Energy transition and design of a risk management policy through financial derivatives to hedge fuel prices

implementation

The general objective of this Technical Cooperation (TC) is the institutional and financial strengthening of the Costa Rican Petroleum Refinery (RECOPE by its Spanish acronym), in a context of energy transition and gradual decarbonization of the Costa Rican economy, which presents complex financial, fiscal and economic challenges for oil companies and for the country. The specific objective is to support the Interinstitutional Committee, in which RECOPE participates, in the development of a risk management policy proposal using financial derivatives to hedge fuel prices and, in the design, and evaluation of a pilot project to mitigate the volatility of international fuel prices in order to stabilize local sales prices.