Context

Costa Rica is committed to achieving a decarbonised economy by 2050, as outlined in its National Decarbonisation Plan.

While the country generates almost all its electricity from renewable sources, energy consumption remains reliant on fossil fuels, particularly in transport, which accounted for over half of total energy use in 2022. This reliance leads to significant greenhouse gas emissions. 

The updated Nationally Determined Contribution highlights green hydrogen as a solution to these challenges, complementing the National Green Hydrogen Strategy published in 2022.

Objective

The government of Costa Rica promotes the use of green hydrogen in transportation and industry, contributing to the country’s climate goals.

Approach

To achieve its objective, the project, in partnership with the Ministry of Environment and Energy (MINAE) of Costa Rica, implements the following measures: 

1. Financial assistance: It facilitates low-interest loans and subsidies for initial investments in green hydrogen projects by combining grants from the Mitigation Action Facility with financial resources from the International Finance Corporation.
2. Technical assistance: The project supports the government of Costa Rica in implementing the National Green Hydrogen Strategy, and enhances the leadership role of MINAE for this purpose. It also assists with preparing business plans for green hydrogen investments and promotes knowledge exchange through collaboration with institutions and companies from other countries as well as regional and international organisations. 

Last update: April 2025