The Gran Chaco Pathways Towards a Sustainable Future 2025

Agriculture and livestock expanding into deforested areas have remained the dominant economic activities in the Gran Chaco, with significant growth over the past decades. According to data from MapBiomas Chaco, agricultural land cover increased by 110% from 10 million hectares in 2001 to around 21 million hectares by 2023. Figure 1 illustrates the distribution of agricultural lands within the biome in 2023, with crops (primarily soybeans, corn and cotton) accounting for 52% of the total agricultural area, while pasture comprises the remaining 47%. Distribution of agricultural lands in Gran Chaco, 2023 FIGURE 1 Commerical forest plantation Pasture Agriculture52% 47% 1.15% Source: MapBiomas.18 The expansion of the agricultural frontier in the Argentinian, Bolivian and Paraguayan Gran Chaco is driven by global demand for grains and beef, combined with the availability of relatively affordable lands with high production potential. While this trend bolsters global supply chains, it also presents a significant opportunity to stimulate local economic development. With the adoption of sustainable development practices, minimization of deforestation and prioritization of environmental conservation, the Gran Chaco has the potential to become a vital supplier of grains, beef and other products for both local and regional markets.This potential must be considered in the broader context of regional agricultural trends, including Brazil’s efforts to address the critical challenges faced by the Cerrado biome. While the Cerrado continues to grapple with significant issues such as deforestation and land conversion, it has seen the introduction of promising initiatives supported by multiple stakeholders and public- private partnerships. These efforts aim to balance agricultural productivity with environmental protection, offering valuable examples that could inform and inspire sustainable development approaches in the Gran Chaco. Climate change and environmental degradation in the Gran Chaco BOX 4 In addition to unsustainable agricultural expansion – the primary driver of deforestation and land conversion – the Gran Chaco is increasingly affected by climate change. Prolonged droughts, extreme heat waves, floods and wildfires have accelerated the degradation of ecosystem services across the region.19 These climate impacts are exacerbated by the region’s ongoing environmental degradation, creating a feedback loop: degradation heightens the biome’s vulnerability, increasing the frequency and severity of these phenomena, which in turn further degrade the environment. Additionally, these extreme events disrupt water availability and access, affecting both human consumption and agricultural production.20 This cycle is compounded by forest loss and resulting carbon emissions. As forested areas shrink, their capacity for carbon sequestration diminishes, while rising emissions drive global warming, amplifying climate change effects. The Gran Chaco: Pathways Towards a Sustainable Future 13