevant authorities such as SETENA and SINAC, and that the project complies with applicable environmental stand- ards. Loan agreements often include environmental representations, warranties and covenants, requiring the borrower to maintain compliance throughout the duration of the project and to indemnify the lender for any environmental damage or regulatory breach.
8. Insurance 8.1 Environmental Insurance
10. Civil Liability 10.1 Civil Claims
In Costa Rica, environmental insurance is not currently available as a standard product in the local market, nor is it legally required for companies or individu- als. There is no compulsory environmental insurance scheme related to contamination, pollution or nui- sance, and no regulatory framework mandating such coverage. As a result, most environmental risks remain
In Costa Rica, environmental complaints or claims can be filed before the Administrative Environmental Tri- bunal (TAA) or the Environmental Prosecutor’s Office, depending on the nature of the violation. Addition- ally, if an issue arises within an ongoing administra- tive procedure, claims may also be submitted to the Ministry of Environment and Energy (MINAE) or other
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