Territorial planning of native forests in Argentinean Gran Chaco provinces MAP 5 Source: ProYungas Foundation. Paraguay situation update Achievements and areas for improvement in the Forest Law: Paraguay’s Forest Law (Law No. 422/73) mandates that properties larger than 20 hectares in designated forest zones must preserve at least 25% of their area as a forest reserve.83 Additionally, complementary regulations, including the Water Resources Law (Law No. 3239/2007), various decrees, resolutions from official bodies such as INFONA (Paraguay’s National Forest Institute), plus improved monitoring efficiency have contributed to conservation requirements reaching approximately 40% in certain properties and regions. This percentage may vary depending on factors such as property size, the presence of water resources and the extent of forest cover within the property. Nevertheless, stakeholders consulted for this report identified opportunities to refine the Forest Law’s design to enhance its effectiveness. The uniform protection levels and parcel-based approach, while ensuring compliance, may also contribute to landscape fragmentation, posing challenges for ecosystem connectivity and broader conservation goals. Additionally, the law could be enhanced to better address deforestation risks and prioritize areas of high biodiversity significance. As land-use changes, particularly livestock-driven expansion, continue to shape the region, strengthening integrated land management strategies could help balance sustainability with economic development. Enhancing wildfire management: Paraguay is working towards improving wildfire management strategies, with a comprehensive system under development since 2021. Moving towards a preventive approach, rather than reactive responses, would enhance preparedness and resilience in the face of increasing climatic and land-use pressures. Incentives and tax exemptions to conserve forest lands: Forestry authorities consulted for this report have noted that, over the past four years, tax exemptions for conserved land have been introduced in eastern Paraguay, encouraging landowners to maintain areas not used for production. While this initiative has not yet been implemented in the Gran Chaco, it presents a viable opportunity to incentivize sustainable land management in the biome. Expanding such measures, alongside technical and financial support for conservation, could create economic incentives for sustainable production. 25% of the land on properties over 20 hectares (in designated forest zones) must be preserved as a forest reserve under Paraguay’s Forest Law. The Gran Chaco: Pathways Towards a Sustainable Future 37

The Gran Chaco Pathways Towards a Sustainable Future 2025