Foreword The Gran Chaco is at a crossroads. Spanning more than a million square kilometres across Argentina, Paraguay, Bolivia and Brazil, it is one of the largest remaining dry forest ecosystems in the world. It is also one increasingly at risk. While much attention has been focused on South America’s other great forested landscapes, the Gran Chaco has quietly endured decades of deforestation and degradation, largely driven by unsustainable agricultural expansion. In the past two decades alone, more than 13 million hectares of forest – an area larger than England – have been lost. But the story of the Gran Chaco is not just one of loss; it is also a story of potential. This vast and diverse region, home to more than 5.6 million Indigenous People, is a critical carbon sink, a biodiversity hotspot and a driver of economic opportunity. It is a place where sustainable production and protection do not have to be at odds. Instead, they can reinforce each other – if we get the incentives and governance right. That is what makes this report so important. It provides a roadmap for how we can shift from a business-as-usual model to one that embeds sustainable development at its core. It builds on lessons learned from other regions – like the Amazon and the Cerrado – where sustainability efforts have demonstrated that economic growth, environmental protection and social development can go hand in hand. The stakes could not be higher. Climate change is accelerating and the loss of the Gran Chaco’s forests not only contributes to global carbon dioxide (CO2) emissions but also threatens water security, food production and biodiversity across the region. The economic consequences are just as severe, with prolonged droughts, floods and wildfires increasingly disrupting livelihoods and national economies. If we fail to act, the consequences will be felt far beyond the region’s borders.Achieving a sustainable future for the Gran Chaco requires recognizing its plurality – a region of many Chacos within one. Across Argentina, Bolivia and Paraguay, the Chaco is shaped by distinct ecosystems, cultures and economic dynamics, yet it faces shared challenges and common opportunities. A harmonized yet context-specific approach is essential – one that respects the identity of each Chaco and the people who call it home, while fostering a coordinated tri-national agenda. By embracing this diversity, strengthening governance and ensuring that development strategies reflect local realities, we can unlock pathways for inclusive and sustainable growth. What is needed now is action. Governments can strengthen land-use policies and enforcement, ensuring that nature remains a fundamental part of development strategies. Financial institutions can mobilize capital to reward conservation and sustainable production, leveraging tools such as carbon markets, green bonds and blended finance instruments to facilitate the transition of the agricultural production model. Companies involved in production and sourcing within the region can commit to transparent, deforestation-free supply chains that prioritize resilience over short-term profit. And Indigenous Peoples and local communities – who have stewarded this land for generations – should be at the centre of decision-making, with their rights and knowledge recognized and respected. The Gran Chaco offers a rare opportunity to get this right. The solutions exist: regenerative agriculture, sustainable cattle ranching, jurisdictional approaches to land-use planning and management, and nature- based finance models. What we need now is scale, investment and alignment across sectors. The future of the Gran Chaco is not yet written. With the right investments, policies and partnerships, it can become a global model for how landscapes can be managed to benefit both people and nature. The work presented in this report lays out a compelling vision for how we can achieve that balance. Now, it is up to all of us to turn vision into reality.Jack Hurd Head of Nature, World Economic Forum; Executive Director, Tropical Forest AlliancePablo Fuentes Director, REVER The Gran Chaco: Pathways Towards a Sustainable Future March 2025 3 The Gran Chaco: Pathways Towards a Sustainable Future

The Gran Chaco Pathways Towards a Sustainable Future 2025