COSTA RICA Law and Practice Contributed by: Germán Pochet Ballester, BioIuris
• When an environmental incident or contamination event occurs, companies are required to notify the competent authority immediately and implement corrective and preventative measures. Failure to report environmental damage or non-com- pliance can lead to administrative, civil and even criminal liability. 16.2 Public Environmental Information In Costa Rica there is a broad constitutional and legal right to access environmental information held by public authorities. This right is grounded in the Constitution, which guarantees freedom of access to administrative information, and further developed through the Law on Access to Public Information and Transparency. Together with Article 50 of the Constitu- tion and the Environmental Organic Law, these norms establish the foundation for an open, transparent and participatory environmental governance framework. In environmental matters, the right to information must be understood from a participatory and democratic perspective: every individual or community has the right to request and obtain information from any public authority or body regarding activities, projects or deci- sions that may affect the enjoyment of the right to a healthy and ecologically balanced environment. This access cannot be obstructed or unjustifiably restricted by state institutions. 16.3 Corporate Disclosure Requirement Corporations are not generally required to include environmental information in their annual corporate reports or financial statements, unless their activities involve significant environmental impacts or they are subject to specific environmental permits that impose reporting obligations. However, several legal and regu- latory frameworks establish situations in which disclo- sure is mandatory, particularly for companies engaged in industrial, extractive or infrastructure activities. • Environmental Reporting to SETENA or MINAE – Corporations that have obtained environmental viability must periodically submit environmental compliance and monitoring reports by the envi- ronmental regent of the project. These reports detail compliance with mitigation measures, waste
management, emissions and other environmental obligations. • Voluntary Corporate Disclosure – Some compa- nies, particularly those with foreign investors or operating under ESG (Environmental, Social and Governance) standards, voluntarily include environ- mental performance metrics, sustainability goals or carbon footprint data in their annual sustainabil- ity reports. These disclosures follow international frameworks such as the Global Reporting Initiative (GRI) or ISO 14001 environmental management standards. 16.4 Green Finance Green finance arrangements have been implemented to promote environmentally sustainable development. These mechanisms aim to channel public and private investment into projects that reduce greenhouse gas emissions, enhance resource efficiency and protect biodiversity. The following are examples of green finance in Costa Rica. • Green Bonds – Some public banks as well as private banks have developed green bond pro- grammes to finance renewable energy, sustainable transportation and waste management projects. These issuances are regulated and monitored by the General Superintendency of Securities (SUG- EVAL) and the Central Bank of Costa Rica, in line with international standards. • National Decarbonization Plan – The plan promotes public and private green investment and credit programmes for clean energy, electric mobility and conservation projects, under the co-ordination of the Ministry of Environment and Energy and the Ministry of Finance.
17. Transactions 17.1 Environmental Due Diligence
Environmental due diligence is commonly conducted in real estate transactions, especially when the target corporation or property involves activities with poten- tial environmental impacts. This process is essential to assess legal compliance, prevent liability for envi- ronmental damage and ensure that the purchaser or investor is not acquiring hidden risks. Typical envi-
117 CHAMBERS.COM
Powered by FlippingBook