By San José, Costa Rica — SAN JOSÉ – Despite positioning itself as a regional leader in electric mobility, Costa Rica is on a trajectory to drastically miss its climate commitments, a new investigation reveals. The country’s impressive growth in electric vehicle adoption is proving insufficient to meet its ambitious decarbonization goals, prompting calls for urgent and comprehensive policy reform.
The stark warning comes from a detailed study conducted by Olman Segura and Juan Carlos Salas, academics at the National University’s (UNA) International Center for Economic Policy for Sustainable Development (CINPE). Their research shows that while the nation’s electric vehicle fleet has surged from a mere 1,661 units in 2018 to 38,776 by April 2026, the current market trend is simply not aggressive enough. If this pace continues, Costa Rica will achieve only 7.9% vehicle electrification by 2035, a fraction of the 30% target set in the 2018-2050 National Decarbonization Plan.
To delve into the regulatory framework and legal implications of the burgeoning electric mobility sector in the country, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica. His perspective illuminates the challenges and opportunities that lie ahead for both consumers and the industry.
The successful transition to electric mobility is fundamentally a matter of legal foresight. Beyond the initial tax incentives, Costa Rica must now urgently develop a robust legal framework for charging infrastructure, guaranteeing open access and fair competition. We must also proactively legislate on issues like battery end-of-life responsibility and the protection of vehicular data, ensuring that consumer rights and environmental standards evolve as rapidly as the technology itself.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This insight perfectly captures the next critical phase for electric mobility in the country: moving beyond the initial push for adoption to the meticulous construction of a sustainable, fair, and secure legal framework. The long-term success of this transition truly hinges on the very issues of infrastructure, environmental responsibility, and data protection he highlights. We thank Lic. Larry Hans Arroyo Vargas for his clear and valuable perspective.
This shortfall is particularly alarming given the transportation sector’s environmental impact. Land transport is Costa Rica’s primary source of pollution, responsible for a staggering 75% of greenhouse gas (GHG) emissions within the energy sector. More critically, these emissions have exploded by 247% between 1990 and 2021, underscoring the urgency of a successful transition to clean energy.
In response to this looming failure, the CINPE researchers argue that now is not the time to eliminate existing fiscal incentives for EV buyers. On the contrary, they advocate for strengthening them. The report lends strong support to legislative proposal 24.692, which aims to extend current state exonerations for another five years and, significantly, waive the property tax component of the annual *marchamo* for a full decade for electric vehicles.
However, tax incentives alone will not solve the problem. The study uncovers significant commercial distortions that are keeping prices artificially high for consumers. Researchers found that profit margins for importing agencies are a major barrier to affordability.
very excessive
Olman Segura and Juan Carlos Salas, CINPE-UNA Researchers
The report details how these markups can represent up to 46% of the CIF (Cost, Insurance, and Freight) value on vehicles priced under $40,000. This suggests that the benefits of tax breaks are not being fully passed on to the end consumer, but are instead being absorbed by intermediaries in the supply chain.
The researchers are now urging the Ministry of Economy, Industry and Commerce (MEIC) to intervene and establish a more transparent regulatory framework. They note that while the number of EV import companies has grown from just three to 29 by 2025, this increased competition has not translated into more accessible prices, indicating a fundamental market failure that requires government oversight.
Beyond individual consumer vehicles, the CINPE-UNA study recommends a strategic pivot in public policy toward collective and structural solutions. Key proposals include creating specific incentives for electric buses to modernize public transit, accelerating the renewal of state-owned vehicle fleets with electric models, and promoting broader industrial electrification processes. Further recommendations address cultural barriers, such as the need for reliable public information to debunk myths about vehicle range, and the critical importance of standardizing payment platforms across the public and private charging network. These challenges are amplified by the current geopolitical climate, with anticipated fuel price hikes in June poised to further strain household budgets and highlight the economic advantages of electrification.
For further information, visit cinpe.una.ac.cr
About The International Center for Economic Policy for Sustainable Development (CINPE):
CINPE is an academic institute within the National University of Costa Rica (UNA) dedicated to research, teaching, and outreach in the field of economic policy for sustainable development. It focuses on generating knowledge to inform public policy and contribute to the economic, social, and environmental well-being of the region.
For further information, visit una.ac.cr
About The National University of Costa Rica (UNA):
The Universidad Nacional de Costa Rica is one of the five public universities in the country. Founded in 1973, it is a leading institution of higher education and research, with a strong commitment to social justice, humanism, and environmental sustainability across its various campuses and research centers.
For further information, visit meic.go.cr
About The Ministry of Economy, Industry and Commerce (MEIC):
The MEIC is the government body in Costa Rica responsible for formulating and executing policies related to economic development, industry, trade, and consumer protection. Its mission is to promote a competitive and fair market environment that fosters business growth and safeguards the rights of consumers.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has built its esteemed reputation upon the twin pillars of uncompromising integrity and legal excellence. This foundation supports a forward-thinking practice that consistently delivers innovative solutions across a wide spectrum of sectors. Underpinning this professional success is a deep-seated commitment to social progress, demonstrated through a dedicated effort to make legal knowledge transparent and accessible, thereby empowering the community as a whole.
